Contributing Member of the Legal, Economic & Regulatory Affairs Councils

GLG News by this Author

U.S. Export Controls Must Be More Responsive to 21st Century Economic Reality

August 16, 2009

Analysis of:U.S. business welcomes Obama export control review | www.reuters.com

The failure of successive Congresses and administration to properly address outmoded systems for deciding which exports should be controlled has led to an ad hoc and unpredictable system that places U.S. exporters at an unnecessary and significant competitive disadvantage in world markets.  The current system, such as it is, has its roots in a Cold War, "Pax Americana" paradigm and cannot possibly serve U.S. economic and foreign policy interests to the extent required.

USTR Rightfully Suggests That African Nations Get Their Own Houses In Order

August 10, 2009

Analysis of:Kirk tells Africa to improve from within | www.ft.com

The African Growth and Opportunity Act (AGOA) provides various trade preferences to African nations as a means to stimulate economic growth and development.  However, rather than resist extension of U.S. trade preferences they receive to other less-developed countries, African nations should look more closely how they might improve their own competitiveness from within, rather than relying principally on externally-supplied largesse.

Foreign Corrupt Practices Act May Chill Business But Not Everyone Agrees

August 10, 2009

Analysis of:In Antibribery Law, Some Fear Inadvertent Chill on Business | online.wsj.com

Efforts to revise the 1977 Foreign Corrupt Practices Act began in the early 1980s and eventually led to some changes in the law. However, it remains less than clear what constitutes permissible vs. impermissible payments. Despite various international agreements intended to combat corruption, the fact remains that other countries do NOT view these issues through such strict legal lenses.

Foreign Corrupt Practices Act Reach May Be Longer Than You Think

August 10, 2009

Analysis of:Fraud Spotlight on Hollywood | www.ft.com

Even though filmmakers and studios may view such cash inducements to foreign officials as "common" ways to obtain or retain business abroad, it is still illegal under the U.S. Foreign Corrupt Practices Act (FCPA).   However, the law is ambiguous as the "bright line" compliance standard lawmakers and affected interests have sought since enactment remains elusive. Enforcement can be unpredictable and attendant civil and criminal penalties can be very significant. 

Have Russia, Kazakhstan and Belarus Decided WTO is Passé?

June 9, 2009

Analysis of:Russia Changes Its WTO Strategy | online.wsj.com

Since 1947, many nations have agreed that more or less uniform global trade rules are in the best interests of the global economy.  The General Agreement on Tariffs and Trade (GATT) and its successor organization the World Trade Organization (WTO) reflect this consensus. A major benefit of this system is that companies seeking to do business across borders can receive some assurance that their goods and services will be protected from discriminatory tariff and non-tariff treatment, and receive the same treatment as their competitors in the target market or from third countries. However, at this time and depending on how one counts, dozens if not hundreds of "extra-WTO" bilateral and regional trade agreements have been negotiated worldwide.  By their nature, these agreements provide benefits to signatory nations that are not available to non-signatory nations.  This presents the question of whether these agreements will eventually undermine the WTO and the world economy.

Ending Cuba Embargo - Will It Happen Soon Enough For U.S. Energy Interests?

June 8, 2009

Analysis of:Cuba could become U.S. oil supplier at embargo's end | www.mcclatchydc.com

Various commentators have stated that significant quantities of crude oil exist off of Cuba's coastline.  The question thus becomes: who will provide the investment necessary to extract and refine this crude for consumption? At present, U.S. law prevents U.S. firms from participating in contracts to extract and refine Cuban crude. While that same U.S. law may penalize non-U.S. firms engaging in such extraction by limiting their access to U.S. markets, it would not ban such business in third markets. For many years, large majorities in Congress have signaled their support for loosening or ending the embargo against Cuba.  But embargo supporters' adept use of parliamentary processes has enabled retention of the embargo to this day.  it is by no means clear that the U.S. government will assign priority to changing this policy in the near future.

U.S. Cuba Policy Hurts U.S. Foreign Policy and Economic Interests

June 1, 2009

Analysis of:Obama's efforts to engage Cuba facing big test | news.yahoo.com

Like many other news reports, this article implies that it is primarily U.S. executive branch action and discretion that can be used to shape future U.S. policy toward Cuba.  That implication is false. The fact is that the "LIBERTAD" Act (Public Law No: 104-114) ties the executive branch's hands in many ways besides establishing removal of Cuba's current leadership as a precondition for normalization. This inflexibility is compounded by the fact that not only do other nations NOT maintain comparable sanctions against but some also maintain "blocking statutes" that penalize their nationals for compliance with U.S. laws!

Foreign "bribery" - reconciling practicality and politics

May 26, 2009

Analysis of:U.S. Cracks Down on Corporate Bribes | online.wsj.com

Efforts to revise the 1977 Foreign Corrupt Practices Act began in the early 1980s and eventually led to some changes in the law.  However, it remains less than clear what constitutes permissible vs. impermissible payments. Despite various international agreements intended to combat corruption, the fact remains that other countries do NOT view these issues through such strict legal lenses.  The result that U.S. commercial interests (and other persons subject to this extraterritorially applied US law) remain at a competitive disadvantage relative to European and Asian competitors. The U.S. Justice Department's criminal division provides guidance that is intended to assist entities subject to the FCPA undertake due diligence with respect to compliance.  But such diligence is no guarantee that entities will not face costly investigation and prosecution.  Congress is aware of these dilemmas but heightened focus on corporate ethics since Enron etc has minimized the likelihood of real reform.

Page : 11 to 8 of 8