Tariffs used to be the big problem, but today behind-the-border non-tariff barriers - discriminatory regulations and standards, for example - have become serious obstacles to exporters.
Three Squire Sanders trade attorneys, including former USTR Rob Portman, explain the options available to a frustrated exporter: Act Globally: How to Navigate today's Hidden Trade Barriers.
A two-track approach is recommended. Work with officials in the country with the barrier, sure, but also work with the U.S. government:
...“You work really at two levels,” says
Singham. “One is the international,
external level where you’re trying to get the
U.S. government to pressure a particular
foreign government. You’re also working
domestically to try to get local agencies to
help resolve the problem. If you just do one
side, it’s usually not enough.”...
There are several approaches to bring pressure:
...ask your government
to initiate an action under the provisions of
the ever-growing World Trade Organization
(WTO). Dispute resolution is a central pillar
of the WTO’s mission, but as with any large
institution, it is not particularly speedy.
“Unfortunately, the reality is that it can take
years,” Portman says. “It often requires
significant time and resources, and the
remedy may not be directly beneficial.”
Are there domestic U.S. laws that may be applicable?
Another tack is to see if there are any laws,
such as the Foreign Corrupt Practices Act,
under which a case could be brought. With
increasing international collaboration on
policing corruption, this can be a swifter and
more effective option than it was in the past.
How about conditioning foreign aid:
More sophisticated companies sometimes
look to affect the ways the United States
offers foreign aid to developing countries
as a bargaining chit. Millennium Challenge
Accounts in particular provide aid based on
a country’s compliance with criteria in areas
of entrepreneurship, enterprise and law.
Get your issue addressed in a free trade agreement
An ideal situation is to address your
concerns as free trade agreements are being
negotiated....
And communicate with the USTR's office and your congressman. A corporate general counsel who can open up new markets for the firm
...
for once is not a cost center. If you can act
to increase market share, you become a
profit center.”
