Economic Sanctions And Arbitration: Are We Ready?

We live in a world today in which the foreign policy agenda of one country can insert itself at any moment into the business dealings of companies, persons, and governments across the globe. We are referring, of course, to the US government's increasingly frequent use of economic sanctions, export controls, and other trade restrictions as a tool of foreign policy ("US sanctions") and to the imposition of similar measures by other countries, often in response to US sanctions. Understanding, adjusting to, and minimizing the risks of these restrictions pose complex challenges for business persons, in-house and external counsel, compliance professionals, and other participants in international business transactions. While the compliance risks are difficult enough to navigate, US sanctions are not merely a compliance issue. Increasingly, US sanctions are giving rise to commercial disputes (many of which are subject to mandatory arbitration agreements) and even beginning to