Current Legal Landscape: The Netherlands aligns with EU sanctions and export control regimes, with a focus on advanced technologies and enforcement. Export controls primarily target military and dual-use goods, including semiconductors, quantum computing, and additive manufacturing. Recent measures emphasise safeguarding strategic industries. Dutch law integrates EU sanctions, requiring strict compliance from individuals and businesses.

Advice for Clients in International Trade:

• Compliance Programs: Update compliance frameworks to address heightened risks, especially regarding global obligations for sanctions enforcement.
• Comprehensive Due Diligence: Go beyond counterparty screening by evaluating transaction risks and economics.
• Stay Informed: Proactively monitor regulatory changes and engage expert counsel for ongoing updates and training.

Threats and Opportunities:

• Geopolitical Uncertainty: Ongoing tensions in Ukraine, potential changes under the new US administration, and developments in the Middle East and Taiwan Strait pose risks.
• EU Strategic Autonomy: Opportunities arise from EU initiatives to protect advanced technologies and reduce dependencies in critical areas.

Client Satisfaction: A team-driven, client-focused approach ensures tailored advice and efficient collaboration. Bennink Dunin-Wasowicz emphasizes expertise, risk assessments, compliance program development, and continuous training to address evolving international trade challenges.

Technological Advancements: Digitalisation, AI, machine learning, and IoT are streamlining global trade processes, improving efficiency, transparency, and compliance. Clients benefit from reduced costs, better inventory management, and enhanced regulatory adherence.

What is the current legal landscape for International Trade in your jurisdiction?

The relevant legal landscape in the Netherlands reflects EU sanctions and export controls regimes, with a growing emphasis by national authorities on enforcement and advanced technologies. Key to this framework are export controls on military and dual-use goods, primarily governed by EU regulations, such as the EU Dual-Use Regulation. However, EU Member States retain the authority to implement additional national measures to safeguard objectives related to national security, human rights, and international stability. The Netherlands has exercised this authority by introducing significant unilateral export control measures targeting critical technologies, including semiconductors, quantum computing, and additive manufacturing. Since June 2023, these controls have expanded, with a focus on advanced semiconductor manufacturing equipment, emphasizing the Netherlands’ proactive approach to protecting strategic industries.

In addition to export controls, the Netherlands operates under the EU sanctions framework, implementing sanctions established by both the EU and the United Nations. EU sanctions law are incorporated into Dutch law through sanctions orders based on the Sanctions Act 1977. EU Regulations, which are directly applicable in the Netherlands, take precedence over conflicting national laws. These sanctions target various countries, particularly Russia because of the war, requiring compliance from all individuals and businesses within the Netherlands, including international corporations with local offices.

What three essential pieces of advice would you give to clients involved in International Trade matters?

1. Ensure that your compliance programs are updated to address the current heightened risk environment. EU operators are at the forefront of implementing sanctions and export controls. Effective implementation presupposes the development and roll out of risk-based compliance programs. The EU continues to raise the bar on the private sector. Most recently, the new “best efforts” obligations require operators to prevent violations of Russia sanctions in their subsidiaries anywhere in the world. EU sanctions compliance has gone global.

2. Conduct Comprehensive Due Diligence: Regulators expect operators to perform multi-layered due diligence based on a variety of factors. Trade compliance due diligence isn’t just screening counterparties. Effective due diligence means taking a broad view of the risks and the economics of transactions and taking additional steps to evaluate potential transactions.

3. Stay updated with the regulatory developments: EU sanctions law and export controls are undergoing rapid regulatory changes, accompanied by frequent clarifications from authorities. To navigate this dynamic landscape, companies should strengthen their ability to stay updated on the latest developments. This can be achieved by engaging external counsel with expertise in sanctions and export controls, organizing regular training sessions for compliance teams.

What are the greatest threats and opportunities in International Trade law in the next 12 months?

We live in an era of great uncertainty and tensions. It is nearly impossible to predict what the coming months will hold. We will be very attentive to the first decisions of the new Trump administration. In February 2025, Russia’s war of aggression against Ukraine will enter its third year. There may be significant developments in the Middle East following the collapse of the Asad regime in Syria. Of course, a lot things in this space will depend on the scenario in the Taiwan strait and more generally China’s reactions to U.S. policies. Meanwhile, we expect that the EU will push forward several initiatives to protect its advanced technologies and become more autonomous in several critical areas.

How do you ensure high client satisfaction levels are maintained by your practice?

We are one of the only law firms in European fully dedicated to sanctions and export controls. At Bennink Dunin-Wasowicz, we ensure high client service and experience by emphasizing a team-driven, client-focused collaborative approach. Our partners and associates are deeply involved in every client matter, providing tailored, high-quality legal advice based on teamwork that aligns with the unique needs of each business. By working with lean teams of highly skilled professionals, we maintain efficiency and responsiveness, fostering close collaboration with our clients throughout the process.

We are passionate about what we do. Our practice combines technical expertise and practical experience with a global perspective with strong European roots. We stay at the forefront of trade compliance developments, providing guidance on sanctions, export controls, and other regulatory challenges. Additionally, we support our clients by developing compliance programs, conducting risk assessments, enhanced due diligence, and offering training, ensuring they are equipped to navigate the complex and evolving international trade landscape. We are committed to personalised service, coupled with our deep knowledge and proactive approach.

What technological advancements are reshaping International Trade law and how can clients benefit from them?

Technological advancements are transforming international trade law by making global trade more efficient and transparent. Digitalisation has replaced paper-based systems with electronic documents and automated processes, significantly reducing transaction times and errors. Artificial intelligence (AI) and machine learning improve supply chain management, predictive analytics, and regulatory compliance, further enhancing trade efficiency. Additionally, the Internet of Things (IoT) enables real-time tracking of goods, optimizing inventory management and reducing delays. Business operators can benefit from these advancements through increased operational efficiency, reduced costs, and improved compliance with international regulations.

Sources:
https://www.oecd.org/en/topics/sub-issues/new-technologies-and-trade.html; https://www.forbes.com/councils/forbesfinancecouncil/2022/09/02/how-technology-can-help-global-trade-become-more-efficient-inclusive-and-equitable/