Partner Jonathan Lim discussed recent trends in cross-border legal disputes for the Corporate Disputes "Quarterly Disputes Barometer" roundup, which draws on the insights of legal experts to provide a comprehensive overview of the key trends shaping international arbitration, litigation and mediation.
"We are seeing a sharp uptick in disputes driven by geopolitical trade realignment, particularly under Trump 2.0's aggressive tariff and energy agenda," Jonathan said. "Companies are facing challenges posed by disrupted global supply chains, aggressive trade measures, as well as cancelled or paused subsidies – jeopardizing performance under existing contracts and sparking renegotiations, force majeure claims and potential termination."
Lim added that legal teams must remain vigilant as US policy continues to evolve. "Legal teams at multinationals should closely monitor developments in US export controls, which are likely to be an expanding area for regulatory and enforcement action under Trump 2.0, particularly in light of the bipartisan focus on strategic competition with China," he said. "This is a still-evolving area, but the Trump administration has given many indications that it is likely to dramatically expand the Biden administration's 'small yard, high fence' approach. It is difficult to say what this will look like at this stage, but it is likely that the Trump administration will adopt more aggressive restrictions on economic engagement with China by players in the US and third countries."
"Multinationals need to proactively assess risks relating to their role in critical technology supply chains and their role in critical technology supply chains and ensure that there are robust compliance frameworks with sufficient flexibility to adapt swiftly to policy and enforcement shifts," Lim noted.
Lim also discussed investor protections and treaty challenges, as shifting political and economic priorities are prompting governments to revise investment frameworks, leading to a rise in investor-state conflicts. "We have seen potential investor-state claims start to surface, particularly from investors affected by green investment incentive rollbacks," Lim said. "General counsel may underestimate how swiftly political shifts can trigger contractual and treaty-based disputes with significant commercial exposure."
Corporate Disputes' "Quarterly Disputes Barometer"
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
