The Effects Of Unilateral Trade Sanctions On Contract For The International Sales Of Goods

Unilateral trade sanctions, as one of the political tools of coercion, means one state or The European Union(“EU”) as an entirety(the “sanctioning state”) implements embargo and restrictions on the import and export of another state(the “target state”). By implementing restrictions on export markets and critical imports, the sanctioning state exerts pressure on the target state to deter it from engaging in activities in breach of its international obligations or to induce it to redress certain aspects of its domestic or foreign policy. In recent years, with the acceleration of economic globalization development, Unilateral trade sanctions’ affectionexpands fromsanctioning state and target state to a third country, which called “extraterritorial effect”. More and more individuals and companies(“enterprises”) are becoming the target of unilateral trade sanctions because of the contractfor the international sales of goods, once they are prohibited to perform obligations because of the conclusion and performance of the contract which may violate unilateral trade sanctions, disputes will increase correspondingly.This papertitled “The Effects of Unilateral Trade Sanctions on Contract for the International Sales of Goods”, first research the theory of economic sanctions, then gets across the definition and development of unilateral trade sanctions and acquire the reason why unilateral trade sanctions can have a extraterritorial effect. This paper also gives a detailed analysis on the effective source of unilateral trade sanctions from the perspective of conflict of laws and contract laws, try to get the reason why unilateral trade sanctions, as a public law, can affect enterprises from other countries, and whether it can be an excuse of a failure to perform any obligations, which called exemption clauses in United Nations Convention on Contracts for the International Sale of Goods(“CISG”). In the end, this paper sums up some suggestions to our enterprises and government about how to cope with unilateral trade sanctions according to the above research.This paper falls into four chapters.Exordium first introduces the topics of theoretical and practical significance, and analyzing the concept of unilateral trade sanctions on the basis of economic sanctions. Then concludes the basic study perspectives related to this topic. Finally presents the researchmethods, paper structure and innovation and deficiency of this paper.Chapter I first introduce the definition of unilateral trade sanctions base on the related theory of economic sanctions and give a simple research on its development, to lay the foundation for the following research. In addition, give a clear definition of the contract for the international sales of goods in this paper.In the end try to figure out why contract in our country will be easilyinfluenced by unilateral trade sanctions.Chapter II starts from the existing effective dispute of unilateral trade sanctions, learn the attitude of American and EU about this question. Then analyzes the reasons why unilateral trade sanctions can affect the performance of the contract and sums up the different types of reasons from the perspective of conflict of laws.Chapter III first give a research on theexemption clauses in CISG when either party fails to perform his obligationsdue to an impediment beyond his control(“exemption clauses”), namely Article 79, analyzing the range of application、exemption requirements and legal consequences of exemption clauses. Then compares the unilateral trade sanctions with theexemption clauses, to learn whether unilateral trade sanctions can be an excuse of afailure to perform any obligations. Finally summarizes the rights and obligations of two parties.Chapter IV simply summarizes the conclusions of the above two chapters and give some suggestions to our enterprises and government on how to cope with unilateral trade sanctions. Author thinks our enterprises should learn how to use sanction clause to reduce the damage of unilateral trade sanctions and be carefully when concludes a contract; at the same time, government should make some blocking statutes and find the right way to use the unilateral trade sanctions to protect our economic interests and national interests.