Most trade between friendly nations, particularly those
who operate within the multilaterally agreed rules of the World
Trade Organisation (WTO) and other relevant international
agreements, proceeds smoothly. However, disputes do arise, and
they fall into three main categories: (i) Conflicts of policy between
sovereign governments which then have an impact on their mutual
trade and investment; (ii) Disputes over practical trade actions
which are initiated by governments, or get escalated to the
intergovernmental level; and (iii) Disputes over the proper
application to trade of internationally agreed standards in broader
policy areas like environmental protection or labour conditions. All
such disputes require diplomatic intervention, sometimes by
generalist diplomats, but most often by technical trade specialists.
Sometime ago, the most visible trade-related dispute was
that between the United States Government and BP over the
disastrous Macondo oil leak in the Gulf of Mexico. However, this
is not a typical case. The principal company involved happens to be
UK-based (though BP has almost as many US shareholders as
British), but a similar disaster could occur at any time to a US-based
operator. No intergovernmental differences of substance are at stake
— the British Government became involved only indirectly, and
because of the knock-on effects which the costs of this accident will
have on BP shareholders and on pension funds in the UK.
Michael Johnson. The impact of political and diplomatic disputes on
international business activity. Internet: <www.ibde.org> (adapted).