The Effect on International Trade in an Economic Downturn

(Metropolitan Corporate Counsel)

The Editor interviews David A. Hartquist , Chairman of the International Trade and Customs practice group of Kelley Drye & Warren LLP.

Editor: As Chairman of the International Trade and Customs practice group of Kelley Drye & Warren, how are the current economic conditions affecting your practice area and your clients involved in international trade?

Hartquist: We are very busy, and I expect that during the course of 2009 we'll become even busier. One of the things that happens during an economic downturn is that as competition for diminished sales increases, concern about fair play in the marketplace also intensifies. So many of our clients are asking us to look into dumping and subsidization situations to determine whether actions should be taken to deal with these kinds of unfair trade practices.

Editor: Are you finding concrete evidence that this is the case?

Hartquist: Yes, it's very widespread in affecting both our traditional and new clients.

Editor: What effect will the economic stimulus legislation have on your clients?

Hartquist: We think a significant effect, in part because many of our clients are in basic industries, such as steel and the copper and brass industry. We worked very hard on the so-called "Buy America" provisions in the recent legislation passed by Congress. Potentially, we think there's going to be a considerable amount of business to be generated for American manufacturers under this legislation, given the wide array of projects, and numerous federal and state agencies involved along with local governments. Infrastructure work will involve a large portion of our manufacturing capacity.

Read the complete interview here.