Companies Concerned About US Use of Export Controls, Sanctions, Trade Lawyer Says

Companies are concerned about the “heavy-handed use” of export controls and sanctions by the Trump administration, which could lead to a less interconnected global trade order, said Babak Hoghooghi, a trade lawyer specializing in sanctions and export controls at Berliner Corcoran. Hoghooghi, speaking during an Oct. 18 panel hosted by American University's Administrative Law Review. He said the U.S.’s “overuse” of sanctions prompts other countries to consider decoupling from global economies and seek long-term workarounds to U.S. policies. Other trade experts have warned of similar consequences (see 1908010020). “I would venture to say that this process has already begun,” Hoghooghi said.

Hoghooghi said U.S. export controls can be an effective foreign policy tool, such as the Commerce Department’s restrictions against Chinese tech giant Huawei, while also severely hurting domestic industries. Hoghooghi said “many” of his clients are part of Huawei’s supply chain, and the listing has been “hugely destructive.”

“If you go to U.S. companies, multinational companies, they are concerned about the ramifications of heavy-handed use of government policy and some of the unintended consequences from time to time,” he said. Eventually, Hoghooghi said, the administration's heavy use of sanctions and export controls could damage U.S. global leadership.

“U.S. dominance will continue for the foreseeable future, however, with respect to technology or trade generally, I think it may be prudent for our policymakers to be more judicious in their use of export controls and sanctions as foreign policy, mindful of possible long-term consequences,” he said.