HOUSE OF LORDS
PROTECTION OF TRADING INTERESTS BILL
DEPARTMENT OF TRADE
NOTES ON CLAUSES
CLAUSE 1
1. This clause replaces and extends Section 1 of the Shipping Contracts
and Commercial Documents Act 1964 (which applies only to shipping matters).
It provides a number of means by which the Secretary of State may counter
measures which are taken by or under the law of overseas countries for
regulating or controlling international trade and which in so far as they
apply to things done outside the territory of the country in question are
or would be damaging to the trading interests of the United Kingdom. The
occasion to use such powers will arise in circumstances where the United
Kingdom has a right to afford protection to the persons or companies con-
cerned but where the overseas country claims jurisdiction either in cir-
cumstances where in the view of the UK it has no right to do so or where
there are overlapping or concurrent rights to assert jurisdiction.
Dep-
ending on the circumstances of the case, the United Kingdom may reject the
claim by the overseas country to jurisdiction or it may accept the exis-
tence of concurrent jurisdiction. An example of the former approach is
where an overseas country claims jurisdiction over the internal regulation
of companies incorporated in the United Kingdom by virtue of financial or
controlling interests being located in that overseas country (cf the US
Export Administration Act). An example of the latter case, involving con- current jurisdiction, is shipping where problems have arisen because of per-
sistent US attempts to impose unilaterally their legislation on North
Atlantic shipping lines operating between the USA and several European
ports.