TNAG-0929-FCO40-1147-Protection-of-Trading-Interests-Bill-extension-to-Dependent--1980 — Page 108

Protection of Trading Interests Bill

EXPLANATORY MEMORANDUM

1. This Bill provides protection for persons in the United King- dom from certain measures taken under the laws of overseas countries when those measures apply to things done outside such countries and their effect would be to damage the trading inter- ests of the United Kingdom, or would be otherwise prejudicial to the sovereignty or security of the United Kingdom. The Bill also provides for the non-enforcement of certain foreign judgments and enables recovery to be made of foreign awards of multiple damages. The Bill repeals the Shipping Contracts and Commer- cial Documents Act 1964.

2. Clause 1 provides a number of means by which the Secre- tary of State may counter measures which are taken or proposed to be taken by or under the law of overseas countries for regulat- ing or controlling international trade, and which are or would be damaging to the trading interests of the United Kingdom. First, he may make orders specifying the measures concerned. Second, he may make further orders requiring persons in the United Kingdom who carry on business there to notify him of any requirements or prohibitions imposed or threatened to be im- posed on them under such measures. Third, he may prohibit compliance with such measures. International trade is widely defined to include any business activity.

3. Clause 2 provides that where a person in the United King- dom has been or may be required to produce to a court, tribunal or authority of an overseas country commercial documents out- side that country or to furnish commercial information the Secretary of State may give directions prohibiting compliance with that requirement. The Clause specifies the circumstances in which a direction may be given, which are broadly comparable to the circumstances in which a United Kingdom court would refuse a request made by an overseas court for evidence under the Evidence (Proceedings in other Jurisdictions) Act 1975.

4. Clause 3 provides penalties for failure to comply with requirements imposed under Clauses 1 and 2. It provides for a maximum fine of £1,000 on summary conviction and for an un- limited fine on conviction on indictment.

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