Robust trade controls and strong compliance mindsets

The transshipment hubs, to varying degrees, have enacted export controls and trade sanctions laws. Such ports will need to keep these laws current and relevant if they are to continue their critical role in the global trading system. The hubs must continuously update and enhance export controls and sanctions laws and inculcate strong compliance mindsets to prevent WMD proliferation given the huge risk to humanity if WMDs get into wrong hands.

The challenge lies in navigating a shifting global trade landscape:

Diminished multilateral forums: Russia’s invasion of Ukraine has isolated Russia from the West. This in turn has impaired de facto global export control and sanctions rule-setting forums such as the Wassenaar Arrangement (WA) and United Nations Security Council (UNSC). Russia is an important member of both and is able to veto proposals put forth. This effectively renders both forums moribund.
Shift in trade priorities: The nature of trade and security has changed from being primarily focused on WMD non-proliferation to restricting access by great power rivals to strategic technologies and critical resources. This new imperative is evident as the great powers seek to fill the gap left by the WA and UNSC. The US has been more effective than China in this regard and in a number of instances has coordinated with allies to created new plurilateral controls and sanctions aimed at thwarting China’s ambitions in critical technologies, such as semiconductors and emerging technologies such as artificial intelligence. Consequently, the latest rules primarily reflect the interests of the US.