Over the years, the UK and the USA have become close trading partners. United by shared values, language and customs, many British and American businesses have forged closer ties, particularly in the supply chain and the logistics sector. With reshoring also gaining ground of late, UK companies have seen additional benefits in doing business with US suppliers, benefits that often include competitive pricing, guaranteed quality, economic scale and a supply chain that is stable and secure.
Yet supply chain relationships with US companies are not without unique concerns. Should the supply chain be disrupted for whatever reason, UK companies more used to doing business with other UK or EU suppliers could face disputes that bring unfamiliar legal issues or challenges. In addition, there are many individual points of law in standard supply chain contracts and agreements that differ significantly between the UK and the USA. Being aware of these from the start of a new supply or logistics relationship is a simple but effective way to avoid complications later on.
This article addresses the most important legal issues of which UK companies, considering a US supply chain relationship, should be aware.