Final answer:
Having the law of the importer's country govern a sales contract can offer legal certainty, reduce legal complexity and costs, and mitigate against protectionist measures. It can result in a more predictable trade environment but must be chosen with consideration of environmental, safety, and security regulations.
Step-by-step explanation:
In a sales contract, the benefit of having the importer's country's law as the governing law can have several advantages. First and foremost, it can provide the importer with a sense of legal certainty and familiarity, especially if the importer is aware that the governing law aligns with their domestic regulation and judicial systems. Additionally, it could offer a strategic advantage in terms of legal recourse, as the importer would operate under laws that they are accustomed to, potentially reducing legal costs and complexity.
Moreover, this arrangement may act as a firebreak against the possible intrusion of protectionist measures that could arise from domestic special interests, fighting off efforts to impose trade barriers. Local governments sometimes implement regulations to protect national interests, including businesses and jobs, which could restrict imports and impact the terms of trade. By aligning the sales contract with the law of the importer's country, both parties may benefit from a more stable and predictable trade environment.
Lastly, it is worth noting that such a choice of law must consider potential concerns. Environmental standards, product safety requirements, and other domestic policies, such as those concerning national security during conflicts, can all play a substantial role in shaping trade regulations and must be carefully assessed when deciding on the governing law in international trade agreements.