Understand how to make that decision for your company that exports products and services

With the advance of the Covid-19 pandemic and the arrival of the new coronavirus to all countries and continents, those working with foreign trade had to revise their international contracts – whether due to logistical, sanitary, productive capacity or even due to buyers’ decision.

At this point, it is important to weigh a number of factors before deciding what to do with foreign trade contracts during the pandemic: maintaining, suspending or terminating contacts?

Product type

The first point to analyze is the type of your product. Is it a product that can be stored until resumed? Is it perishable? Has production been carried out to international specifications?

“Perishable products such as meat, for example, are subject to refrigerated logistics that must be carried out in an agile manner. It is a product that can be lost if it is not transported on time and with all the necessary care ”, explains Anna Bastos, partner at B21 Import & amp; Export, a company specialized in foreign trade.

Destination and logistics

In addition to the type of product, it is important to analyze the export destination, since depending on the country, it will not be possible to arrive due to the current logistical difficulties.

“Depending on the country, it is possible to substitute air transport for road or sea, but it is not a constant. You need to understand if there is logistical availability to meet the export demand of products during the pandemic ”, adds Anna Bastos.

The B21 businesswoman analyzes that the availability of the product in the destination country must also be taken into account. “It is different to talk about exporting olive oil and meat to Portugal”. The degree of dependence of the foreign consumer market on the product means that it becomes essential and the entry barriers are reduced.

Negotiation of the foreign trade contract & nbsp; in Pandemia

In all cases, it is necessary to evaluate what is provided for in the export contract. If there is a force majeure clause, for example, this situation is already foreseen and can be enforced.

If not, a direct negotiation between the parties will be necessary – which will also vary from the relationship between exporter and importer.

If the contract is new, you tend to have a lower level of trust in the relationship. Older contracts tend to be easier to negotiate.

Don’t know how to do it?

Do you have any questions about how to renegotiate your export contracts?

Go to contact us to discuss and review your internationalization plan. When we reach the moment of resumption, foreign trade may be an asset for your company to resume its growth pace.

For foreign trade, during the Covid-19 pandemic, if you haven’t started your internationalization process yet, it’s time to plan.

Internationalization plan

Contact us to create your internationalization plan . When we reach the moment of resumption, foreign trade may be an asset for your company to resume its growth pace.

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