Foreign Distributor Agreements - Exclusivity Debate

Today Kim sits down with Kathryn Read, an international sales and marketing consultant with over 25 years of experience in emerging markets, including countries in Africa, the Middle East, and Asia, with extensive experience in China. Kathryn works with SMEs, primarily consumer goods companies moving into international markets. In this episode, we’re picking her brain on distributor agreements–something most listeners understand, but we’ll discuss nuances to be aware of. You’ll want to take notes throughout this episode—there’s plenty of detailed information baked in!

First things first: a distributor agreement clarifies the obligations of both parties. Kathryn discusses both the commercial and legal conditions from the commercial perspective and identifies key features you should have in your contract. 

One agreement should not be used in all countries.  Kathryn uses liability as an example, a topic that has more weight in some countries than in others. Listen in to hear Kathryn’s breakdown of what’s important to know based on the legal environment you’re doing business in. And then Kim points out: there’s the law, and then there is how it’s applied. 

Kathryn shares her experience with litigation in a few countries, and points out  why it’s better to avoid. She notes that if you go into court you may just lose the partnership and your access to the market. She goes into how she has handled conflict and resolved difficult negotiations. 

Kathryn and Kim go on to discuss exclusivity in contracts—might we say they have a healthy disagreement about the topic. There are many things to consider when discussing exclusivity in a partnership, and Kim and Kathryn both share their unique perspectives on how it can be approached. It’s worth tuning in to find out their different approaches. They both agree In the end, the contact should be clear and fair to everyone involved. 

Remember, it is always a good idea to consult a legal professional when writing an agreement or contract. The discussion in this podcast does not constitute legal advice. 

Things you’ll learn

1. Agreements vary from country to country. Each country has its own laws and practices, so it’s important to modify your agreements to fit the local environment. 
2. Disagreements between distributors and companies happen. Kathryn goes into how she handles that conflict and how you can resolve difficult negotiations.
3. There are many things to consider when discussing exclusivity in a partnership, and Kim and Kathryn share their unique perspectives on how it can be approached in a way that is beneficial for both parties. 

Links

https://iccwbo.org/

Episode Sponsored By:

Modifi Payment Solutions.
www.modifi.com
Business Payments for Global Commerce
With MODIFI, Sellers get paid instantly, while their Buyers have the option to pay later. Flexibly. Digitally. All over the globe.

Acclime China
https://china.acclime.com/ Corporate Services and full Accounting/CPA/Tax for China

Website: www.intltraderesources.com

Email: intltradepodcast@gmail.com

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.