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Why allowing everything in England helps international business

It’s not often that I meet representatives of a British Company in the morning and read in the afternoon that they are contributing to UK economic success.

So I’m intrigued here in Istanbul to meet leading law firm DLA Piper – one of several which have established substantial operations in Turkey – and to read later in the day that business services – which includes the legal sector – is one of the highest performing parts of the UK economy.

Indeed, I read the same evening that following reports that UK GDP grew by 1% in the third quarter of 2012, the Centre for Economics and Business Research (CEBR) has forecast that the UK could grow faster than any of the major Eurozone economies in 2013 and 2014.

The English legal system has many attractions for international business.  The English legal system has centuries of history and precedent and is widely viewed as fair, objective and flexible.

It is often stated that English law is the law of compromise.

In contrast to some jurisdictions where everything is forbidden unless specifically allowed by law (I remember in a certain European country once seeing a sign in a park announcing “tricycle riding permitted”), in England everything is allowed unless it is forbidden by law.

This makes contracts drawn up under English law attractive to international businesses operating around the world as it allows the true commercial intent of the parties to be reflected. For example, English law was selected as the most convenient legal system for a contract governing a recent major construction deal involving a Turkish company in Rwanda. The application of English law can therefore give an advantage to international consultancies which provide English legal services in third countries. It’s all part of a system which includes the courts themselves and one of the world’s best-developed systems of international arbitration and dispute resolution.

You can find out more about UK financial and professional services from the excellent organisation, TheCityUK.

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