TWO-WAY STREET

BY NORKA M. SCHELL

As business has become more international in scope, American business officials wish to be represented by law firms capable of advising them concerning laws of foreign countries. To meet these expectations, more U.S. law firms have sought to gain international legal expertise. Some of these firms have formed partnerships and similar affiliations with lawyers from other countries. 

Growing numbers of foreign-based law firms have acquired expertise in the law and practices of jurisdictions foreign to them by hiring locally-licensed lawyers to help advise their clients. Some of these foreign-based law firms either have hired U.S. lawyers or merged with U.S. law firms in order to provide legal advice in matters dependent upon U.S. law.See Laura Pearlman, Global 50, available at http://www.lawjobs.com/surveys/global150.html; Sean Farrel, London Letter, The Long Wait: A Peer. Meanwhile, Their U.S. Strategies Are A Muddle, THE AMERICAN LAWYER (Nov. 2000), available at WESTLAW, 11/2000 AMLAW.61.

Rhonda McMillion, an editor of ABA, wrote in January 2011 ABA JOURNAL, "ABA urges Obama administration to ask India to ease restrictions on foreign lawyers. It is urging the Federal Government to take steps to ensure that U.S. lawyers have appropriate access to the legal services markets of its key trade partners.

The ABA's effort is another nod to the growing impact of globalization. A global economy is making it increasingly important for U.S. lawyers to be able to give advice and other assistance to clients around the world.

ABA President Stephen N. Zack recently focused on the importance of access to American lawyers to clients in India, the 14th-largest trading partner with the United States. Zack outlined the issue in a Nov. 3 letter to President Barack Obama and urged him to raise it during his trip to India, which began Nov. 6. Zack said the provision of legal services is critical to increasing  the level of trade between the United States and India. "Such services of lawyer well-versed not only in the laws of the United States and India by also cross-border transactional matters are plainly essential for such increase."

India, for its part, has sent conflicting signals on its willingness to accept foreign lawyers. In March, the United States and India signed the Framework for Cooperation on Trade and Investment to strengthen bilateral cooperation and build on  the rapidly growing  trade between the two countries, which has doubled in the past five years. The framework includes the launch of an initiative called Integrating U.S. and Indian Small Business into the Global Supply Chain, intended to expand trade and job creation for U.S. and Indian companies.

In September, however, the Bar Council of India announced that it had decided not to permit foreign lawyers in the country; although the decision is still under final study. In addition, a private Indian lawyer has filed a lawsuit in the High Court of Madras seeking to restrict travel to India by foreign lawyers for purposes of giving advice about their domestic laws to Indian clients or advising clients from their own countries about doing business in India (It does sound familiar.)

Zack requests that President Obama urge the Indian government to adopt a rule similar to the ABA's Model Rule for Licensing and Practice by Foreign Legal Consultants, which has been adopted by more than 30 U.S. jurisdictions.

The ABA's Model Rule for Licensing and Practice by Foreign Legal Consultant allows a licensed lawyer from outside the U.S. to maintain an office in this country (U.S.) after registering with the local bar or court. This allows the lawyer to advise clients about the law of their home country without passing any state bar exams in the United States. The ABA supports principals under which U.S. lawyers may secure the right to practice from offices abroad..."

It is ethically permissible for a foreign lawyer to practice in the United States and for U.S. lawyers to  form partnerships or other entities to practice law in which foreign lawyers are partners or owners. As the Congress considers other free trade agreements with other countries, the ABA will continue to promote enhanced foreign market access to U.S. lawyers. See Governmental Affairs Office publication.