Perhaps you can't read words?

Extraterritorial jurisdiction?

You sell stuff to country A, you comply with laws of country A. Which is why USA companies have to take GRPR into account.

You make an illegal model for country A? Can't sell it there.

You wouldn't sell the model, you would sell its outputs. I can legally buy products made by factories in Bangladesh that would violate all sorts of laws if they were operating in the U.S. It will be for international trade agreements to determine.

You mean operate in a legal grey area and shut down when the loophole is closed