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Date Submitted: 09/05/2015 10:03 PM
International Chamber of Commerce
The world business organization
Policy Statement
Extraterritoriality and business
Prepared by the Task Force on Extraterritoriality
Introduction
The International Chamber of Commerce (ICC) has prepared this policy statement to urge the
international community and policy-makers, including legislators and regulators, as well as
courts, to focus renewed attention on the negative impact that the extraterritorial application of
national laws has on international commerce. ICC has established a task force to examine this
subject and will issue a more detailed report.
A barrier to cross-border trade and investment
ICC is strongly committed to promoting cross-border investment and trade as indispensable
elements of sustainable economic development and world growth. Clear and predictable rules
of law are essential to achieve these objectives. The increasing globalization of business and
expanding regulation of commerce by states have led to a significant rise in the extraterritorial
application of national laws, with states frequently applying or seeking to apply their laws and
regulations to persons or conduct outside national borders. Although in some instances this
extraterritoriality is an outgrowth of states’ efforts to combat terrorism, crime, corruption,
cartels, and other concerns on a cross-border basis, ICC believes that the extraterritorial
application of national laws and attempts by states to exercise jurisdiction extraterritorially can
and does have significant negative effects on international trade and investment. The
extraterritorial application of national laws frequently subjects companies to conflicting or
overlapping legal requirements, fosters unpredictability, increases the risks involved in
commercial activities, exposes companies to overly burdensome litigation in foreign
jurisdictions, and inflates legal and other transaction costs.
Examples of extraterritoriality...