Countering extraterritorial sanctions

Purpose The purpose of this paper is to analyze how States may counter economic sanctions in line with international law, using the European Union’s (EU) evolving approach as an illustration. After elaborating on the concept of economic sanctions and their political and economic background, this study addresses their legality under international law. On this basis, this paper reflects on the two main EU measures to counter extraterritorial sanctions: the blocking statute and countermeasures. Design/methodology/approach Methodologically, this paper combines doctrinal analysis with research from political science and economics. Findings This paper finds that blocking statutes represent a more cautious approach, whereas countermeasures constitute a more assertive reaction to extraterritorial sanctions. However, both measures remain second-best options in the absence of a compulsory global international dispute settlement system. Originality/value This paper contributes to the literature by offering a novel comparison of blocking statutes and countermeasures.