Article in Journal

The Export of Sanction Policies: Extraterritorial Sanctions and Geopolitical Conflict

Eckhard Janeba
CESifo, Munich, 2023

EconPol Forum 24 (3), 15-18
  • The geopolitical rivalry between the US and China may spill over to Europe via extraterritorial sanctions
  • The US-Iran conflict shows that Europe losing access to the US market has been a powerful threat to limit Europe’s trade with Iran
  • US extraterritorial sanctions, seen as a tool to limit Iran’s sponsorship of international terrorism, became more attractive as the US became a energy exporter
  • Countermeasures against extraterritorial sanctions exist but proved largely ineffective in the past
  • European countries need to invest in strategic sovereignty to prepare for a possible fallout from the US-China geopolitical conflict