America’s Hegemony: Long-Arm Jurisdiction A Threat to The Global Order

By Alan Collins Mpewo

Since the days of past, there has been shifts in the wheels of world influence. Political history has a great deal of documentation on that subject, on the people that dominated the lands from the far East where the sun rises, to the furthest points where it sets. To-date, the concept is still a complicated phenomenon to unmask and understand all that lies misunderstood and/or unknown. World Super Power status – its benefits (now and beyond) are well established and linger in many people’s minds. No doubts about that. Superiority comes in different forms; military might, economic superiority, ideological edge, and other forms, simple and complex alike. Societies in their organisations are tasked to overcome or embrace the power struggles that come at them, but while at it, the weak always stand on high alert in the shifts of the power wheel.

Equally, presently, there is such struggles like in the noted days of past. The notable West and
East settlers are always to be seen unstable due to the cunning acts of each other, but luckily, the world keeps watch. This guides in making personal opinions on when mishaps arise. This article, is that kind of opinion.

Rhetorically, while some notable world superpowers claim checking on the offending nations,
who checks on those superpowers when they go rogue?! International Law was borne out of the excesses of the world inhabitants to establish a neutral system of checks and balances to ensure civility in international relations. The equilibrium has often had its challenges most of which could have been avoided if only the orchestrators objectively pondered on them and took count of the regrettable consequences similar actions have created. With such fairly modest introduction, there’s a glaring discussion that many are yet to realize. United States of America’s so-called long arm jurisdiction! In the most precise definition, is the exercise of judicial power by domestic courts of judicature, over defendants or accused persons outside that country or jurisdiction. This can be premised on an existent law or by court’s own motion while exercising its “inherent powers.” The judgement passed thereafter will have a binding effect as though the condemned was a national of that country.

While other countries have since conception of the International Law ideals adopted the
extradition concept, USA has been at the forefront of championing and in equal measure
exercised wanton authority over other independent nations, in the context of the juridical realm. A crisis has been sparked as a consequence and it’s sucking the foundations of international law. The USA, a forefront runner on rule of law domestically and otherwise, has mastered the art of elite punching down on numerous countries, economically, politically, and as earlier noted judicially. Sanctions don’t have a better alternative tag than the USA, but at the center of the complexity, while one arm is raised in symbol of territorial respect, another pens unfortunate statutes.

The long arm jurisdiction has a significant track with a wide range of statutes as the years faded and gave way for new ones, such as Foreign Corrupt Practices Act, Trading with the Enemy Act, Countering America’s Adversaries Through Sanctions Act, National Defense Authorization Act, and many more alike, all having long-arm jurisdiction clauses. In the same spirit, presidential executive orders with similar clauses have become ordinary practice from the country that dares to scold her global sisters when they threaten the sovereignty of others. The tentacles of USA’s long-arm jurisdiction have reached China, Japan, Cuba, Venezuela, Syria, Libya, Zimbabwe, Iran, among many more. To tabulate a list of all those that have come off as victims would preempt the limited space for more thoughts. Sadly, the in almost all cases, the effects of America’s long-arm jurisdiction have crippled victim countries capacities to protect and serve their citizens causing untold suffering and death at times. For example, U.S based Brooking Institute estimated that more than 13,000 Iranians died of Covid19 in Iran alone which as a result of U.S’ sanctions under long arm jurisdiction!

This article in the commencement kick-started with a rhetorical question, who checks on the
USA?! Who stands to sanction it? To issue guidelines and directions on how to run its internal
processes of governance? How many countries issue statutes in exercise of the long-arm
jurisdiction over its nationals? For all excesses, should come checks. The equilibrium should be found in rethinking and embracing decades of tested principles such as mutual respect for all global players as China earlier realized. There’s enough room for all that tread this rocky planet without unnecessary stir of antagonisms. It goes without a doubt that global policing has its undebatable advantages, but that should be done alive to the realities that have been key at pacing steadfast global relations.

About 78 years after the decision in International Shoe Co. v. Washington by the US Supreme
Court, with the constant reforms since then, it should have been noticeable of the dangers of the long-arm jurisdiction principle by its proponents. The hegemony by USA has maintained a reputation of disregard of territorial observance and respect. As time grows, there could be more backlash than is being witnessed in recent times. Otherwise, with decades of stifling trades that side with the US, alliances that don't lean towards US’s directions, and lack of impartiality while acting as a global police, have reached a prime for disregard by other global actors. The U.S should be reminded that in modern era, unilateralism is the best form of dictatorship and goes against principles of democracy. Put differently, it is a disguised form of colonialism and promotes unfairness and protectionism.

Indeed, a 2022 study by U.S based CATO Institute concluded that, Trump administration used long-arm jurisdiction’s section 301 to unfairly target China with trade tariffs. CATO institute further revealed that section 301 the U.S uses to target foreign companies is unfair stressing that it “grants the executive branch far too much discretion in defining an actionable foreign trade practice” leaving possibility of being exploited for political reasons since it gives the President of the U.S to safeguard what Washington may consider America’s trade interests by remedying any “act, policy, or practice of a foreign country [that] is unreasonable or discriminatory and burdens or restricts United States commerce.” For example, long-arm jurisdiction defines “unreasonable” in a skewed manner calling it “otherwise unfair and inequitable.” This gives the U.S and particularly the President unchecked power when dealing with foreign countries Washington may consider competitors and hence, giving the U.S liberty to block fair competition using their so-called long-arm jurisdiction.

Alan Collins Mpewo is a Senior Research Fellow, Development Watch Centre.

America’s Long-Arm Jurisdiction Threatens Sovereignty and Human Rights

America’s Long-Arm Jurisdiction Threatens Sovereignty and Human Rights  

By Allawi Ssemanda

For decades, the U.S has on numerous occasions unilaterally announced sanctions targeting foreign companies involved in trade Washington deem against their interests through the so-called long-arm jurisdiction. Long-arm jurisdiction refers to jurisdiction over persons or entities domiciled or resident outside the territory of the sanctioning state.

It was unilaterally established after a case of International Shoe Co. v. State of Washington (1945) in the U.S Supreme Court. This means that, it is largely in interest of the U.S.

This law is unacceptable in present global order. For example, on a simple basis that the defendant has what American authorities consider to be some “minimum contacts” with the state, under the long-arm jurisdiction, U.S state courts are allowed to exercise in personam jurisdiction in civil and commercial cases including where jurisdiction cannot be exercised. It is not a surprise that it has been largely used by the U.S to “punish” countries and companies’ world over the U.S considers to be impeding America’s interests.

Secondly, going by international laws, the exercise of a country’s jurisdiction over an extraterritorial person or entity generally requires that the person or entity or its conduct has a real and sufficient connection to that country. Yet the U.S. exercises long-arm jurisdiction on the basis of the “minimum contacts” rule, constantly lowering the threshold for application. The law is very unfair and gives American judicial system unchecked powers to go after foreign individuals and companies which we have no guarantee that it cannot be abused because of politics. For example, a mere use of the U.S dollar for financial services or using U.S mail services is considered to constitute the so-called “minimum contacts.”

Indeed, during Trump Administration, the U.S used long-arm jurisdiction to unfairly target China with endless unfair tariffs against Chinese products, an act some analysists argue was meant to promote unfair competition in favour of American companies.

A study by the Cato Institute, an American libertarian think tank found that the U.S used long-arm jurisdiction in violations of World Trade Organisation (WTO) and the U.S laws as Executive ignored Congress role. The study further revealed that while Chinese firms were most affected, even American’s citizens were affected as China responded to Trump administrations trade tariffs. The study entitled “Unfair Trade or Unfair Protection? The Evolution and Abuse of Section 301” argues that section 301 of long-arm jurisdiction “grants the executive branch far too much discretion in defining an actionable foreign trade practice” which may be exploited for political reasons – it allows American President to safeguard America’s trade interests by remedying any “act, policy, or practice of a foreign country [that] is unreasonable or discriminatory and burdens or restricts United States commerce.” Important to note is that the same law defines “unreasonable” in very ambiguous manner simply calling it “otherwise unfair and inequitable.”

All the above puts the U.S at advantage over other countries, potentially making the rest inevitable victims should American politician(s) feel that a foreign company is putting a stiff competition against American(s), such foreign companies or individuals can easily be sanctioned by America and tactfully kicked out of business.

As Alan Sykes, a Law professor at Stanford University argued, the choice of words used in long-arm jurisdiction “Section 301 can encompass virtually any foreign government practice unilaterally deemed objectionable by the U.S.” This has huge potential to facilitate political opportunism and harmful outcomes where the U.S can freely target other competing countries.

More worrying, the U.S keeps making the use of its unfair long-arm jurisdiction purposefully wide. It has developed the so-called “effects doctrine,” meaning that jurisdiction may be exercised whenever an act occurring abroad produces “effects” in the U.S regardless of whether the actor has U.S citizenship or residency, and regardless of whether the act complies with the law of the place where it occurred!

Because politics makes players selfish, it is perhaps the right time countries globally call on the U.S to abandon laws that antagonise global trade, order and peaceful co-existence as well as free and fair competition. This is because, whether you’re U.S’ adversary or ally, individual or a foreign company, provided you’re not American or fully serving their interests, we are all candidates of this unchecked long-arm jurisdiction.

Today, the U.S has come up with different legislations which are meant to advance the long-arm jurisdiction which has potential to harm interest of foreign countries. Other legislations that have been made to further strengthen long-arm jurisdiction among others include Trading with the Enemy Act, International Emergency Economic Powers Act, and Countering America’s Adversaries Through Sanctions Act.

Despite favouring the U.S, such legislations also in the long run hurt America(ns) and have potential to disrupt global chain supply and international trade. For example, despite Trump Administration targeting China, actions of Section 301 strained relations between Washington and the European Union as Trump administration twice targeted the EU using the same section.

European Union has been opposing Section 301 arguing it is inconsistent with the rules of the WTO which prompted EU to challenge it at the WTO which ruled in EU’s favour.

While tensions as a result of U.S’ tariffs which EU called illegal ended after the Biden administration negotiated a mutual cease-fire, this did not result into total termination of the offending subsidy programs in the Airbus‐​Boeing case. Whilst the Biden argues that it is Trump administration that misused section 301 of long-arm jurisdiction, Biden administration which came promising to embrace globalism seems reluctant to move away from Trump-era section 301 and appears to be in agreement with the Trump era’s America first with reports that his administration is now considering a new Section 301 case against China.  Indeed, recent reports consistently shows U.S courting Japan and the Netherlands to restrict China from accessing semiconductor manufacturing equipment.

In conclusion, as the famous Martin Niemöller would warn in his “first they came for Communists and I did not speak out because I was not a Communist.,” those who believe in fairness should stand up against America’s long-arm jurisdiction now before it is too late to have anyone to speak for us. The jurisdiction is a thing of past and is akin to colonialism. The practice is not only a major way of violating fundamental rights but has in many instances resulted into suffering and death of people. For example, as a result of the so-called long-arm jurisdiction, the U.S imposed sanctions on countries like Afghanistan, Iran, Syria and Yemen among others. U.S based Brooking Institute estimated that as a result of American sanctions, affected countries lost abilities to effectively contain COVID-19 pandemic. In Iran alone, over13,000 people died from the COVID-19 pandemic which was worsened by U.S sanctions.

Allawi Ssemanda, PhD is a Senior Research Fellow at the Development Watch Centre.

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