Effects Doctrine

Effects doctrine in Global Commerce Policy

In this regard, a definition of this issue is as follows: the principle that a state may have antitrust laws covering conduct outside of its territory if such conduct has an actual or potential effect on commerce within its territory. For example, the 1986 Third Restatement of the Foreign Relations Law of the United States says that any agreement in restraint of United States trade that is made outside of the United States, and any conduct or agreement in restraint of such trade that is carried out predominantly outside of the United States, are subject to the jurisdiction to prescribe of the United States, if a principal purpose of the conduct is to interfere with the commerce of the United States, and the agreement or conduct has some effect on that commerce . The effects doctrine is subject to a test of reasonableness. The entries on trade policy in the Encyclopedia are here. Other jurisdictions, including the European Community, apply a version of the effects doctrine. See also competition policy, extraterritoriality and implementation doctrine.[1]

Effects doctrinein the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Effects doctrine” entry (OAS)

See Also