HC Deb 03 December 1996 vol 286 cc583-4W
Mr. Spring

To ask the President of the Board of Trade when he expects the EC regulation designed to counter assertions of extra-territorial jurisdiction by the United States of America in respect of Cuba, Iran and Libya to be adopted. [7640]

Mr. Nelson

The General Affairs Council on 28 October agreed the text of an EC regulation which is designed to protect against the effects of the extraterritorial application of legislation adopted by a third country. The regulation specifically identifies the US Cuban Liberty and Democratic Solidarity Act 1996 and other legislation relating to Cuba, and the Iran and Libya Sanctions Act 1996. It was adopted on 22 November 1996 and entered into force on 29 November 1996.

The regulation applies to all legal persons incorporated within the Community and to all natural persons resident in the Community whether or not they are EC nationals as well as certain other categories of persons, for example certain shipping companies.

Those covered by the regulation are obliged to inform the European Commission either directly or through their national authorities if their financial and economic interests are directly or indirectly affected by the operation of the foreign legislation in question and they are prohibited from complying with any requirements or prohibitions which may be imposed on them under the legislation. Procedures have been established whereby those affected may seek waivers allowing them to comply in circumstances where non-compliance with the foreign legislation would seriously damage their interests or those of the European Community.

The regulation also provides that judgments given by foreign courts under the specified foreign legislation will not be enforceable within the European Community and that those persons covered by the regulation can recover any damages, including legal costs, caused to them by the application of that legislation or by actions based thereon or resulting therefrom. This recovery may be obtained, anywhere in the European Community where there are assets, from the natural or legal person or any other entity causing the damages or from any person acting on its behalf or from an intermediary.

Member states are obliged to provide for sanctions for breaches of the notification and non-compliance obligations. We shall be proposing an appropriate order to Her Majesty in Council to accomplish this which will then be laid before Parliament.

A joint action commitment agreed in parallel to the regulation commits member states to protect the interests of those natural and legal persons covered by the regulation to the extent that the regulation itself does not do so.