EU support sought against extra-territorial application of US law

Maria Livanos Cattaui: "The growing number of cases filed in US courts is causing great anxiety to European business and has already inflicted significant litigation costs on many EU companies."

Paris, 27 October 2003 -- The International Chamber of Commerce wants the EU to exert pressure on the United States government to stop EU companies from being sued in US courts over alleged human rights violations and other offences outside the United States.

In a letter to EU Commission President Romano Prodi, ICC Secretary General Maria Livanos Cattaui said the practice of suing domestic or foreign companies in the US under the Alien Tort Statute of 1789 for alleged events in third countries was "an unacceptable extraterritorial extension of US jurisdiction".

She told Mr Prodi: "I ask you to add your voice to those of European governments to encourage the United States Government to continue its efforts to stop the abusive use of this ancient statute against EU companies."

Ms Cattaui continued: "The growing number of cases filed in US courts is causing great anxiety to European business and has already inflicted significant litigation costs on many EU companies."

She said it should be made clear to US authorities that the practice could result in reduced investment by EU companies in the US, or in third countries, if they were to be exposed to the Alien Tort Statute.

Ms Cattaui noted that Washington has already taken steps to protect US and foreign companies from the threat posed by the Alien Tort Statute. She added: "The flood of litigation stemming from the misuse of the Alien Tort Statute is causing great harm to international business and should be halted."

ICC letter to Mr Prodi