A/HRC/39/54 Secondary sanctions and the issue of extraterritoriality 35. As outlined by the Special Rapporteur in his previous report to the Human Rights Council, there is a general understanding that extraterritorial sanctions disregard commonly accepted rules governing the jurisdiction of States under international law and consequently that such measures are unlawful (see A/HRC/36/44, paras. 22–24). The recent imposition of further wide-scale secondary sanctions purporting to apply to third parties not concerned with the dispute has attracted widespread condemnation from the overwhelming majority of the international community. The European Union, in particular, once again voiced its condemnation of extraterritorial coercive measures on the occasion of the repudiation of the Joint Comprehensive Plan of Action by the United States in May 2018. As it explained: “Some of the measures which the United States will reactivate against Iran have extraterritorial effects and, in so far as they unduly affect the interests of natural and legal persons established in the Union and engaging in trade and/or the movement of capital and related commercial activities between the Union and Iran, they violate international law and impede the attainment of the Union’s objectives.”36 36. In the European Union, a range of extraterritorial measures are already subject to Council regulation No. 2271/96, which was adopted in reaction to the adoption by the United States of restrictive measures concerning Cuba, the Islamic Republic of Iran and Libya. That negatively affected the interests of natural and legal persons in the Union engaging in business with those countries, which was perfectly legitimate under European Community law.37 The regulation basically provides protection against, and counteracts the effects of, the extraterritorial application of the sanctions measures covered, “where such application affects the interests of persons … engaging in international trade and/or the movement of capital and related commercial activities between the Community and third countries”. 38 Persons and entities, as defined in article 11 of Council regulation No. 2271/96, shall not comply, “whether directly or through a subsidiary or other intermediary person, actively or by deliberate omission, with any requirement or prohibition, including requests of foreign courts, based on or resulting, directly or indirectly, from the [sanctions covered] or from actions based thereon or resulting therefrom”.39 Moreover, the regulation provides that “No judgment of a court or tribunal and no decision of an administrative authority located outside the Community giving effect, directly or indirectly, to the [sanctions covered] or to actions based thereon or resulting therefrom, shall be recognized or be enforceable in any manner”.40 37. Following unanimous backing on 16 May 2018 by European Union Heads of State or Government, on 18 May 2018 the European Commission launched a process to expand the scope of Council regulation No. 2271/96 by adding to it the extraterritorial measures which the United States were going to impose on the Islamic Republic of Iran. 41 The Special Rapporteur stresses that the unlawfulness of those extraterritorial measures stems also from their egregious and undiscriminating adverse human rights consequences, and expresses his hope that the European Union will engage with the United Nations and in particular with other Member States and with his mandate to address the immediate adverse human rights impact of secondary sanctions and blockades, and support the rapid finalization and adoption of guidelines in that respect, as suggested in the present report. Issues of discrimination 38. There is a strong legal argument to the effect that sanctions may have a discriminating effect on the basis of the country of residence or nationality of the targeted 36 37 38 39 40 41 12 See European Commission, explanatory memorandum on the draft Commission delegated regulation of 6.6.2018 amending the annex to Council regulation No. 2271/96 of 22 November 1996 protecting against the effects of extra-territorial application of legislation adopted by a third country, and actions based thereon or resulting therefrom, para. 1. Ibid. Council regulation (EC) No. 2271/96, art. 1. Ibid., art. 5. Ibid., art. 4. Ibid., para. 1.