On June 5, 2025, The Center for American and International Law (CAIL) hosted a virtual program titled Economic Coercion and the Rule of Law, exploring how economic pressure is reshaping sovereign decision-making—and the legal consequences that follow. Part of CAIL’s Promoting the Rule of Law webinar series, the panel offered a timely and rigorous examination of coercive economic tools, their effectiveness in achieving policy goals, and the legal ramifications for impacted nations, companies, and individuals.
The conversation was moderated by Alison FitzGerald, Partner at Bennett Jones, and featured an internationally respected panel of legal scholars:
- Professor Kathleen Claussen, Anne Fleming Research Professor, Georgetown University Law Center
- Professor Patrick Leblond, CN-Paul M. Tellier Chair on Business and Public Policy, University of Ottawa
- Professor Federico Ortino, Professor of International Economic Law, King’s College London
Panelists explored the use of sanctions, tariffs, investment restrictions, and other economic measures as instruments of statecraft—and whether international law is equipped to regulate their growing use.
Top 5 Takeaways from the Discussion
The speakers shared their perspectives on the topic, including these observations:
- No Clear Definition—But Widespread Use - Economic coercion remains legally undefined under international law, yet it is increasingly used by states to influence or compel foreign policy behavior. Panelists distinguished between economic “pressure” and “coercion,” noting that coercion often seeks to undermine a target state’s sovereignty through punitive or restrictive measures.
- America First and the New Normal - While the U.S. has long used economic tools in foreign policy, recent years have marked a shift in scope and unpredictability. Professor Claussen explained how many tools now deployed under the “America First” banner were originally designed to defend against economic threats, but are now being used aggressively to shape trade relationships and extract concessions.
- Uncertainty as Strategy - The volatility of current economic policy, particularly from the U.S., has created what was described as an “uncertainty tax.” Businesses and states are increasingly burdened by shifting rules, short-term reversals, and ambiguous long-term goals—forcing them to hedge or adapt in ways that may erode trust in international legal frameworks.
- Retaliation Over Resolution - With traditional legal avenues like the WTO dispute system weakened, countries are relying more on retaliatory measures and political negotiation. The EU’s Anti-Coercion Instrument was discussed as a notable example of institutional response—but questions remain about the legality and effectiveness of such tools under current international law.
- Pressure on the Rule of Law Itself - Beyond economic impact, the rise of coercive trade practices is testing the boundaries of international law. Panelists questioned whether the current system can survive in its present form, or whether the erosion of consensus around legal norms will give way to a more fragmented, power-based global order.
Watch the full conversation below:
About the Promoting the Rule of Law Webinar Series
Launched in 2022, the Promoting the Rule of Law webinar series is part of CAIL’s commitment to advancing justice through education and dialogue on critical legal and law enforcement issues. The series serves as a platform for discussion among informed scholars, jurists, and practitioners on matters of broad public and professional significance.
The views expressed are those of the speakers and do not necessarily indicate the views of their employers, clients, or any organization.