On 22 November 1996, the Council of the European Union adopted a framework regulation and agreed to joint action to ‘protect’ the interests of the European Union and its citizens against the extraterritorial application of legislation by non-member states. These measures were adopted in response to the extraterritorial application of certain measures by the United States, concerning trade with and investment in Cuba, as well as investment in Iran and Libya. These United States measures apply to all natural and legal persons irrespective of their nationality, residency, or place of activity. Thus, even nationals of a member state of the European Union residing and active in the European Union must comply with the United States measures. The enactment of this legislation marks a new episode in the on-going battle between the United States and the European Union over the frontiers of a state's (or an international organization's) jurisdiction to prescribe. This time, however, the European Union counteracted by the adoption of measures which can partly be characterized as retorsion measures and partly as countermeasures. The adoption of these measures by the European Union raises questions with respect to the legitimacy of the retorsion measures and the legality of the countermeasures.