This regulation empowers the U.S. administration to adopt response measures, which may include the imposition of tariffs, diplomatic actions and legal assistance, all in order to mitigate the impact of sanctions that are deemed arbitrary and to reestablish the commercial and legal balance.
From a national perspective, this executive order could generate effects in Chile in situations where subsidiaries of U.S. companies are subject to sanctions imposed by regulatory agencies, such as the National Economic Prosecutor’s Office (FNE) or the Court for the Defense of Free Competition (TDLC).
Under Chilean law, antitrust investigations and sanctions must be based on objective criteria, respecting the principle of legality and guaranteeing equality before the law. However, if in a sanctioning procedure a U.S. subsidiary receives a fine considered excessive or a perceived differential treatment with respect to other companies in similar circumstances, this executive order could be invoked by the U.S. government as an argument to apply commercial or diplomatic retaliation against Chile.
In the area of foreign investment, this regulation could also generate a new risk factor for multinational companies operating in Chile, to the extent that their U.S. parent companies could consider that local regulatory decisions affect their interests and activate protection mechanisms by their country of origin.
Main provisions of the executive order
The regulation contemplates the following protection measures for U.S. companies:
- Tariffs and trade measures: The U.S. may impose tariffs or trade restrictions on goods and services from countries that impose sanctions deemed unfair to U.S. companies.
- Diplomatic Actions: Diplomatic measures may be taken against governments that engage in discriminatory or disproportionate practices against U.S. companies.
- Legal support: The possibility of legal assistance from the U.S. government to affected companies is established.
- Financial assistance: The order provides for financial support mechanisms to mitigate the impact of sanctions imposed abroad.
- Retaliatory measures: The U.S. may retaliate against foreign companies with operations in its territory in the event that their countries of origin impose sanctions on U.S. companies.
Although Chilean antitrust legislation seeks to ensure transparent and objective sanctioning processes, the implementation of this executive order could generate tensions at the international level, especially in strategic sectors where subsidiaries of U.S. companies participate.
In this context, it would be relevant to evaluate whether this regulation could influence future regulatory decisions and the design of compliance policies in companies with a presence in Chile.
