Define and discuss the doctrine of "sovereign immunity." Discuss how the Foreign Sovereign Immunities Act of 1976 has codified this area of law. Give examples of how the Act works

Answer 1

In order to maintain international relations and trade, a host country must refrain from imposing its laws on a foreign sovereign nation present within its borders. This absolute immunity from the courts of a host country is known as "sovereign immunity." Originally, all acts of a foreign sovereign nation within a host country were considered immune from the host country's laws. In modern times, however, international law distinguishes between a foreign nation's public acts and its commercial ones. Only public acts will be granted sovereign immunity. Engaging in trade or commercial activities subjects a foreign nation to the jurisdiction of its host country's courts with respect to any disputes that arise out of those commercial activities. The 1976 Act established exactly the circumstances under which the U.S. would extend immunity to foreign nations. Examples of commercial activities include a contract by a foreign government to buy provisions for its armed forces or a foreign government's borrowing of money. Examples of public (noncommercial) activities to which sovereign immunity would extend include nationalizing a corporation and the granting of licenses to export a natural resource.