Economic sanctions are not always imposed because of economic circumstances. For example, the United States has imposed economic sanctions against Iran for years, on the basis that the Iranian government sponsors groups who work against US interests.
The United Nations imposed stringent economic sanctions upon Iraq after the first Gulf War, and these were maintained partly as an attempt to make the Iraqi government co-operate with the UN weapons inspectors' monitoring of Iraq's weapons and weapons programs. These sanctions were unusually stringent in that very little in the way of trade goods were allowed into or out of Iraq during the sanction period (further information about these sanctions and their effects can be found at www.casi.org.uk and at ). The sanctions were not lifted until May 2003, after the government of Iraqi president Saddam Hussein was overthrown.
There is a United Nations sanctions regime imposed by UN Security Council Resolution 1267 in 1999 against all Al-Qaida- and Taliban-associated individuals which has undergone years of modification by a dozen UN Security Council Resolutions. The cornerstone of the regime is a consolidated list of persons maintained by the Security Council. All nations are obliged to freeze bank accounts and other financial instruments controlled by, or used for the benefit of, anyone on the list.
For instance, one country may conclude that another is unfairly subsidizing exports of one or more products, or unfairly protecting some sector from competition (from imported goods or services). The first country may retaliate by imposing import duties, or some other sanction, on goods or services from the second.
Again, as the Asian economies became more and more effective competitors on the international stage, achieved largely via export-led growth, many countries imposed import tariffs and other measures aimed at protecting domestic industries. The intention was not always permanent protection (of the threatened industry) but sometimes an attempt to give the domestic firms time to adjust to a changed competitive context.
The disagreements that occur are not only bi-lateral and can be fundamental to the working of the global economy and e.g. to the alleviation of global poverty. As of September, 2003, World Trade Organization talks in Cancún broke down between the advanced nations and the developing world. Unresolved issues include the advanced nations subsidizing their agricultural sectors to the detriment of the developing world, which might otherwise sell more agricultural produce into e.g. the USA and Europe.
In mid-March 2010, Brazil introduced new sanctions against the US. These sanctions were on the basis that the US government was paying cotton farmers for their products; an action not allowed by the WTO. The sanctions cover cotton, as well as other products such as cars, chewing gum, fruit, and vegetable products. The WTO is currently supervising talks between the states to remove the sanctions.
North Korea has been the subject of international sanctions since the Korean War, which were eased under the Sunshine Policy and by U.S. President Bill Clinton, but they were tightened again in 2010.
Category:Political economy Category:International sanctions Category:International trade
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