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U.S. TRADE SANCTIONS Sudan

U.S. TRADE SANCTIONS Sudan. Gauhara Karimova. Overvue.

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U.S. TRADE SANCTIONS Sudan

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  1. U.S. TRADE SANCTIONS Sudan Gauhara Karimova

  2. Overvue • For over a decade, the U.S. Dept. of the Treasury has administered economic sanctions against the Government of Sudan (GOS) for its support for international terrorism, efforts to destabilize neighboring governments, and the prevalence of human rights violations, under the International Emergency Economic Powers Act (IEEPA).

  3. Legislation • On November 3, 1997, President Clinton issued EO 13067 which imposed a comprehensive trade embargo against the entire territory of Sudan and total asset freeze against the GOS. • On March 29, 2005 and April 25, 2006, the U.N. Security Council issued resolutions 1591 and 1672, respectively, condemning the continued violations of human rights and international humanitarian law in Sudan’s Darfur region.

  4. Legislation Cont. • On April 27, 2006, President Bush issued EO 13400, which expanded the first EO to target the people involved in the Darfur conflict. • Six months later, President Bush issued EO 13412, excluding the regional Govt. of Southern Sudan from the definition of GOS, so the former could partake in most economic transactions. However, it did not exclude the region’s petroleum or petrochemical industries.

  5. Major Problem • The ultimate objective of sanctions is behavioral change, however, it is hard to quantify and measure the impact that they have and the role they play in bringing changes. • Sudan’s economy has had overall growth and stability, with a GDP growth rate in both 2006 & 2007 exceeding 10 percent. • GOS has endeavored to navigate around U.S. sanctions.

  6. One Issue • The U.S. has the broadest Sudan sanctions regime in the world. • Current UN Security Council and EU sanctions against Sudan include only a limited arms embargo and a travel ban and asset freeze on four individuals. • GOS has large Chinese and regional investments in its petroleum and petrochemical sectors.

  7. Policy Proposal • Sanctions are most effective when imposed multilaterally, because they are more effective in bringing about change in regime behavior. • Therefore, the U.S. should seek multilateral cooperation with its allies to augment the pressure being already exerted against the GOS. • Once Sudan undertakes significant improvement in its regime behavior and changes its policies, the U.S. should be prompt in implementing gradual removal of sanctions in light of possible economic gains.

  8. Citations • http://www.treasury.gov/resource-center/sanctions/Programs/Documents/sudan.pdf • The Department of Treasury (Office of Foreign Assets Control) description of the Sudan Sanctions Program. • http://www.treasury.gov/resource-center/sanctions/Documents/sudan_report_030509.pdf • The Department of Treasury (OFAC) report to Congress on the effectiveness of U.S. Economic Sanctions with respect to Sudan (2009). • http://www.treasury.gov/resource-center/sanctions/Documents/sudan.pdf • An overview of the Sudanese Sanctions Regulations – Title 31 Part 538 of the U.S. Code of Federal Regulations and Executive Order – Blocking Property of Persons in Connection with the Conflict in Sudan’s Darfur Region • http://www.cato.org/publications/commentary/going-alone-economic-sanctions-hurts-us-more-foes • CATO Institute article describing how trade sanctions hurt the U.S. economy more so than they bring forth any benefits. • http://www.businessweek.com/articles/2013-05-23/why-economic-sanctions-rarely-work • Bloomberg article on why economic sanctions rarely work. • http://www.cfr.org/sudan/crisis-guide-darfur/p13129 • Short 5 minute video on the crisis in Darfur.

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