TRADE SANCTIONS

Issue:

Should unilateral trade sanctions laws be reformed?

Background:

In 2000, Congress passed and the President signed sanctions reform legislation The law exempts agricultural and medical products from current and future sanctions. The president could re-impose a sanction only if both the Senate and House approve his request through a joint resolution. If a sanction is re-imposed, it would sunset in two years. Agricultural exports to the five previously sanctioned countries (Iran, Sudan, North Korea, Cuba, and Libya) would be subject to a general one-year license and would not benefit from federally funded credit guarantee or market promotion programs. There are also significant restrictions placed on travel to Cuba which will impede U.S. marketing efforts and sales to that country. Also in the case of Cuba, there are prohibitions on access to U.S. private commercial financing and insurance programs.

While this law should lead to greater access to these five markets, AFBF is working to eliminate the "general licensing" process, gain access to U.S. export credit guarantee programs to facilitate sales, and eliminate travel restrictions and prohibitions on commercial financing programs in regards to Cuba.

AFBF Policy:

Farm Bureau believes all agricultural products should be exempt from all embargoes and unilateral sanctions except in the case of armed conflict. The threat of embargoes or other restrictions adversely affects markets and is an inappropriate tool in the implementation of foreign policy. If an embargo or sanction is enacted, farmers should be compensated by direct payments for any resulting loss.

Action:

Congress should pass S. 171 introduced by Senators Dorgan (D-ND), Roberts (R-KS) and Baucus (D-MT) to remove the third country financing and travel restrictions on Cuba.

January 2002

This page was last modified Thu Feb 14, 2002 at 02:44 am