US announces sanctions changes for Libya, Sudan, Iran
Regional-USA, Economics, 4/29/1999

The US yesterday announced exemptions on certain products under the US sanctions, which will affect current sanctions imposed against Libya, Sudan, and Iran.

"The United States will exempt commercial sales of agricultural commodities and products, as well as medicine and medical equipment from future unilateral Executive Branch economic sanctions regimes, unless he determines that our national interest requires otherwise," a statement from the US White House press secretary said.

The statement said that the US may decide to sanction sales of these items in certain instances: "Such extraordinary circumstances might include actual or potential armed conflict involving the United States or its allies; a situation in which a regime is diverting imports of food, medicine, or medical equipment to its armed forces or to its political supporters; or a situation in which the provision of such items would provide unjustified economic benefit to a regime or its officials."

US Undersecretary of State for Economic, Business and Agricultural Affairs Stuart Eizenstat said yesterday in a briefing on the change that the change were "implemented as part of our overall approach to sanctions reform, and it is not directed at any specific country."

He said that although there is no change in the circumstances that first brought about sanctions, "Sales of food, medicine and other human necessities do not generally enhance a nation's military capabilities or support terrorism. On the contrary, funds spent on agricultural commodities and products are not available for other less desirable uses."

Eizenstat said the change does not mean that proposed sales of affected items to sanctioned countries would automatically be approved, but "fully-negotiated contracts" with "non-government entities or to governmental procurement bodies not affiliated with the coercive organs of the state" would be reviewed on an individual basis. "It is also a requirement that there be no US Government funding, financing or guarantees in support of the sales authorized by this changed policy," he added.

He said that the change in policy would have no effect on Iraq, as these items come under the boundaries of the oil-for-food program administered by the UN.

Eizenstat said that Iran "would become eligible under the circumstances we've laid out for food and medical sales. It was not intended to send a signal to them; it was not intended to send a signal to Libya or to the Sudan. But it will have an effect on them."

Eizenstat outlined two negative affects that the current sanctions have: "Unilateral sanctions which contain prohibitions on the sale of humanitarian products, medicines, food, et cetera, tend to have potentially negative impacts. The first is that it can create a counter-reaction in the world community, if it appears that it is punishing innocent people as opposed to dictatorial regimes, and make it more difficult to get the cooperation of even our closest allies for their sanctions."

Secondly, he said that the sanctions have have a negative impact on US interests through reducing potential US exports.

"When you look at the unilateral sanctions that are now being applied to Iran, Libya and Sudan insofar as they effect food and medicine, it's very difficult to say that they've accomplished the purposes of including those products. The conduct hasn't changed. They simply use it as an argument that we're hurting the average citizen," he said.

Eizenstat also said that the timing of the decision had no relation to Libya's recent handing over of the two Libyan suspects in the Lockerbie case for trial by a Scottish court in the Netherlands.

Previous Stories:
  Rubin downplays chances for bilateral meeting with Libya   (4/9/1999)
  Preparations for the first US-Libyan meeting since 18 years   (4/9/1999)
  Clinton extends Sudan sanctions   (10/29/1998)

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