Economic sanctions are part of the body of international trade measures. Economic sanctions are designed to limit or eliminate a nation’s ability to export products. These types of trade measures are commonly referred to as “coercive trade measures”. Economic sanctions are imposed in response to acts of aggression or threats of violence that target the civilian populations of a nation.
Economic sanctions are often imposed against a nation, company, entity, or individual, and aimed at reducing the nation’s ability to export or gain access to certain goods and services. Economic sanctions can also be multilateral, issued by multiple nations on different entities, or bilateral, imposed on a single country. The types of economic sanctions that can be applied are not predetermined. Economic sanctions can include foreign direct investment (FDI), importation of capital equipment, foreign exchange rates, protection from foreign currencies (embargoes, and similar bans), and the reduction or withdrawal of certain tariffs or restrictions.
There are three main categories of trade sanctions. First, there are economic or trade sanctions that are directed at reducing or eliminating the nation’s ability to export products. Examples include curtailing state support for political actions (exports to designated countries), nuclear proliferation cooperation, and subsidies or limits on purchases of certain products from particular suppliers. Second, there are economic or trade sanctions that seek to increase international cooperation and assistance in resolving flagrant abuses of human rights, such as torture, forced disappearances, and war crimes.
Second, there are economic or trade sanctions that seek to increase international collaboration and cooperation. For example, the United States and European Union have implemented relevant programs to help third-party nations to address problems that have existed for years without significant progress. The EU is the builder of the European Union, the largest member-states of which are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The EU itself does not have a trade or economic sanctions against any nation. In addition, no party to the trade or economic sanctions regime is required to provide financial contributions to the United Nations.
Economic or trade sanctions are not limited to the reduction or elimination of certain items. For example, the EU has trade and economic sanctions in place with China to implement its attempt to contain the rising costs of its currency, the renminbi. The United States and United Kingdom have similar measures in place with their own trade and economic sanctions against certain nations including Russia, Iran, North Korea, Venezuela, Malaysia, Singapore, Turkey, and a host of others. Such actions by the international community and individual nations lead to the question of why and how economic or trade sanctions have been imposed.
Why did the global community to impose economic or trade sanctions? Some believe that the current global economic crisis was due to a breakdown in global communication, a lack of trust in government, corruption in public sectors, and an unwillingness by some countries to increase economic growth at the cost of other aspects of their societies. Others believe that the economic crisis began in the middle class around the world and that the United States and Europe in particular have not been providing enough globalization opportunities to their citizens. Perhaps it is all of these or a combination of these factors. The fact remains that economic sanctions have been imposed on some countries and more often than not, those countries are choosing to accept economic and trade sanctions as a way to bring economic prosperity and relief to their people.
Many nations, including the United States, have found that imposing economic and trade sanctions is a popular way to handle the current global economic crisis. Sanctions have been used to increase oil prices, decrease natural gas and electric prices, cut off certain industries from international trade, reduce unemployment, force corporations to reduce purchases of luxury items, increase crop insurance, and put restrictions on financial transactions. Many nations have felt that economic sanctioning was a necessary way to get the weak economic parts of their societies back on their feet faster and allow the stronger nations to become more involved in global affairs. The United States has implemented several economic measures with the hope that this will help the global economy recover from the recent recession.
If you are looking to find out more about economic sanctions and what they mean, then you can always research the topic further on the Internet. You can find a lot of different websites and articles dedicated to explaining economic sanctions in detail. As you read and research, you will begin to see how each individual case is handled and what effects they might have on your own country or company. You may be surprised to learn that economic and trade embargoes aren’t only a thing of the past. Economic sanctions are still in place today, and they’re being used to try and make sure that the weaker countries stay in line.
