Trade sanctions + differential access to markets Flashcards
What are trade sanctions used for?
They can be used as an economic or political tool to disadvantage or punish a country
Who places the sanctions on countries?
The UN Security Council
Why were sanctions placed on Syria?
The ongoing civil war and human rights violations
Why were sanctions placed on Libya?
Ongoing conflict and human rights violations
Why were sanctions placed on Eritrea?
Alleged support for armed groups in Somalia
Why were sanctions placed on North Korea?
Its nuclear and ballistic missile programs
Why were sanctions placed on Iran?
Its nuclear program. Illegally making nuclear weapons. These were partially lifted in 2016
Where are most sanctions placed?
The middle east or NE Africa
Why might sanctions not be a good thing for countries?
It isn’t fair on the regular citizens
What is the purpose of UN trade sanctions?
Apply economic pressure on a country to induce a change in behaviour that is deemed to be a violation of international laws or threats to peace and security
What is an arms embargo?
A restriction placed on trading arms or other weapons to a country
What does restricted access to global markets (sanctions) impact? (4)
People, agriculture, industry, developments
How are people impacted by restricted access to global markets?
Job losses and reduced economic opportunities.
Ripple effect on communities - people not able to afford basic necessities.
May also restrict important services such as healthcare and technology.
How is industry impacted by restrictions to global markets?
Restricts ability to sell products overseas, reducing profitability.
Makes competing and access to markets difficult. Disrupts supply chain
How is agriculture impacted by restricted access to the global markets?
Limits ability of farmers to sell overseas. Limited access inputs such as seeds, fertilisers and equipment, which reducing yields.
How is development impacted by restricted access to the global markets?
Limit the ability to participate in the global economy, slowing down economic growth and development. Increases poverty and inequality. Limits the country’s ability to invest in infrastructure, education and healthcare.
What does SDT stand for?
Special and differential treatment agreements
What are SDTs?
Provisions within international trade agreements that provide certain developing countries with more favourable terms
What is the purpose of SDTs?
Provide developing countries with the tools they need to participate in the global trading system and to support their economic development
What do SDTs typically offer?
A range of concessions, exemptions from certain provisions of trade agreements, and technical assistance to help them meet trade-related obligations
What do SDTs intend to do?
Promote more balanced trade relations between developed and developing countries helping to reduce the gap in economic development between them, boosting economic growth, creating jobs and reducing poverty
What is the AGOA example of an unsuccessful SDT?
The African growth and opportunity act. Provides eligible African countries with duty-free access to the US market for a range of products. Despite it being around since 2000, many african countries can’t fully access the SDT, due to various obstacles such as lack of infrastructure
Why might SDTs have limited effectiveness?
A combination of factors, including bad infrastructure, poor governance, and limited access to finance and technical assistance.
