Co-Sponsor H.R. 2708, the Sanctions Reform Act

Dear Colleague:

          We write to urge you to co-sponsor H.R. 2708, the "Enhancement of Trade, Security, and Human Rights through Sanctions Reform Act." H.R. 2708 would improve the way the U.S. government makes decisions to impose unilateral economic sanctions for foreign policy purposes.

          The U.S. needs economic sanctions in its foreign policy toolkit. But we have imposed sanctions much more frequently and broadly in recent years. According to the President's Export Council, more than 75 countries are now subject to, or threatened by, U.S. sanctions. U.S. laws authorize 21 different sanctions targeting 27 different kinds of foreign conduct.

          Unilateral sanctions can harm our economy. They reduce U.S. exports -- $15 to $19 billion annually, according to a study by the respected Institute for International Economics. Losing exports on this scale means passing up tens of thousands of good-paying export sector jobs. Many U.S. executives say our growing reputation for sanctions is itself discouraging potential foreign customers from dealing with U.S. firms.

          Unilateral sanctions might be worth these costs if they achieved their worthy aims, but nearly every study confirms that they rarely do. Unilateral measures generally fail because the world economy has become too interdependent. When we act alone to deny a country access to our products or our markets, it usually has plenty of alternatives. Yet even when sanctions fail to change a country's policies, they often hurt its citizens.

          Remarkably, no U.S. law requires a comprehensive assessment of the impact of proposed unilateral sanctions. H.R. 2708 would do just that. It would require a committee reporting a sanctions hill to request an analysis by the President of the bill's likely impact on U.S. foreign policy, economic, and humanitarian interests, and an analysis by CBO of its economic impact on the private sector. The President would be required to prepare a similar analysis of any sanction he wants to impose, to consult with Congress, and to provide opportunities for public comment.

          H.R. 2708 also seeks to improve policy by requiring that sanctions: 1) expire after two years unless reauthorized; 2) protect existing contracts; 3) be targeted narrowly on responsible actors; and 4) minimize interference with the work of private humanitarian organizations.

          H.R. 2708 would not impact any sanctions currently in effect or prohibit any future sanctions. The bill would not limit the President's ability to impose sanctions in emergencies. It would not affect any sanctions imposed under U.S. trade, arms export, health, or safety laws, or under multilateral agreements on proliferation, the environment, or other international issues.

          H.R. 2708 is a "yellow lightî for sanctions, not a "red light. " Its message is to proceed with caution. It would ensure that, before we act unilaterally, we have in hand better information on the potential costs and benefits of proposed sanctions. And if we did choose to act unilaterally, H.R. 2708 would strengthen U.S. sanctions by reducing their domestic economic cost and minimizing their harm to innocent citizens.

          If you would like to co-sponsor H.R. 2708, a summary of which appears on the back of this page, please have a member of your staff contact David Weiner at extension 55973. Thank you.

Definition of Unilateral Sanctions (Section 4)

Unilateral sanctions are defined to encompass a range of restrictions or conditions on economic interaction with foreign entities, imposed for foreign policy or national security reasons. Measures imposed pursuant to U.S. trade, health, safety, or environmental laws, or pursuant to multilateral agreements, would not be covered by the bill.

Guidelines for Sanctions Legislation (Section 5)

A unilateral sanction bill considered by Congress should:

State the foreign policy or national security objective the sanction is intended to achieve.
Provide for termination of the sanction within 2 years, unless specifically reauthorized. Provide sanctity for contracts in effect on the date of enactment.
Provide authority for the President to waive or adjust the timing and scope of the sanction.
Be narrowly targeted on responsible entities, and avoid harm to humanitarian activities.
Provide assistance to farmers if the Secretary of Agriculture or CBO finds that the proposed sanction, or retaliation against the sanction, is likely to reduce farm exports.

Procedural Requirements for Sanctions Legislation (Section 6)

Committees reporting a unilateral sanction bill would be required to request from the President, and include in the report accompanying the bill, a report on the likelihood that the sanction will achieve its stated objectives; on the likelihood of retaliation; on steps that have been, or could be, taken to achieve the goal of the sanction; and on the likely impact of the sanction on the U.S. economy, U.S. foreign policy interests, and humanitarian conditions in the target country.

Future unilateral sanctions bills will be construed to contain a "federal private sector mandate," as defined under the Unfunded Mandates Reform Act of 1995. A CBO analysis of the likely costs of a proposed sanction to the U.S. economy would need to be published in the committee report or the Congressional Record before the measure could be considered on the floor.

Guidelines for Sanctions Proposed by the President (Section 7)