Richard G. Lugar--free trade, unilateral and economic trade sanctions

RICHARD. G. LUGAR
INDIANA

WASHINGTON, DC 20510-1401

October 30, 1997

Dear Colleague:

     I will be introducing legislation next week to establish a more deliberative, common-sense approach to United States sanctions policy. The legislation is entitled the "Enhancement of Trade, Security, and Human Rights through Sanctions Reform Act" or simply the Sanctions Policy Reform Act.
     Numerous studies have shown that unilateral economic sanctions, as a tool of foreign policy, rarely achieve their foreign policy goals. They almost never help those we want to help, frequently harm the United States more than the target country, and undermine our international competitiveness and economic security. Unilateral economic sanctions have too often been a policy of first choice when other policy alternatives exist.
     Between 1993 and 1996, the United States imposed unilateral economic sanctions 61 times against 35 countries to achieve one or more foreign policy objectives. The 1997 Report of the President's Export Council cited 75 countries representing 52 percent of the world's population that have been subject to or threatened by U.S. unilateral economic sanctions, jeopardizing billion" in export earnings, hundreds of thousands of American jobs and our ability to provide humanitarian assistance abroad.
     The proposed legislation is prospective and would not affect existing U.S. sanctions. I would apply to a limited group of sanctions that are unilateral and those intended to achieve foreign policy or national security goals. It would not prohibit unilateral sanctions since they must remain a tool of American foreign policy under exceptional situations. Finally, the legislation does not address the complex issue of state and local sanctions intended to achieve foreign policy goals.
     The bill would establish procedural guidelines and informational requirements before unilateral economic sanctions are considered or imposed. The bill would mandate that we be better informed on the likelihood sanctions will achieve clearly defined goals, the economic costs to the United States, the impact on our reputation as a reliable supplier, the effects they would have on achieving other foreign policy objective, and whether other policy options have been explored.
     The bill provides for more active consultation between the Congress and the President and provides Presidential waiver authority in emergencies or if he determines it is in the national interest. It includes a sunset provision that would terminate unilateral economic sanctions after two years unless re-authorized by the Congress or the President. It also includes a contract sanctity provision to help ensure the united States is a reliable supplier. The bill authorizes agricultural assistance to American farmers and ranchers who bear a disproportionate burden and who are most vulnerable under current sanctions policy.
     Some argue that the expression of American values are more important than U.S. commercial interests or other foreign policy objectives. Nothing in this bill contradicts, challenges or prohibits that view. The bill seeks improved guidelines and procedures for a more deliberative process by which the President and the Congress can make reasoned choices af fecting the totality of American values and interests abroad.
     Attached for your information is a section-by-section analysis of the proposed legislation.

Sincerely,

Richard G. Lugar

GO TO THE "SECTION-BY-SECTION ANALYSIS"
OF LUGAR-HAMILTON-CRANE BILL

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