Summary of Lugar Sanctions Reform Bill

The Lugar Bill would:

• Establish a more disciplined and deliberate process for imposing unilateral U.S. sanctions, including greater consultation between Congress and the Executive Branch and consideration of alternatives, such as multilateral pressure and diplomatic initiatives.

• Ensure that Congress and the Executive Branch have adequate information about the likely effectiveness as well as economic and humanitarian costs of proposed sanctions and have conducted a thorough analysis of whether the proposed sanction is the best tool for accomplishing U.S. objectives.

• Establish regular reporting and sunset requirements, so that sanctions do not remain on the books in perpetuity if they have proven to be ineffectual.

• Provide the President with the flexibility to adjust timing and extent of any unilateral sanction, and authority to waive sanctions if they would be counterproductive.

• Apply only to new sanctions and would not affect existing sanctions.

• Protect existing contracts against subsequent sanctions.

  Key elements of the Bill:

  Before a unilateral sanction is imposed, Congress and the President would be required to request information about, and report on, the following common sense questions:

• Will the proposed unilateral sanction achieve a clearly defined U.S. objective ?

• What are the economic costs for the American industry and agriculture, including damage to America's reputation as a reliable supplier ?

• Will there be serious backlash against other U.S. humanitarian, security and foreign policy objectives, including damage to multilateral cooperation with key U.S. allies ?

• Have alternatives, such as multilateral initiatives or diplomacy, been tried and failed ?

  The Lugar bill provides for reform of the U.S. sanctions policy. It does not prevent Congress or the Executive Branch from imposing unilateral sanctions that are justified by U.S. foreign policy and national security interests.