free trade, unilateral and economic trade sanctions


16 April 1997
AP-Dow Jones News Service

Business Groups Form Coalition To Fight Sanctions Trend

WASHINGTON -- More than 400 energy, manufacturing and agriculture groups announced Wednesday they have formed a coalition that aims to prevent Congress and the Clinton administration from adopting further economic sanctions policies.

The coalition, called USA Engage, said it will oppose the use of unilateral foreign policy sanctions and instead encourage engagement with countries with which the U.S. has foreign policy differences. Members, including the National Foreign Trade Council and the American Farm Bureau Federation, have contributed close to $1 million for the campaign.

"We believe that unilateral sanctions not only undermine American leadership and competitiveness but are often counterproductive," Donald V. Fites, chairman and chief executive officer of Caterpillar, Inc., said at a press conference to announce the group's creation.

"We also believe it is not enough to remind our leaders that unilateral sanctions don't work," he said. "Nor is it sufficient for us to only emphasize the high costs associated with such policies.

"Our first order of business is educational," Fites continued. "The business community needs to do a better job providing constructive alternatives to sanctions."

The group plans to meet with U.S. congressmen, administration officials and trade groups to educate them about the negative effects of sanctions. It has also established a Web site on the Internet.

Fites said he spoke for hundreds of businesses when he said that the topic of sanctions comes up all the time in meetings with overseas customers and potential customers.

"Any uncertainty about our ability to provide long-term product support from the United States gives our Japanese and European competitors a significant competitive advantage," he said.


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