From Cuba to Iraq: Trade Sanctions Reform and Agricultural Markets Presentation at SAEA Organized Symposium: The Impacts U.S. Unilateral Reform on Southern.

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From Cuba to Iraq: Trade Sanctions Reform and Agricultural Markets Presentation at SAEA Organized Symposium: The Impacts U.S. Unilateral Reform on Southern Agriculture Parr Rosson and Flynn Adcock Center for North American Studies Texas A&M University Prepared for the SAEA Annual Meetings Mobile, AL February 5, 2007

Overview  History of U.S. Trade Sanctions  Impacts of Trade Sanctions on Agriculture  The Case of Cuba  Summary and Implications

Partial List of U.S. Trade Sanctions Target Initial Year Type of SanctionsPrecipitating EventKey Changes to Sanctions North Korea 1950Comprehensive trade and financial. sanctions Korean War; possible acquisition of nuclear Weapons U.N. threatens trade and financial sanctions to forestall nuclear weapons acquisition ( ) Vietnam1954Denied MFN statusVietnam War and aftermath; personnel MIA Total trade embargo lifted; other restrictions remain (1994) Cuba1960Comprehensive trade and financial sanctions Castro-led takeover; interventions in Africa (1980s); Repress opposition Cuban Democracy Act restricts trade of U.S. subsidiaries abroad (1992), TSREEA (2000) Libya1978Comprehensive trade and financial sanctions; Air travel ban Gadhafi regime support for terrorism; bombing of Pan Am Flight #103 Limited U.S. export restrictions (1978); Lifted in 1999 and Codified by TSREEA USSR1980Grain & Oilseed EmbargoInvasion of AfghanistanLifted in 1981 Iran1984Comprehensive trade and financial sanctions Support for terrorism, opposition to peace process in Middle East, WMDs Total export embargo (1995); Lifted in 1999 and Codified by TSREEA Sudan1988Comprehensive trade and financial sanctions Civil war and human rights abuses; terrorism support Aid sanctions ( ); Lifted in 1999 and Codified by TSREEA Iraq1990Comprehensive trade and financial sanctions, limited oil sales under U.N. oil-for-food program Invasion of Kuwait; post- war discovery of extensive program to acquire WMDs Toppling of Saddam, Trade opened back up SOURCE: Institute for International Economics, Policy Brief 98-4 Sanctions-Happy USA, by Gary Clyde Hufbauer, July 1998

Agricultural Imports for Countries Targeted by U.S. Sanctions Agricultural Imports Imports from U.S. Percent from U.S. Million Dollars Cuba$1,400$ % Vietnam$2,800$ % Sudan$1,200$ % Iran$3,900$ % Libya$1,200$7.60.6% Source:

Slightly Higher than through Nov. 2005

Summary and Conclusions  Many Times Agriculture Has Borne Disproportionate Share of the Burden  Sanctions Are Disruptive, May Harm US Producers & Likely Ineffective if Unilateral  Southern Rice, Corn, Wheat, Meats Harmed by Sanctions  US Ag Export Growth to Cuba Impressive- Likely Politically Motivated

Implications  As Sanctions are Lifted, There is an Educational Role to Inform  Important to Be Objective, Staying Out of the Political Fray  Geopolitical Considerations Always Trump Agricultural Interests

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