U.S. economic sanctions are on a path toward losing power and impact, potentially undercutting a variety of tools used in U.S. foreign policy, according to a study published April 29 by the Center for a New American Security. The study, “Economic Dominance, Financial Technology, and the Future of U.S. Economic Coercion,” examines the current state of U.S. economic sanctions and makes several predictions, portraying a muddy outlook for the future of U.S. sanctioning tools. “If policymakers want to be able to continue deploying coercive economic tools effectively … they must ... get ahead of trends that could, if left unchecked, weaken some of the most important tools of U.S. foreign policy,” the study said.
Reps. Eliot Engel, D-N.Y., and Michael McCaul, R-Texas, are working on legislation that would strengthen U.S.-imposed sanctions on Russia, they said during a House Foreign Affairs Committee meeting May 1. Engel said they are planning to introduce a bill that will “protect America’s interests, ramp up the targeted sanctions, enhance diplomacy and counter propaganda efforts to meet the Russian threat.” McCaul said he and Engel had breakfast with Secretary of State Mike Pompeo earlier that day and said “there’s no doubt” Pompeo “looks at Russia as a great threat” to the U.S. “I don't think this is a partisan issue,” McCaul said. “I hope we can pass legislation out of this committee.”
In the April 30 edition of the Official Journal of the European Union the following trade-related notices were posted:
The National Shooting Sports Foundation supports President Donald Trump's plans to withdraw from the Arms Trade Treaty (see 1904260063), the group said in a news release. "The treaty was intended to control the international trade in firearms under the guise of protecting human rights," the group said. "The National Shooting Sports Foundation strongly opposed the treaty as it would have exposed the firearms and ammunition industry to a confusing web of international regulations that would not have contributed to curbing illegal arms trafficking, protecting human rights or guaranteeing the rights of United States citizens." The international sales of arms are still "highly regulated by U.S. law and this action has no effect upon these stringent export controls," the group said.
President Donald Trump said the U.S. will place the “highest-level sanctions” and a “complete embargo” on Cuba if it does not stop “military and other operations” in Venezuela. The announcement, made April 30, came hours after Venezuelan opposition leader Juan Guaido called for a military uprising. U.S. National Security Adviser John Bolton said earlier that Cuban troops were aiding Venezuelan President Nicolas Maduro, according to the Associated Press.
Export Compliance Daily is providing readers with some of the top stories for April 22-26 in case they were missed.
Jacob Lew, a former chief of staff and Treasury secretary under President Barack Obama, called the Trump administration's approach to trade and sanctions “troubling,” saying the administration is placing unneeded stress on U.S. allies and damaging the effectiveness of U.S. foreign policy. Speaking April 30 at the Center for a New American Security, a Washington think-tank focused on national security, Lew was critical of Trump’s 2018 withdrawal from the Iran nuclear deal, was skeptical of the president’s “brute force” approach to trade deals and pointed to “worrisome trends” that he said will lead to U.S. undermining its own sanctions. Among those trends, Lew said, are “ambiguous diplomatic objectives, growing unpredictability, increased unilateral action” and a “narrow focus on isolated policies with less regard for the broader context.”
It's unclear how North Korean leader Kim Jong Un got the armored Mercedes-Maybach limousines made by Daimler that Kim used for several recent meetings with international leaders, a spokesman for the company said. In an April 29 email, a Daimler spokesman said the company has a “comprehensive export control process” to “prevent” all sales to North Korea. “We have no indication how those vehicles have come to the use of” North Korea, he said. Exports of luxury goods to North Korea are banned under United Nations sanctions, and sanctions imposed by the U.S. allow the Treasury’s Office of Foreign Assets Control to designate any person who “engages in a significant export to or import from North Korea,” according to the Treasury.
The European Council renewed its sanctions on Myanmar/Burma until April 30, 2020, according to an April 29 press release from the European Union. The sanctions place a ban on exporting dual-use goods to the country and prohibit dealing in “arms and equipment that can be used for internal repression,” the release said, as well as equipment for “monitoring communications” and “military cooperation” with the Myanmar Armed Forces. The sanctions also cover 14 “high-ranking officials” in the Myanmar military who committed “serious human rights violations,” the council said.
Aerospace Association Requests More Discussion Before State, Commerce Finalize Space Export Controls
The Aerospace Industries Association asked the Commerce Department for more time before it sets space-related export control regulations, in order to allow for its member companies to have "open discussions with the government," in comments filed in a Bureau of Industry and Security proposed rulemaking regarding the Commerce Control List for munitions. The trade group said it lacked an "industry consensus" on multiple changes being considered. The comments were solicited by State and Commerce after both requested public comments on a proposal for items listed on the U.S. Munitions List in categories IV and XV: launch vehicles and spacecraft. The proposal is part of a broader effort by the Trump administration to revive the National Space Council and review space-related export controls (see 1904180014). Comments were due April 22