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Working Paper

Signatories: Russian Federation, UAE , Pakistan, Lebanon,


Argentina , Afghanistan, Libya , Zimbabwe ,Bangladesh,
Belgium, Denmark ,India, KSA, Azerbaijan, France Germany,
Greece, Mexico, Sweden, Ireland,DPRK.

Defining the economic sanction as any restriction imposed by


one country (the sender) on international commerce with another
country (the target) in order to persuade the target countrys
government to change a policy.
OR
The international leveled penalties with the measures of economy
as a punishment for any state or a country on committing any
unlawful act or if it is found as a threat for the world peace.
Acting under the article 39 of chapter vii of the UN charter, which
states that
The security council can take the enforcement
measures to maintain or restore international peace and security.
Such measures range from economic or other sanctions not
involving the use of armed force to international military action.
Also defining a tax or duty to be paid on particular class of
imports or exports.
Believes that if a country is a source of threat to the international
security or to a particular country, or a country fails to provide
basic human rights to its own civilians.
Expressing types of sanctions:
i.

Comprehensive economic and trade sanctions.


Limiting or stopping exports to the target countries.
Limiting or stopping imports to the target countries.
Restricting investments in that country.

ii.
iii.
iv.
v.
vi.
vii.
viii.

Prohibiting private financial transaction between the


citizens of both countries or between the governments
of both the countries or between the citizen and the
government of both the countries.
Restricting the availability of the sender countrys
programs for egg.
US Export Import bank (EM-IM Bank) and the Overseas
Private Investment Corporation (OPIC).
Restricting the fishing trade if ithas no source of marine
food.
Travelling bans for the citizens and the government officials of
the targeted country.
Diplomatic relation restriction or political restrictions.
Social and cultural relation restrictions if do exist.
Military sanctions.
Sports sanctions.
Technical sanctions
Academic sanctions
Reminding that the types of sanctions mentioned above can be
unilateral or multilateral sanctions.
Recommends that negotiations between the target country and the sender
entities must be preferred over all other options.

Highlighting the poor track record of economic sanctions.


According to a report various countries imposed economic
sanctions in 116 cases they failed to achieve their stated
objectives in 66% of the cases between 1914 and 1990.
Since 1973 the success ratio of imposing economic sanctions
has fallen to 24% for all cases
Emphasizing on the fact that, a unilateral trade or investment
embargo may not be enough to persuade a countrys government
to change its objectionable policies in todays global economy,

foreign rivals quickly and easily replace with countries or


companies to meet the needs of a target countries market.
Believes that smart sanctions/targeted sanctions may have a few
constructive impacts however the negative impacts out number
them drastically as the economic sanctions have directly.
When this particular type of sanction is imposed on the
targeted government, individuals (having a high impact on
the country or society), organization or companies, etc.
would be restricted it will instantly effect the economy, and
once the economy is destabilized it will definitely have a
very frequent and a very negative impact on the masses, the
GDP of the country, basic human rights, education, health
and lawfulness etc. and again millions of people would be
dying of hunger.
Strongly condemns the adverse impacts of economic sanctions
as being the follows:
De-stabilization of the target countrys economy as a result
of lack of trade.
Proves to be a barrier in the achievement of Millennium
Development Goals. Specially goal number 8 being the
development of a global partnership for development
Creating isolation between the target country and the global
trade community resulting in disruptive foreign relations
Promoting illegal activities and increase in black markets
Huge destruction on economy.
Dramatic decrease in the GDP thus increasing inflation.
Violates the human rights i.e. the basic needs of human such
as food, clothing, shelter and medical care. etc.
Increase in illiteracy rate.
Deterioration of domestic markets sender and target.
Agricultural expenditure.

The neighboring countries of the targeted countries is


effected
Culture of the targeted countries is affected.
Increase in death rates due to starvation, or the diseases
caused by hunger.
Increment in international debts.
Recommending the alternative sanctions to be imposed such as
non-economic sanctions:
i. Cancelling ministerial and summit meetings.
ii. No invitation in any global event by the sender
entities.
iii. Withdrawing a sender countrys ambassador.
iv. Removal of most preferred nation status of the
targeted country.
v. Opposing the target countries to take part or to
host any highly visible international event such as
Fifa or Olympics.

Recommends the reasons of imposing tariffs as


To protect domestic jobs : If consumers buy less expensive
foreign goods , workers who produce that good domestically
might lose their jobs.
To protect infant industries : If a country wants to develop its
own industry producing a particular good , it will use tariffs
to make it more expensive for consumers to purchase the
foreign version of that good. Hope is that they might buy
domestic version instead and help that industry grow.
To retaliate against trading pattern : If a country does not
play by the trade rules agreed by both countries previously ,
the country that feels jilted might impose tariffs on its
partners goods as a punishment. The higher price caused by
the tariff should cause purchase to fall

To protect consumer : If a government feels a foreign good


might be harmful, it might implement a tariff to discourage
consumers from buying it. For example cocaine etc.
To generate revenue : If a government needs to develop its
own economical condition the governments may apply high
tariffs on international goods to generate revenue.
Recommends refraining from using extreme measures such
as economic sanctions and applying high tariffs as an alternate
for the purposes mentioned above.
Recommends to form an Informal Working Group on the
general issues of imposing high tariffs, which will be named as
ISIS International Sanctions Issues Solution which will
develop general recommendations about imposing high tariffs
or other alternatives such as non economical sanctions.
This working group will be working under WTO
This group will be funded by WTO
The members of Security Council will be the part of
working group.
The ISIS will be working under the following frame work.
Designing the implementation of high tariffs or other
alternatives.
Implementation , evaluation and follow up
Monitoring and enforcement
Criteria and practices for a standard format for reports and
sanction monitoring mechanism.

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