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 country’s 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.

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 country’s 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.

ii. Travelling bans for the citizens and the government officials of the targeted country.

iii. Diplomatic relation restriction or political restrictions.iv. Social and cultural relation restrictions if do exist.v. Military sanctions.vi. Sports sanctions.vii. Technical sanctionsviii. 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 country’s government

to change its objectionable policies in today’s 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 country’s 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 country’s 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 partner’s 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.