Business, Legal & Accounting Glossary
Economic sanctions are imposed on a country by another country or a group of countries for varied reasons. Sanctions can relate to trade barriers, tariffs, import or export quotas, and import duties. A country on which economic sanctions have been imposed usually retaliates by imposing counter economic sanctions. For instance, in 2002 the US imposed import tariffs on steel that provoked the European Union into delivering a retaliatory, tariff threat on US goods. Economic sanctions are not always a consequence of economic considerations.
Economic sanctions were earlier used to penalize a nation that refuses to follow international norms and laws. In 1998, economic sanctions were imposed on India as an aftermath of nuclear tests carried out by it. Sanctions on a particular country can also lead to a severe humanitarian crisis, as has been observed in Iraq. Opinions are divided over the efficacy of economic sanctions and whether they achieve the desired purpose.
Trade barriers are laws, regulations, and policies that a national government imposes to protect domestic goods. Trade barriers can also help in promoting the export of any particular domestic product or products.
In 1998, India conducted nuclear tests that led to certain economic sanctions being imposed on them. Japan and the US were two countries who imposed economic sanctions on India following a second round of nuclear tests.
The UN imposed several economic sanctions on Iraq after the Gulf war was over. Economic sanctions stayed effective until May 2003. A World Health Organization study revealed that a humanitarian crisis had developed in Iraq with nearly 800,000 children aged five years or less being malnourished.
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This glossary post was last updated: 26th March, 2020 | 2 Views.