What is the purpose of trade sanctions?
The purpose of trade sanctions is to encourage a particular behavior or action from a foreign government or business by making them subject to economic pressure. These sanctions may include limiting or prohibiting the export of goods and services, restricting access to financial and other resources, or imposing economic penalties. The North Carolina Department of Justice provides a comprehensive overview of the various trade sanctions in place for North Carolina. For instance, the Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions based on U.S. foreign policy objectives. OFAC sanctions target countries, organizations, and individuals engaged in terrorist activities, nuclear proliferation, and drug trafficking. Furthermore, the US Trade Representative has authority to investigate and impose trade sanctions on foreign countries for violating trade agreements and other trade-related laws. Such sanctions may include tariffs, quotas, embargoes and other trading restrictions. The purpose of trade sanctions is to ensure fair and open markets for global trade and to protect national economic security. They also are used to punish countries that act against the interests of other countries or international organizations, such as the United Nations. Through trade sanctions, countries are encouraged to comply with international laws and regulations.
Related FAQs
What is the European Union (EU)?What are the key differences between Customs and Tariff laws?
What is the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs)?
What is the WTO Agreement on Trade-Related Investment Measures (TRIMs)?
What are the major obstacles to trade liberalization?
What are the disadvantages of increasing trade barriers?
What is the difference between an import quota and a tariff?
What are the implications of the WTO Agreement on Agriculture?
What is the most common method to resolve international trade disputes?
What is the role of the World Trade Organization in protecting intellectual property rights?
Related Blog Posts
Introduction to International Trade Law & Its Benefits - Key Considerations for Businesses - July 31, 2023A Comprehensive Overview of WTO Rules and Regulations - August 7, 2023
Navigating the Tangled Web of International Trade Regulation - August 14, 2023
The Different Types of International Trade Agreements - August 21, 2023
Using Investment Treaties to Facilitate Cross-Border Transactions - August 28, 2023