Trade sanctions on North Korea set to tighten

The US’ Senate Foreign Relations Committee has approved legislation to tighten sanctions against North Korea following its latest nuclear test explosion.

Exports of several types of goods that are currently sold to the Asian country look set to be curbed.

Equipment and commodities

The bill specifically bans foreign assistance to any country that provides lethal military equipment to North Korea, andtargets Pyongyang’s trade in key industrial commodities.

It would also require the investigation and punishment of those who knowingly import into North Korea any goods associated with weapons of mass destruction.

Tougher approach

The bipartisan measure expands on recently passed legislation to curb supplies of hard currency Pyongyang needs for its weapons programmes.

The bill requires approval from both chambers of Congress before going back to President Barack Obama’s administration for approval.

Existing sanctions

Sanctions already imposed on North Korea by the US and UN resolutions include the prohibition of trading in weapons and importing luxury goods.

The UN Security Council is also contemplating tougher sanctions on North Korea in the wake of its 6 January nuclear test.

Chinese view

China, North Korea’s most important ally, chief trading partner and a key source of economic assistance, appears reluctant to support tougher sanctions.

Beijing is also likely to disapprove of US sanctions that would have a negative impact on Chinese banks and companies.

Categories: Trade Based Financial crimes News

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