These actions have provided an increased level of hope among farmers and ranchers that the agricultural impact of U.S. unilateral trade actions will be more fully considered before their imposition, and existing sanctions will be modified to allow the sale of farm products. Specifically, last year's exemption of agricultural products from the sanctions imposed on India and Pakistan resulted in the immediate sale of wheat to Pakistan and the ability to continue our agricultural trade relationship with that important customer. A Senate task force on sanctions was also established last year to consider the effectiveness of unilateral trade actions in furthering U.S. policy objectives overseas and potential modifications to sanctions policy to increase flexibility in their application. Although the task force failed to endorse specific policy recommendations, the discussions themselves advanced understanding of both the limited foreign policy achievements and the negative domestic impact of such actions. Within the last month, the Clinton Administration announced that it is relaxing administratively imposed sanctions on Iran, Libya and Sudan.
Sanctions impact agricultural producers in several ways that have both short and long term affects.
More must be done if the U.S. is to fully capitalize on the revised sanctions conditions as part of a foreign policy strategy of engagement and new recognition of the limitations of certain trade restrictions in a globally competitive marketplace. First, legislation should be adopted exempting agricultural products from existing and future unilateral economic sanctions imposed by either Congress or an Administration. Second, regulations governing commercial, guaranteed credit and humanitarian transactions should be clarified and applied in a consistent manner concerning all countries. Third, the U.S. should undertake aggressive actions to restore both the market potential and our reputation as a supplier in those markets where sanctions have been imposed. Finally, while agricultural producers appreciate and support the recent developments that have reduced the negative impact of sanctions, we recognize that this trade element is neither the sole, nor the largest cause of the economic crisis faced by farmers and ranchers today.