ECONOMIC SANCTIONS

2004 International Law Update, Volume 10, Number 9 (September)

Written By: Professor John R. Schmertz and Mike Meier




By Executive Order, the U.S. President has removed many non-statutory economic sanctions against Libya in light of latter's cooperation in disclosing and eliminating its nuclear and chemical weapons programs

According to the U.S. State Department, the President issued an Executive Order on January 20, 2004 that takes away a number of restrictions he had imposed on Libya. For example, the Order ends the National Emergency announced in 1986 under the International Emergency Economic Powers Act (IEEPA).

It also abolishes economic curbs on aviation services with Libya, allowing direct scheduled air service and regular passenger charter flights. In addition, the Order unblocks about $1.3 billion in assets frozen under the Libya sanctions program as it applied to both Libyan and non Libyan entities.

During 2004, Libya has been working closely with several international organizations such as the International Atomic Energy Agency (IAEA) and the Organization for the Prohibition of Chemical Weapons (OPIC). Furthermore, Libya has asked the United States and the United Kingdom for their help in "transparently and verifiably" doing away with its weapons of mass destruction and its MTCR class missile programs.

On the nuclear front, Libya has enabled the removal of all critical elements of its hitherto undeclared nuclear programs. It has also started cooperating with the international community to remove its highly enriched uranium and has agreed to alter its reactor at Tajura to run on low enriched uranium fuel. Finally, Libya has signed and is carrying out the IAEA Additional Protocol and has agreed to allow unimpeded site access by international personnel.

Furthermore, Libya has acceded to the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction with Annexes of April 29, 1997 [Jan 13, 1993, 32 I.L.M. 800, entered into force April 29, 1997] Moreover, it has presented a declaration of its chemical agents to the Organization for the Prohibition of Chemical Weapons (OPC).

On the other hand, ending the national emergency will not affect a wide variety of statutory sanctions imposed on Libya. For instance, it remains labeled as a "State Sponsor of Terrorism" under Section 620A of the Foreign Assistance Act. Moreover, strictures laid down by Section 40 of the Arms Export Control Act and Section 6(j) of the Export Administration Act of 1979 (exports of certain items on the Commodity Control List), as well as other similar constraints, continue to apply to Libya.

Citation: Fact Sheet No. 2004/1001, U.S. State Department, Office of Spokesman, Washington, D.C.; Monday, September 20, 2004.


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