US eases North Sudan trade regulations

By Toby Collins

October 17, 2011 (LONDON) – The US Department of the Treasury Office of Foreign Assets Control (OFAC) on 12 October announced the liberalisation of regulations imposed upon US companies exporting food products to Sudan and Iran.

Now, dependent on certain stipulations; such as non-involvement with military enterprises, US companies can freely sell covered food products to both countries on the State Sponsors of Terrorism list.

Sudan and Iran are joined on the list by Cuba and Syria as countries which “have repeatedly provided support for acts of international terrorism.” Placement on the list results in a country having restricted trade with the US.

However, an easing of pressure at a time of such diplomatic tension, particularly between the US and Iran, appears to be less a move towards a normalisation of relations, rather a pragmatic streamlining of regulation.

On 11 October an alleged, foiled Iranian plot to assassinate a Saudi diplomat led to a ratcheting up of US rhetoric and the secretary of state, Hilary Clinton to call upon other countries to impose harsh sanctions on Iran.

There have been suggestions that the US plans to offer an easing of trade sanctions and increased aid as incentive for reduced hostilities in Blue Nile and South Kordofan states, where Khartoum’s forces are at war with the Sudan People’s Liberation Movement northern sector.

Khartoum was keen to point out that the US has a history of reneging on such promises.

The price of food products in Sudan, as part of a wider economic downturn, have contributed to recent protests on the streets of Khartoum.

With the secession of South Sudan in July, Sudan lost the majority of its oilfields and therefore a large proportion of its income. In conjunction with a global recession, the Sudanese economy is in a state of decline.

(ST)