Economic experts urge Sudan to change policies to lift US sanctions
November 8, 2014 (KHARTOUM) – Several economic experts have appealed on the Sudanese government to change its policies to lift the US sanctions imposed on the banking and industrial sectors.
They called for the need to initiate a dialogue between the Sudanese political and civil society and the international community to ease the impact of sanctions on the Sudanese people.
The economist, who spoke at a symposium on the impact of US sanctions on Sudan organised jointly by Sudaniyat Economists and the European Commission in Khartoum last Monday, pointed to the significant impact of the sanctions on the drug production and industrial private sector.
They also mentioned the impact of the refusal of foreign banks to deal with Sudanese banks.
The member of the external agreements department at the Sudanese Businessmen Union (SBU), Mohamed Suleiman, said the US imposed the sanctions on Sudan in 1997 due to Khartoum’s support for international terrorism, violations of human rights, and attempting to destabilise neighbouring governments, such as the assassination attempt on the life of former Egyptian president Hosni Mubarak .
He said the sanctions were designed to restrict foreign investments, bans defence exports and stops trade activities between the two countries.
Suleiman said the US black list currently includes 106 Sudanese companies including the Greater Nile Petroleum Operating Company (GNPOC) besides personal sanctions on several government officials including the governor of North Kordofan state, Ahmed Haroun, and the director of military intelligence, Awad Ibn Ouf.
He added that the most affected sectors by the sanctions include oil and mining, chemical and pharmaceuticals, transportation, engineering, suggesting searching for alternative markets and using currencies other than the US dollar in trade exchange.
Economist, Mohamed Rashad, said the sanctions on the banking sector have direct effects on trade activities between Sudan and the outside world besides expatriates’ remittances and purchases of the public and private sectors.
He pointed to high cost of circumventing the sanctions, saying the number of foreign banks refusing to deal with Sudanese banks is continuously increasing because they suffer financial penalties for violating the US sanctions.
He also mentioned the rampant corruption and lack of transparency in the Sudanese banking system.
Rashad said the lifting of the US sanctions is contingent upon changing the government policies, expecting further economic difficulties and increase of the inflation rate besides decline in the value of the Sudanese pound.
The representative of the chemical and pharmaceutical chamber, for his part, pointed to the significant impact of the sanctions on importing raw materials and medicines besides difficulties in banking transfers, saying that 800 workers are threatened to be laid off if production stops completely.
The speakers ruled out that sanctions will be eased or lifted unless the government changes its policies, suggesting launching constructive dialogue between the European Union and the US and the Sudanese civil society in order to avoid the negative impact of the sanctions.
They also called for launching a campaign to put pressure on the government to follow international standards with regard to liberties and human rights and other necessary requirements to lift or ease the sanctions.
The EU representative stressed the importance of the role of the political and civil society in highlighting social and economic impact of such issues, saying this will give direction to the EU and US future decisions.
The EC economic advisor told Sudan Tribune the Sudanese government must make certain political steps in order to avoid further economic deterioration, saying the Sudanese economy suffered from structural distortions before and after the imposition of sanctions.
In 2010, the US announced it was easing sanctions on agriculture equipment and services which allowed half a dozen companies to obtain export licenses.
Khartoum suspended talks with Washington over bilateral relations since December 2013, following American pressures on foreign financial institutions including Gulf banks on to observe US sanctions on Sudan.
However, the two countries are expected to resume discussions soon as agreed in a telephone conservation between top diplomats of the two countries at the end of October.
Sudan is also on the US list of states that sponsor terrorism since 1993 even though the two countries have strengthened their counter-terrorism cooperation since September 2001 attacks on Washington and New York.
(ST)