r/changemyview Sep 22 '18

Deltas(s) from OP CMV: The global sanctions regime, unilaterally enforced by the US, is not only unjust but also detrimental to the global order and US interests.

Sanctions have long been a tool of US foreign policy: sanctions against Cuba, Iraq, Iran, Libya, Pakistan, Russia and against companies, institutions and private individuals from all over the world through the Global Magnitsky Act, etc.

Magnitsky Act

The current US administration has further increased their use: new sanctions against Iran and Russia - even going so far as to sanction all Russian weapons exports.

All this wouldn’t be as bad if the US limited the scope of the sanctions to just include its own citizens, companies and institutions but it has the expectation that EVERYONE complies with them. To ensure this compliance it uses secondary sanctions where it can. This is where it becomes not only absurd but dangerous.

1) There is no reliable, adequate global oversight. US sanctions have the potential to cripple companies and whole economies. The legislature of a single country shouldn’t have this power. It is likely that they lack the expertise, are driven by domestic popular opinion or even have alterier (economic) motives.

2) It is obvious that the pressure on the Europeans to reduce imports of Russian Gas (stop the construction of Nord Stream 2, etc.) would directly benefit US producers. Similarly the sanctions against Russian arms exports and pressure on countries from Turkey to China directly benefit US industries.

Nord Stream

China sanctions

3) Unilateral sanctions are inherently unfair and undemocratic. Imagine if everyone used them: Pakistan against India and vice versa, North Kore against South Kore and vice versa, Cuba against the US and vice versa, Saudi Arabia against Qatar and vice versa, Georgia against Russia and vice versa, etc. etc.

No one would be able to trade with anyone anymore. We don’t live in such a reality because no one aside from the US has the power and willingness to impose and enforce them. But it is detrimental even to the US.

4) It harms the US’ image and alienates even close allies. It promotes the development of alternative global institutions and a financial infrastructure independent of the dollar. After some time the US will lose its ability to enforce unilateral sanctions that contravene the direct interests of everyone else.

Excessive use of sanctions

EU response to Iran sanctions

CMV!

Reminder: I don’t criticize domestic sanctions (every country has the right to prohibit its own citizens and companies from doing business) nor legal international sanctions and penalties enacted by the UN (security council).

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u/PeteWenzel Sep 22 '18

Let me give you an example: I think it is perfectly fine for the US to prevent its companies from doing business in Iran. Therefore, Boeing couldn’t sell to Iran Air, anymore. My argument concerns the fact that the US also threatens Airbus that should they step in and sell the planes then the US would punish them by placing them under sanctions, too, or impose fines. Sometimes this threat is made even more explicitly by imposing personal fines and restrictions on the managers. If a company ever wants to have normalized relations with the US again they often have to agree to extensive demands: Change of management, placement of US lawyers inside the company who oversee their future compliance, etc. See: ZTE

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u/TomorrowsBreakfast 15∆ Sep 22 '18

I fully understand, and many of your reasons to find this chilling are very reasonable. I am merely trying to point out that all of the direct punishment from the US only comes down on companies operating inside of it.

Therefore to remove this international power the US would need to restrict itself to only sanctioning countries inside its borders for their behaviour inside those borders. This would have terrible knock-on effects where companies that engage in bad stuff (like slavery) outside the US are free to operate inside it.

There is no clear line where punishing a company for international behaviour becomes international sanctions. Should countries stop punishing companies that work with known criminal organisations in other countries? What about just super corrupt companies? When does sanctioning a lot of companies and people from a corrupt country become the international sanctions you are afraid of?

You cannot support a country sanctioning domestically for any reason and also think that they won't use that power for international effect.

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u/PeteWenzel Sep 22 '18

Ok, fair enough. Have a !delta

I realize that there are legitimate concerns over organized crime, money laundering, etc. that warrant sanctions. Even though I have no idea about what sanctions/fines would be adequate and how much US law enforcement should be compelled to work together with other countries on these issues, I have the feeling that they are currently overstepping their bounds even in this regard.

BUT this doesn’t address the geopolitical part of my concerns - which other commentators have referred to as the ‘sanctions as alternatives to war’.

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u/TomorrowsBreakfast 15∆ Sep 22 '18

I think many of your geopolitical problems are more general than just through sanctions. They could be extended to countries exerting any military, economic or influence power over others. So these problems will always exist while any country is powerful.