Capital-Market Access: New Frontier in the Sanctions Debate

Gary Hufbauer and Barbara Oegg
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Barbara Oegg: Peterson Institute for International Economics

No PB02-06, Policy Briefs from Peterson Institute for International Economics

Abstract: The House and Senate will soon meet in conference to decide whether to enact unprecedented sanctions that would deny access to US capital markets to foreign companies that do business with a sanctioned nation. The narrow objective of the Sudan Peace Act--the House version of which includes these capital-market sanctions--is to persuade the Sudanese government to enter into peace negotiations. Its broader but unstated objective is to enlarge the scope of "acceptable" sanctions. This is a new idea, a bad idea, and a frontier that should not be crossed.

Date: 2002-05
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