Fact Sheet: India and Pakistan Sanctions
Released by the Bureau of Economic and Agricultural Affairs
The United States imposed sanctions on India and Pakistan as a result of their nuclear tests in May. In imposing these sanctions, we seek:
- to send a strong message to would-be nuclear testers;
- to have maximum influence on Indian and Pakistani behavior;
- to target the governments, rather than the people; and,
- to minimize the damage to other U.S. interests.
Our goals are that India and Pakistan:
- halt further nuclear testing;
- sign the Comprehensive Test Ban Treaty (CTBT) immediately and without conditions;
- not deploy or test missiles or nuclear weapons;
- cut off fissile material production for nuclear weapons;
- cooperate in Fissile Material Cut-off Treaty (FMCT) negotiations in Geneva;
- maintain and formalize restraints on sharing sensitive goods and technologies with other countries; and,
- reduce bilateral tensions, including Kashmir.
Accordingly, the United States:
Terminated or suspended foreign assistance unde the Foreign Assistance Act, with exceptions provided by law (e.g., humanitarian assistance, food, or other agricultural commodities).
--$21 million in economic development assistance and housing guarantee authority for India terminated.
--$6 million Greenhouse Gas program in India suspended.
--Trade Development Agency will not consider new projects.
--Most assistance to Pakistan had already been prohibited.
Terminated foreign military sales under the Arms Export Control Act, and revoked licenses for the commercial sale of any item on the U.S. munitions list.
--Suspended delivery of previously approved defense articles and services to India.
Halted any new commitments of USG credits and credit guarantees by USG entities (EXIM, OPIC, CCC).
--The Administration will support legislation to permit CCC credits for food and agricultural commodities.
--OPIC had only recently reopened in Pakistan; however, India was one of OPIC's top five countries receiving an average of $300 million annually in OPIC support.
--EXIM had only recently reopened in Pakistan with one expression of interest pending for $1.1 million; $500 million in pending financing in India will not go forward.
Gained G-8 support to postpone consideration of non-basic human needs (BHN) loans for India and Pakistan by the International Financial Institutions (IFI) to bolster the effect of the Glenn amendment requirement that the U.S. oppose non-BHN IFI loans.
--$1.17 billion in IFI lending postponed for India.
--although no IFI loans for Pakistan have been presented for board consideration, $25 million in IMF assistance has been postponed for failure to meet economic benchmarks.
Will issue Executive Orders to prohibit U.S. banks from extending loans or credits to the Governments of India and Pakistan.
Will deny export of all dual use items controlled for nuclear or missile reasons. Will presume denial for all other dual-use exports to entities involved in nuclear or missile programs.
--will toughen existing controls for government military entities;
--will continue denial of nuclear exports licensed by NRC or authorized by DOE; and
--will continue to favorably consider on a case-by-case basis other transactions which do not support nuclear, missile, or inappropriate military activities.
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