Advertisement

Farmers Freed From India-Pakistan Sanctions

Share
<i> From Times Wire Services</i>

Declaring that U.S. foreign policy shouldn’t hurt farmers, President Clinton signed legislation exempting agricultural products from sanctions imposed on Pakistan and India, and the Senate later voted to give the president broad authority to temporarily lift all economic sanctions against the two countries.

Clinton signed the farm measure late Tuesday, after the House and Senate rushed the bill through. The move cleared the way for the United States to bid on a 350,000-ton purchase of wheat by Pakistan, the third-ranking buyer of the American produce. Pakistan was to open those bids Wednesday.

“We need to make sure that our sanctions policy furthers our foreign policy goals without imposing undue burdens on our farmers,” Clinton said.

Advertisement

On a voice vote Wednesday, the Senate approved legislation by Kansas Republican Sens. Pat Roberts and Sam Brownback allowing Clinton to waive for up to nine months the nonmilitary sanctions imposed by law after the two countries conducted nuclear tests in May.

The Senate was also debating legislation by Sen. Richard G. Lugar (R-Ind.) that would impose a two-year limit on future U.S. sanctions, allow permanent presidential waiver authority and exempt food, medicine and medical equipment.

“If we are not more thoughtful about our trade policy and sanctions policy, we will face a devastating loss of jobs,” Lugar said.

The India-Pakistan sanctions would have prevented sales of farm goods under a credit guarantee program just as wheat prices are hovering at seven-year lows and farm incomes are dropping. Food and humanitarian aid were already exempt.

Noting that 30% of U.S. farm products are sold abroad, Clinton said “we should look for ways to expand our agricultural exports, not restrict them.”

The legislation, which drew broad bipartisan support, exempts the credits and other agricultural products from the sanctions for one year. Pakistan had $250 million and India $20 million in credit under the Agriculture Department program this year.

Advertisement

Farm state leaders argued Pakistan would easily find another supplier, leaving American farmers in the lurch. Farm groups were cheered by restoration of credits.

“Good move!” said Linda Jager of U.S. Wheat Associates, which promotes wheat exports. “It’s very good news. It’s very important to farmers in the Pacific Northwest.”

In Islamabad, the Foreign Ministry said Pakistan welcomed steps toward waiver authority.

“This is a very positive step which should eventually lead to the lifting of all sanctions,” a Foreign Ministry spokesman said.

Advertisement