Farmers Win an Exemption From Sanctions Against India, Pakistan

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.

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 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 agricultural products from the sanctions for one year.