Embargo – who else does not know about this type of sanctions?

10 min read
Embargo – who else does not know about this type of sanctions?
Picture: Iurii Kuzo | Dreamstime
Share

There are frequent references to the embargo in news reports or newspaper publications. In principle, the essence of this term is clear, although it is worth learning about the nuances of this procedure in more detail.

Especially now, this aspect is especially relevant, because it implies different types of bans imposed against the background of relations between countries. Embargo types are diverse and each option is applied to specific situations.

Consider what an embargo is, what are its main varieties now. Let’s analyze the history of appearance, tasks and goals of the embargo. We will study the reasons for the introduction of this ban, as well as get acquainted with a real example of a political and economic blockade.

How the embargo appeared

In historical documents, for the first time, facts about the embargo begin to appear from 432 BC. e. Naturally, the term itself did not exist in those distant times, but the format of the punishment itself was already used.
Protectionism is the foreign trade policy of a successful state
Protectionism is the foreign trade policy of a successful state
15 min read

For example, Greece then introduced a ban that did not allow any Magar merchant to enter the ports of the state. There are plenty of reasons for this decision:

  • Athenian ambassador killed;
  • The mass catch of commercial fish species increased near the Greek coast.

If you look at the most famous embargoes, then the situation of 1774 immediately attracts attention. The American colonies refused to accept goods imported by Great Britain. For Americans, this ban almost turned into dire consequences with the destruction of the nascent state structure.

What is an embargo

Initially, the term appeared among the Spaniards (embargo) and gradually spreading came into specific use in other countries. The direct translation of this word is a prohibition, an arrest.
Embargo
Picture: Dreamstime

The use of the term embargo has been greatly narrowed today. It is used only when describing, announcing or commenting on prohibitions and blockades at the level of international relations.

The original essence of this word was to prohibit ships from the sea from entering or leaving certain ports. Therefore, the first popular ways to use such a measure of punishment were the detention of ships of a direct enemy when hostilities were unleashed. The result of an embargo in such situations is the complete confiscation of the vessel and all contents.

Bitcoin – the currency of the future?
Bitcoin – the currency of the future?
17 min read

Later, the meaning of the term became more extensive. Prohibitions and blockades also moved to land, and methods with final decisions began to be determined by any type of relationship between countries.

Modern types of embargo

Depending on the reasons (economic, political), bans on certain activities often differ in a number of parameters and conditions. Therefore, modern types of embargoes are different.

General classification

Here it is customary to distribute blockades and prohibitions into 5 basic categories. They are not specific, but reflect the general strategy of the embargo being introduced.

  • The state itself initiates measures prohibiting the importation into its territory of certain goods, products, products. For example, this solution is resorted to if necessary, to protect domestic producers. For highly competitive products, deliveries are blocked, which allows local companies to develop and expand their activities. A good example of this type of embargo is the decision of the Kazakh authorities in 2015 to ban the import of Russian gasoline. This fuel was cheaper, so local companies were losing money. As soon as the restrictions began to work, the demand for their gasoline began to grow.
  • Other countries prohibit the importation of their own goods into a certain country. This type of embargo is applied when it is necessary to greatly reduce the supply of high-tech products and devices used in key sectors of the economy. Here the main goal of the embargo is to create optimal conditions with advantages in order to win the competition.
  • Sometimes prohibitions are expressed in specific terms. A vivid illustration of this type of embargo is the closure of the entrance to the seaports to the ships of a particular state.
  • Partial or complete blockade of trade transactions with several or one country. Mostly behind such measures are the decisions of international organizations. Even the UN Charter contains special clauses defining punitive measures against states that cause damage to other independent territories or peoples.
  • It happens that an embargo is introduced by a country to punish the industry or agricultural sector of another state. This strategy is most effective if the initiator is the party that provides a large market for the punished counterparty.
Black swan – black consequences
Black swan – black consequences
7 min read

These modern types of embargoes are the most widespread, despite the relative complexity of the organization of all procedures. However, this gradation option is not the only one.

Types of embargoes for specific goods and industries

Restrictive measures are not always broad and affect several industrial or economic sectors at once. It happens that for greater clarity, the embargo is divided into types according to the types of goods or industrial areas.

Embargo
Picture: Mira Agron | Dreamstime
  • Trade embargo – actions are directed to create a ban on the sale / purchase of certain products in order to destabilize the financial sector of the enemy.
  • Non-state bans is a separate embargo model where interstate relations are not involved. This includes blocking trade operations with terrorists, sects, people of a certain race, etc.
  • Military-strategic embargo – packages of sanctions measures that should lead to militaristic advantages for the initiator. With the dominance of one side in the field of military technology, there is a logical desire to protect secrets and prevent their leakage. Here, then, a military-strategic embargo is introduced on any types of goods and technologies related to military operations or espionage.
  • Sanitary embargo are methods of restriction and blocking used to protect plants, animals and people. This is an important kind of prohibition necessary to localize or prevent the spread of especially dangerous infections.
  • Resource embargo is a well-known and effective approach that can destroy the economic system and political structure of dependent countries. It is easy to force states that do not have natural deposits of some significant raw material – gas, iron ore, oil, etc.
It is necessary to take into account some aspects that do not allow the embargo on certain goods. First of all, these conditions relate to goods that are vital for people – a number of essential goods, medicines, food.
Globalization: Causes, Consequences, Problems, Role in the World Economy
Globalization: Causes, Consequences, Problems, Role in the World Economy
9 min read

There are cases of incomplete embargoes where the prohibitions are not absolute. There is no blocking of the entire flow of a specific product. Instead of such a mechanism, tactics are used with the allocation of quotas for goods, the flow of which must be significantly reduced.

Suppliers may not bring into an embargoed country more than is specified by special regulations.

Embargo options by duration

There is an interesting gradation of restrictive measures based on the principle of division according to the duration of their action.

  • Permanent – there are no provisions that determine the time point or conditions for lifting the embargo. That is, it is introduced indefinitely. Actually not applied now.
  • Prohibitions until further notice. The effects achieved are analyzed by the pressure initiator with constant regularity. Based on the analysis of the assigned criteria, a conclusion is made on the appropriateness of further impact. As soon as the necessary results are obtained, the restrictions are usually lifted.
  • Temporary embargo is the most commonly used model. Almost always, bans are associated with political upheavals or situations requiring the implementation of sanitary norms and rules.
Fidel Castro – Immortal Comandante
Fidel Castro – Immortal Comandante
9 min read

Restrictive measures do not always have a strictly economic orientation. A widespread type of embargo is to reduce the range of contacts between diplomats. Termination of cooperation or strict limits in the exchange of scientific data and technologies are often involved. There may be restrictions on contacts in the field of culture and art.

It is possible to divide the embargo into types – unofficial and official. The first model is distinguished by purely oral orders, while the second provides for the adoption of official documents. The unofficial embargo is characterized by the absence of clear explanations, terms and reasons.

Objectives and goals of the embargo

Almost always, bans or restrictions are resorted to in order to harm another state through the deterioration of the political and economic situation. Sometimes, with the help of pressure measures, there is a coercion to accept individual requirements that are beneficial to the side pushing its course.

Embargo
Picture: Framestock Footages | Dreamstime
Embargo results in two ways. Firstly, economic progress is slowing down in this state. And secondly, the authorities of this oppressed country are taking decisions that contribute to import substitution and the development of their own industries.

The introduction of an embargo is often a very costly set of measures that are used to subjugate the other side. When the attacks can be dealt with, the financial expenses of the initiator are not reimbursed in any way. Although restrictive measures are being observed today, where the organizers of pressure simultaneously confiscate the assets, property and money of the country they oppose.

Vladimir Putin – President of the Russian Federation
Vladimir Putin – President of the Russian Federation
10 min read

However, there are tactics whose conditions make it possible to achieve the desired results from the embargo.

  • Unexpected denials – The target fails to prepare to mitigate adverse effects. Most importantly, the possibility of a quick reorientation of existing reserves and adjustment of the production of products blocked for import should be excluded.
  • A state subject to restrictive measures must be completely dependent on imported resources or imported goods. Here we need conditions that guarantee the absence of a change of importers.
  • Countries or politico-military associations that initiate an embargo may be able to withstand the rebound effect or not face the risk of serious financial losses.

Top 5 reasons for the embargo

Prohibitions can be imposed due to various reasons – justified or unreasonable. But the following main 5 reasons for the embargo are mainly involved.

  1. As a means to implement active political pressure. Maximum effectiveness is achieved when bans are imposed against states with weak economies.
  2. Countries can independently refuse to supply certain goods and products, developing their production in these areas. An embargo on products here will be ineffective, so the initiators begin to additionally attack related industries.
  3. In light of recent developments caused by COVID-19, restrictive measures have again become necessary to protect the health of the population. This sanitary embargo is imposed on states and individual regions in which there is a serious epidemiological danger. In fact, bacteria, fungi, and harmful protozoa can spread on goods exported from there.
  4. Under the pretext of national security, some countries like to impose various restrictions.
  5. Interstate conflicts are considered ideal reasons for imposing an embargo. For example, the border conflict between Macedonia and Greece in 1995 led to the announcement of a series of bans against the former country.
Joe Biden – 46th President of the United States
Joe Biden – 46th President of the United States
11 min read
Here you can include another 6th reason for the embargo – concern for the environment. In 1998, pressure measures were introduced against Norway by the United States due to the refusal of goods for the production of which the northern country hunted seals. The explanation of the prohibitions was elementary – concern for the abundance of marine mammals in the region.

Resource embargo – 1973 example

The following precedent shows very clearly the effect of prohibitive measures. This is a real case with a very curious series of effects.

Embargo
Picture: Waingro | Dreamstime

Israel in the middle of 1973 quarreled heavily with the authorities of Egypt and Syria. Tensions grew and, as always, the United States became a participant in the conflict, taking the side of the Israelis.

OPEC member states quickly imposed an embargo on oil exports to Europe and the United States. Almost immediately, on the commodity exchange, the price of oil rose from $3.10 to $12.50. Of course, domestic gasoline prices in the US immediately increased 4.5 times.

The situation was complicated by the fact that at that time the Americans tried to use powerful vehicles that consume a lot of gasoline. People quickly felt this circumstance.

Jacque Fresco – an outstanding scientist of our time
Jacque Fresco – an outstanding scientist of our time
7 min read

Immediately, the consequences of rising oil prices became beneficial for the Japanese automotive industry. They produced a line of economical cars with low gas mileage. The industry has received a positive impetus and benefits for development.

In the United States, car manufacturers took stock of the situation and shifted their industry towards the production of fuel-efficient cars. Their products adequately competed with the products of the Japanese automobile industry.

It turns out that the embargo on exported oil eventually stimulated the development of the automotive industry in the United States. It contributed to the economic growth of this country.

Conclusion

Life under the yoke of the embargo is not easy. You should be aware of the reasons for its introduction, as well as understand the possible timing of lifting bans or restrictions. If the embargo mechanism and the conditions for its lifting are known, then the understanding of international interactions becomes much clearer. This helps to avoid many conflicts and the development of globally dangerous events.

Article rating
0.0
0 Ratings
Rate this article
Ratmir Belov
Please write your opinion on this topic:
avatar
  Subscribe  
Notify of
Ratmir Belov
Read my other articles:
Content Rate it Comments
Share