Every country has its own specialization producing at
least one commodity that other countries are unable to and there trade occurs
between countries.
Even though international trade has disadvantages, countries
can also benefit from it in a number of ways, such as increasing income,
exploring untapped resources, gaining global standing around the world and also
gaining more trust from the countries they are in cooperation with. However,
some countries struggle to trade with others which is commonly a result of social
and political issues.
A prohibition of any economic activity, both export
and import, by a country against another country is called embargo, which is
similar to an economic or trade sanction. There have been, and are, many
countries under embargoes around the world:
Britain
and France by The US in 1807
It was enacted
by Thomas Jefferson, the second president of the United States, against Britain
and France in 1807. Jefferson imposed the embargo by prohibiting US vessels
from trading with the European nations, even though the US had to face the
failure with big amounts of financial loss.
Cuba
by The US in 1962
The embargo by
the US on Cuba was caused by Cuba’s ideology which drew support from the Soviet
during the Cold War, and was also followed by the Cuban Missile Crisis in 1962.
Moreover, the embargo under JFK’s administration lasted for four decades and
continues to this day.
Iran
by the US and its allies 1979
The US imposed both
embargoes and sanctions nearing the intensity of an embargo on Iran not only in
1979, but also 1987, 1995, 2010 and 2011.
It was not only economic or trade, but with the embargo also came
military sanctions. The reason was to prevent the progress of illicit nuclear
activities and Iran’s nuclear program. Several of these embargoes were also
imposed by the UN and some other countries.
North
Korea by UN, US and EU in 2006
After the attack
in 1950 by North Korea on South Korea, the US imposed an embargo that totally
cut off North Korea’s economic activities with the US. Also, it was followed, after years, by
another embargo by the UN and EU in 2006 due to North Korea’s nuclear
possessions.
Indonesia
by Australia in 2011
Indonesia was
the top buyer of Australian beef, but it did not stop Australia to enact the
embargo on Indonesia in 2011 based on animal cruelty, even though it caused
Australia the loss of 19% of its annual cattle sales.
As you can see now from the examples as listed above,
embargoes are used as political trade tools mainly
by the UN and EU to maintain
not only international peace and security, but also to promote international
cooperation. However, embargoes hinder the country that the embargo is being
enacted on.
By : Dewi Mulyasari - 1701345645
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