Embargo
An embargo is an economic tool employed by governments to restrict trade, commerce, and investment with another nation, often as a form of punishment or to exert pressure. These measures are a specific type of economic sanction, which have been utilized for thousands of years but gained prominence in diplomatic practices during the twentieth and twenty-first centuries. While embargoes can be enacted by individual countries, such as the United States, they can also be established through international organizations like the United Nations, which requires a voting process among member states.
True embargoes completely halt economic activity with the targeted country, contrasting with strategic embargoes that may only limit certain types of trade, such as arms. Despite their widespread use, studies suggest that embargoes often fall short of achieving their intended goals, as countries may find ways to circumvent these measures. Additionally, embargoes differ from blockades, which are more aggressive and entail a complete cessation of trade. For example, the U.S. has implemented embargoes against countries like Cuba and North Korea, while the UN has enforced arms embargoes in conflict-prone regions. Overall, while embargoes can signal international disapproval and encourage diplomatic dialogue, their effectiveness in changing a nation's behavior is often debated.
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Embargo
An embargo is an economic tool used by governments as a form of punishment against other governments. In an embargo, one government or entity restricts commerce, trade, and investment with another government or entity. An embargo is a type of economic sanction, which is a toll used by one government to punish or try to pressure other governments. Embargoes have existed for thousands of years, but they became a popular diplomacy tool in the twentieth and twenty-first centuries. Although embargoes are often popular forms of diplomacy, they are not very effective in changing their targets' behaviors. An embargo is not the same as a blockade, which is considered undiplomatic and aggressive.
Background
Trade between different groups has occurred throughout human history, and international trade is as old as nations themselves. In the twenty-first century advances in transportation, communication, and other technology have made international trade more important than ever. Since international trade has become so critical to countries' economies, governments and other institutions use trade and economic tools to punish or influence other nations. Economic sanctions have been used for thousands of years to punish other political entities for their actions. In 432 BCE, the Athenian government began an embargo against the city-state of Megara. The embargo was meant to punish Megara for actions Athens did not like. Other governments and institutions have used economic sanctions such as embargoes since that time.
Overview
A true economic embargo stops all commerce, trade, and investment in a particular country. These embargoes are usually enacted and enforced by federal governments. In the United States, the president has the power to enact embargoes during times of war or times of national crisis because of the Trading with the Enemy Act (1917) and the International Emergency Economic Powers Act (1977). Sometimes embargoes are developed or enforced by other groups. For example, the United Nations (UN)—an organization that helps nearly all the countries of the world conduct diplomacy—can develop embargoes and other economic sanctions. The UN enacts embargoes through a voting process that includes a number of member states. National governments, such as the US government, can enforce embargoes by punishing companies or citizens that break the embargoes. Organizations such as the UN do not have many powers to punish countries that do not follow embargoes, but the organization can bring together a coalition of national governments that could punish other governments for failures to comply.
Although economic sanctions have been used for thousands of years, they became a common diplomatic tool only in the twentieth century. After World War II (1939–1945) and the creation of the UN, countries worked together to try to influence particular governments. The UN relied on economic sanctions to punish and influence other countries. The United States has enacted a number of embargoes, both partial and total, throughout its history. In 1950, the United States imposed an embargo against North Korea, a country it eventually went to war with. During the Cold War (1947–1991), the United States sanctioned governments in South America in the hope of stopping the spread of communism in the area. In 1962, the United States put a full embargo in place against Cuba to punish the government, in part, for trading with the Soviet Union, the United States' main opponent in the Cold War. In the 1990s, the US government put an embargo in place against Sudan for human rights violations and charges of aiding terrorists. After Russia's invasion of Ukraine in 2022, the United States imposed a number of sanctions on Russian businesses and affiliates.
A true embargo stops all economic activity with a particular country or government, but limited embargoes also exist. These are called strategic embargoes. One of the most common strategic embargoes is one against weapons. For example, the UN has a policy of using what it calls arms embargoes. These embargoes are meant to prevent certain governments from procuring more weapons. The UN member states can suggest and request arms embargoes against countries that are engaged in violence and war. The point of the embargo is usually to prevent more weapons from escalating the violence in a particular region. Some arms embargoes are put in place to prevent a particular country from becoming more of a threat to the international community. These embargoes are also meant to persuade the affected governments to act differently. In 2024, the United Nations placed an arms embargo on Israel to prevent violation of international law in Gaza. The United States and other governments have also imposed economic sanctions and embargoes against particular people whom the government sees as a threat or whom the government wants to punish.
Despite the popularity of embargoes and economic sanctions, data seems to show that they are relatively ineffective. Most countries can circumvent embargoes by doing business with other countries or regions. It is very difficult, and maybe impossible, to completely cut off an entire country's economy from the rest of the modern world. Just as general embargoes are often unsuccessful, specific embargoes are also relatively ineffective. According to the BBC, a study conducted by the Stockholm International Peace Research Institute in 2007 found that UN weapons embargoes were successful only about 25 percent of the time. The UN passed twenty-seven arms embargoes between the 1990s and the late 2000s. Even though embargoes are not always actually effective, some diplomats still see them as useful because they allow countries to show they are committed to challenging other governments' actions without having to resort to military force. These politicians believe that embargoes could help prevent countries from starting wars.
Embargoes are sometimes conflated with blockades, but the two are different. Embargoes are economic sanctions that prohibit trade by law. Blockades happen when a government or an armed force entirely blocks trade from all nations from occurring with a particular country. Historically blockades have most often happened when ships block other ships from entering or exiting ports. However, blockades can also occur on land. For example, Israel has created blockades that have stopped third parties from trading with Gaza. Blockades are often seen as aggressive and can even be interpreted as an act of war. They are much more harmful to countries since they do not allow any trade to take place.
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