The European Union (EU) published regulations in response to continued nuclear testing and launches, as completed by the Democratic People’s Republic of Korea using her missile technology. This was because these actions were a threat to international security and peace. The EU imposed restrictive measures on North Korea, aimed at dissuading her from partaking any further militarization, missile, and nuclear power programs. Also, the financial sector was prohibited from transferring funds to and from North Korea, unless authorized in advanced and for predefined purposes. There was also the prohibition of investments between North Korea and any of its close associates and the EU (International Commerce, 2016). The measures imposed by the EU prohibit the exportation and importation of items that could go to enhance the development of the North Korean armed forces. Moreover, member states are required to inspect all cargoes to and from North Korea, ensuring that any aircraft and vessels that flaunt these measures are de-registered. Additionally, North Korea can no longer export such mineral products like coal, gold, and iron into the EU nor can EU member states export aviation fuel to North Korea. Summarily, any representatives who engage in the illegal programs of North Korea and are located in any of the EU member states will be expelled (International Commerce, 2016).
Courtesy of this article, and owing to North Korea’s continued militarization, the financial regulations introduced by the EU include but are not limited to; a ban on private funding for trade to North Korea if the finances can contribute to the illicit programs, in addition to which, any assets, funds, and/or economic resources involved in North Korean nuclear or missile programs or other prohibited activities will be frozen. However, there are exemptions made for particular circumstances, for instance; funds meant to satisfy basic needs shall still be allowed to flow into North Korea. There is an obligation to close all banking accounts, existing branches or subsidiaries owned by North Korea if it is determined that they can support the illicit programs. In addition, any joint ventures and correspondent banking in relationship with North Korea will be closed, consequent to which there is a ban on the opening of banks that closely relate to the EU in North Korea. Pursuant to this, any existing branches of banks with fully fledged operations within the EU shall be terminated. Providing technical or financial assistance either from the EU members to North Korea or from North Korea to EU members is no longer allowed; in addition, investing in North Korea’s mining, refining and chemical industries by the EU has been banned. Furthermore, member states cannot enter into any grant commitments, insurance or concessional loans with the North Korean government, except for projects that will directly enhance development, promote denuclearization or meet the needs of the civilian population. Financial regulations have further restricted the sale of luxury goods to the EU by this country. Generally any form of trade believed to be destined for the manufacturing of weapons in North Korea has been banned respectful to all EU members. However, some nations like Germany and Sweden do not agree to the set measures, and therefore, refuse to isolate North Korea due to their historical relationships.
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In conclusion, it is possible that the sanctions on North Korea will continue to be imposed and toughened, as the situation does not look likely to change. This will be in addition to the various sanctions already put in place against this country; the US and UN had already imposed sanctions on North Korea before the EU took a similar move. These sanctions are meant to ensure that North Korea stops its illicit programs for the manufacture of weapons of mass destruction, as this threatens international peace and security. However, these sanctions also impact directly on the economy of the nations and companies associated with North Korea in terms of business activities. There has been a significant reduction in revenue and profits earned through international trade for some companies and even, for some EU member states. In addition, North Korea is said to continue to face economic difficulties as a result of these sanctions which promise to only but get worse if the country does not stop the aforementioned illegal programs. These sanctions by the EU and other organizations have been established between March and May and the consequences to North Korea and EU member states are yet to be determined.
References
International Commerce (May, 2016). European Union Sanctions against North Korea Update. Retrieved from http://www.hfw.com/downloads/HFW-EU-Sanctions-Against-North-Korea-Update-May%202016.pdf
