United States: U.N. Approves Elimination of Iraq Sanctions

On May 22, 2003, the United Nations Security Council voted unanimously to end its 13-year-old sanctions regime against Iraq. Pursuant to Security Council Resolution 1483, control of Iraq is immediately transferred to a United States and British controlled Coalition Provisional Authority, which will have broad powers to run the country and sell Iraqi oil to finance reconstruction and "other purposes benefiting the people of Iraq."

With the exception of ongoing restrictions on the sale of arms, Resolution 1483 eliminates all prohibitions related to trade and the provision of financial or economic resources to Iraq established by Resolution 661 (1990) and subsequent provisions, including Resolution 778 (1992).

Additional features of Resolution 1483 include:

• An orderly phase-out of the Oil-for-Food program over the next six months.
• The creation of a Development Fund for Iraq, funded by oil export sales, to be held in Iraq's Central Bank.
• The lifting of aviation restrictions.
• A mandate for a new Special Representative of the Secretary General to oversee U.N. relief and reconstruction efforts, and to participate in the political transition to an Iraqi government.

The text of Resolution 1483 is available at:
http://usinfo.state.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=03052205.tlt&t=/products/washfile/newsitem.shtml

Domestic implementation of Resolution 1483 will likely occur later this week when President Bush issues an executive order lifting remaining U.S.-Iraq sanctions and harmonizing U.S. export policy with the new U.N. regime. Although an executive order would take effect immediately, the President will likely direct the Treasury and Commerce Departments to promulgate regulations governing future exports to Iraq.

Prior to Resolution 1483, it had been unclear whether U.S. companies could engage in activities permitted under U.S. law without contravening U.N. sanctions. Today's resolution should ultimately resolve any legal ambiguity that was created earlier this month when President Bush suspended parts of the 1990 Iraq Sanctions Act and directed the Treasury Department to create general licenses authorizing conduct of certain economic activity within Iraq.

Resolution 1483 will be reviewed by the Security Council in 12 months, although the measure does not need to be renewed and stays in effect until an internationally recognized Iraqi government is established.