Distortion of international trade by embargoes

Governmental prohibitions of all or certain kinds of shipments to foreign countries, to serve national political, military or economic interests, frequently are ineffective, unjustified and destabilizing to international free trade. Intergovernmental organization embargoes against aggressor nations have had little impact.

1. Among useless embargoes were those imposed by the League of Nations on oil shipments to Italy, and by the United Nations on armaments to China and North Korea during the Korean War. The only consequences of a grain embargo by the USA were losses for its own economy.

1. Non-tariff barriers to international trade
2. Economic conflict

1. Unilateral secondary embargoes
2. Imposition of trade quotas for political reasons
3. Imposition of trade quotas for health reasons
4. Embargo on medicines

1. Profiteering

1. Vulnerability of economies to import penetration
2. Overdependence on government subsidies
3. Distortion of international trade as a result of government participation

1. Limited observance of multilateral trade agreements

1. Excessive customs and trade formalities

1. Restriction
2. Distortion
3. Banning