chapter  10
22 Pages

The Economic Impacts of the Glenn Amendment: Lessons from India and Pakistan

Just six months after the sanctions were announced, however, the United States had lifted virtually all of the economic sanctions that were imposed on India and Pakistan following their nuclear bomb tests in May 1998. The process of weakening the sanctions in place against India and Pakistan had actually begun in July 1998, when the Senate voted to exempt food exports from sanctions.2 On October 21, 1998, Congress passed the Brownback Amendment, which gave President Clinton the authority to waive certain economic sanctions in place against India and Pakistan and to resume trade financing and other assistance programs for up to twelve months. President Clinton wasted little time in using this waiver authority. On November 6, 1998, the president's declaration, officially titled the "India-Pakistan Relief Act," waived the prohibitions in place against the activities of the United States Export-Import Bank, the Overseas Private Investment Corporation (OPIC), and the Trade Development Agency in both India and Pakistan. Perhaps

most important, the presidential waiver also authorized US. officials to support loans to Pakistan from the International Monetary Fund (IMF) and the World Bank.3 On June 9, 1999, the US. Senate voted to extend the waiver authority created by the Brownback Amendment for another five years, in the form of an amendment attached to an approved defense appropriations bil1.4

While the Brownback Amendment has, for the time being, rolled back almost all of the original sanctions placed on India and Pakistan, the Glenn Amendment-the legislation that required the imposition of the sanctionsremains on the books. Hence, the policy question remains: Should the United States keep the Glenn Amendment-or similar automatic, unilateral sanctions against nuclear proliferators-in place'!