Trade Sanctions as a Tool of International Relations

Trade policy is often used as a tool of international relations. Offering to reduce tariffs or quotas or to liberalize trade can be used as a bargaining chip to induce trading partners to do the same. When successful, such agreements result in a positive-sum game, since all parties to the deal benefit. Trade sanctions are also a tool of international relations, but their use does not result in positive-sum games because all parties are losers, since all parties are worse off, in economic terms at least, as a result of sanctions. This article discusses trade sanctions as a tool of international relations and questions whether it is a tool that should continue to be used, given the overwhelming evidence that trade sanctions result in more losses than gains. The Iraqi and Cuban sanctions are examined as case studies