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Economic sanctions can have a major impact on the neighbours of a target nation

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After Ukraine was invaded in February 2022, countries and major corporations around the world quickly responded by trying to inflict financial pain on Russia through economic sanctions.

As Putin’s war rages on, opinions vary as to how effective those sanctions have been. But their enforcement shows how they are still widely considered to be a useful tool of coercive foreign diplomacy.

Exerting economic pressure on a target country to achieve a specific political or strategic goal remains a commonly used measure. Since 1966, the UN Security Council has established 31 sanctions regimes around the world, in places including Sudan, Lebanon, Iran and Haiti. The EU even has an online map of all the countries where it has imposed various types of sanction.

In terms of their effectiveness, plenty of research has explored this, revealing strong evidence that sanctions reduce the economic activity of a targeted nation.

But what about the potential for unintended consequences of sanctions on their neighbours? What happens to a nation if it borders a country being punished by members of the international community?

Our recent research, examines the effects of economic sanctions on 177 countries which had neighbours under sanctions at some point between 1989 and 2015.

We found that, on average, neighbouring countries experienced a significant decline in trade – around 9% – following the imposition of economic sanctions nearby. In most cases, proximity to a country under economic sanctions brings disruption to trading routes and relationships. It also leads to extra transportation and transaction costs.

Previous research reveals further evidence of this effect. There are studies which show how economic sanctions hurt neighbour countries due to the great disruption they inflict on trading routes and relationships with suppliers or customers. For example, 21 countries reported economic hardship as a result of the sanctions imposed on Iraq.

So sanctions imposed on a country to damage its economy often tend to do economic harm to its neighbours. But not always.

In some of the cases we looked at, sanctions actually have a positive effect on neighbouring countries.

For example, following economic sanctions against Haiti in 1987, the Dominican Republic saw an increase in import trade. The same benefit – in both cases possibly due to cross-border trafficking – was experienced by Kenya when Somalia was hit with sanctions in 1992.

Even among a group of countries sharing a border with the same targeted state, we observed varied responses. Following the sanctions imposed on Yugoslavia in 1991, Albania experienced a sharp increase in imports, while Bulgaria initially witnessed an increase, followed by a decline for the subsequent three years, and then a rebound over the following six years.

Unintended consequences

It seems then that economic sanctions can create significant opportunities for neighbouring countries as global manufacturers need to relocate their production facilities out of the target state. Some companies in Russia are said to be looking for ways to move their activities to neighbouring countries such as Kazakhstan.

We found that sanctions can also benefit neighbouring countries by providing them with an opportunity to trade on behalf of the target country, or smuggling goods across the border.

Sanctions are a popular response.
Sandor Szmutko/Shutterstock

In this way, EU sanctioned goods could be re-routed through third countries and then shipped to Russia. There is evidence that countries not necessarily bound by the sanction regime, such as Kazakhstan and Kyrgyzstan, have increased their trade with Ukraine’s invader.

Overall then, while economic sanctions can be effective in pressuring the targeted country, our findings indicate that they can have unintended consequences such as harming innocent bystanders.

By thoroughly examining those potential consequences, politicians can attempt to strike a balance between pursuing foreign policy goals and taking into account their broader economic effects. Recognising these effects should be part of imposing sanctions in the first place – and would help create more robust policies to ensure that they are effectively implemented.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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N.B. election: Parties’ answers on treaty rights, taxes, Indigenous participation

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FREDERICTON – The six chiefs of the Wolastoqey Nation in New Brunswick distributed a survey on Indigenous issues to political parties ahead of the provincial election, which is scheduled to kick off Thursday. Here are some of the answers from the Progressive Conservative, Liberal and Green parties.

Q: How does your party plan to demonstrate a renewed commitment to recognizing our joint treaty responsibilities and acknowledging that the lands and waters of this territory remain unceded?

Progressive Conservative: The party respectfully disagrees with the assertion that land title has been unceded. This is a legal question that has not been determined by the courts.

Liberal: When we form government, the first conversations the premier-designate will have is with First Nations leaders. We will publicly and explicitly acknowledge your treaty rights, and our joint responsibility as treaty people.

Green: The Green Party acknowledges that New Brunswick is situated on the unceded and unsurrendered territories of the Wolastoqiyik, Mi’kmaq and Peskotomuhkati peoples, covered by the Treaties of Peace and Friendship. Our party is committed to establishing true nation-to-nation relationships with First Nations, grounded in mutual respect and co-operation as the treaties intended.

Q: How does your party propose to approach the issue of provincial tax agreements with First Nations?

Progressive Conservative: The government of New Brunswick operates in a balanced and fair manner with all organizations, institutions and local governments that represent the citizens of this province, including First Nations. Therefore, we cannot offer tax agreements that do not demonstrate a benefit to all citizens.

Liberal: Recent discussions with First Nations chiefs shed light on the gaps that existed in the previous provincial tax agreements with First Nations. Our party is committed to negotiating and establishing new tax agreements with First Nations that address the local needs and priorities and ensure all parties have a fair deal.

Green: The Green Party is committed to fostering a respectful relationship with First Nations in New Brunswick and strongly opposes Premier Blaine Higgs’s decision to end tax-sharing agreements. We believe reinstating these agreements is crucial for supporting the economic development and job creation in First Nation communities.

Q: How will your party ensure more meaningful participation of Indigenous communities in provincial land use and resource management decision-making?

Progressive Conservative: The government of New Brunswick has invested significant resources in developing a robust duty to consult and engagement process. We are interested in fully involving First Nations in the development of natural resources, including natural gas development. We believe that the development of natural gas is better for the environment — because it allows for the shutdown of coal-fired power plants all over the globe — and it allows for a meaningful step along the path to reconciliation.

Liberal: Our party is focused on building strong relations with First Nations and their representatives based on mutual respect and a nation-to-nation relationship, with a shared understanding of treaty obligations and a recognition of your rights. This includes having First Nations at the table and engaged on all files, including land-use and resource management.

Green: We will develop a new Crown lands management framework with First Nations, focusing on shared management that respects the Peace and Friendship Treaties. We will enhance consultation by developing parameters for meaningful consultation with First Nations that will include a dispute resolution mechanism, so the courts become the last resort, not the default in the face of disagreements.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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Canadian Coast Guard crew member lost at sea off Newfoundland

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ST. JOHN’S, N.L. – A crew member of a Canadian Coast Guard ship has been lost at sea off southern Newfoundland.

The agency said in a release Wednesday that an extensive search and rescue effort for the man was ended Tuesday evening.

He was reported missing on Monday morning when the CCGS Vincent Massey arrived in St. John’s, N.L.

The coast guard says there was an “immediate” search on the vessel for the crew member and when he wasn’t located the sea and air search began.

Wednesday’s announcement said the agency was “devastated to confirm” the crew member had been lost at sea, adding that decisions to end searches are “never taken lightly.”

The coast guard says the employee was last seen on board Sunday evening as the vessel sailed along the northeast coast of Newfoundland.

Spokeswoman Kariane Charron says no other details are being provided at this time and that the RCMP will be investigating the matter as a missing person case.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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