LP 26/2018 US National Emergency with Respect to North Korea Continued

US President Donald Trump signed an executive order on 22^nd to extend the state of national emergency against North Korea since 2008 for another year.

According to Xinhua news agency, US President Donald Trump signed an executive order on 22^nd to extend the state of national emergency against North Korea since 2008 for another year. In a White House statement on the signing of the executive order, Trump declared the existence and risk of the proliferation of weapons-usable fissile material on the Korean Peninsula as an “unusual and extraordinary threat to the national security, foreign policy, and economy of the United States”.

The then President of the United States, George W. Bush, signed an executive order in 2008 declaring a national emergency to deal with the “threat” posed by North Korea, which has been extended by Presidents Barack Obama and Donald Trump to date. Same expression of “unusual and extraordinary threat” was used in Trump’s proclamation in 2017. This, however, stands in contrast to his June 13 statement on social media in which he declared “everyone can now feel much safer than the day I took office. There is no longer a Nuclear Threat from North Korea” after meeting with Kim Jong Un in Singapore on the 12^th. While the US-DPRK relations may improve in other areas, the Trump administration has made it very clear that economic sanctions against North Korea will remain in place.

Previously, the UN, the US and the EU had all made respective resolutions on North Korea sanctions. The US announced what it called the “largest ever” North Korea-related sanctions on 23 February this year. The US Department of the Treasury, the State Department and the Coast Guard have jointly issued a global advisory to alert the maritime industry to exercise caution in shipping practices that may involve North Korea. Although the sanctions are only unilateral measures adopted by the United States, Members are advised to be cautious to mitigate exposure to sanction risks, considering the role of the US in global trade.

LP25/2018 by COSCO Insurance Brokers also argued that the US sanctions policy has been precarious. While there may be changes in the policy against North Korea in the future, it appears that at least for the coming year the US attitude is clear. Therefore, we again advise Members to continue to follow up on North Korea sanctions and the Association will make sure to keep Members informed of any further developments.

For more information, please contact Managers of the Association.