The Weaponization of Global Trade - Sanctions and other tools of Economic Coercion
Introduction to the Committee:
The Economic and Financial Committee (ECOFIN), also known as the Second Committee is part of the UN General Assembly and deals with issues related to global economic growth, trade, and financial stability. It seeks to promote equitable development and regulate international economic relations. All 193 member states of the UN can attend.
Defining the Issue:
Economic Sanctions: The Cambridge Dictionary defines an economic sanction as “actions taken by a country or organization against the economy of another country, such as refusing to trade with it, in order to force it to obey a law or a set of rules”.
Economic tools like sanctions, tariffs, export controls or exchange rate manipulations have long been part of international trade policy. Traditionally, sanctions were imposed to deter aggression or human rights violations while for example tariffs (“a tax on goods entering a country”) were used to protect domestic industries. However, in recent decades, these tools have increasingly been used as weapons of political influence and coercion. This practice, also referred to as the weaponization of trade, raises critical questions about the limits of economic sovereignty, the role of global institutions like the World Trade Organisation (WTO) and UN and the humanitarian consequences of economic warfare.
Historical Background:
The use of economic measures to influence other states is not new. In the Cold War era both the United States and the Soviet Union relied on economic restrictions and aid programs to strengthen alliances and isolate adversaries. The U.S. embargo on Cuba in 1962 which is still active today is an early example. In the 1990s the end of the Cold War saw the rise of multilateral sanctions authorized by the UN Security Council like those imposed on Iraq after its invasion of Kuwait in 1990. In the 2000s and 2010s trade networks became even more intertwined. Unilateral sanctions by major economies began to replace multilateral ones, while things like tariffs reemerged more recently not as an economic policy but as political weapons. The global economy has been turned into a battleground of competing interests.
Current Situation:
Sanctions as Political Instruments
Economic sanctions are often justified as peaceful alternatives to military action. However, their effectiveness and morality are increasingly contested like for example the sanction imposed on Iraq which devastated its economy and exposed its population to extreme poverty and suffering. Comprehensive sanctions on Russia after the 2022 invasion of Ukraine have reshaped global energy markets and accelerated economic decoupling between blocs. Sanctions on Iran, Venezuela, and North Korea have had severe humanitarian impacts, limiting access to medicine and food while failing to achieve the goal of political change. There has also been a rise of secondary sanctions, which target third countries or firms doing business with sanctioned states.
Other economic tools
Tariffs have become key tools of economic confrontation since around 2018. The U.S.–China trade war saw tariffs on billions of dollars worth of goods, disrupting global supply chains and raising costs for consumers worldwide. Similar tariff tensions have emerged between the EU and the United States over steel and aluminium and between India and other Asian economies over agricultural and technology markets. Tariffs now serve less as fiscal instruments and more as diplomatic bargaining chips.
Export controls are government-imposed restrictions on the sale of certain goods, technologies, or knowledge to foreign entities. The US and China have both placed reciprocal restrictions on each other which prompted some nations (such as Japan and the Netherlands) to align their own export rules with U.S. policy. Another example is the EU banning the export of dual-use goods and technologies that could support Russia’s military capabilities after 2022.
Exchange rate manipulation, meanwhile, involves states deliberately influencing their currencies’ value to gain a competitive trade advantage. By keeping a currency artificially low, a nation can make its exports cheaper and imports more expensive boosting domestic production. Countries like the US, China Japan and South Korea have all been accused to or have been confirmed to have intervened in foreign exchange markets to counteract rapid currency appreciation that threatened their export sectors.
The Multilateral Challenge
The World Trade Organization (WTO) while not a UN body the WTO cooperates closely with the UN. It was originally designed to prevent trade wars, but has struggled to address politically motivated sanctions, which often invoke “national security exceptions.” Meanwhile, the UN faces internal divisions over unilateral measures imposed without Security Council approval. Many developing nations argue that such measures violate the principles of non-interference and economic sovereignty, enshrined in the UN Charter.
What the UN Has Already Done:
● UN Security Council (UNSC) Sanctions:
○ The UNSC is the only body authorized under international law to impose binding sanctions. These have been applied to maintain international peace (e.g. against Iraq, North Korea, and Libya).
● UN General Assembly Resolutions: The GA has adopted several resolutions condemning unilateral coercive measures imposed outside of UN mandates, emphasizing their humanitarian and developmental consequences.
○ 1997 - Human rights and unilateral coercive measures
■ One of the earliest GA resolutions explicitly calling on states to “refrain from any unilateral coercive measure not in accordance with international law … that create obstacles to trade relations among States”. This resolution set a foundational norm against sanctions and economic coercion.
○ 2007 - Human Rights and Unilateral Coercive Measures
■ Reiterates concerns about sanctions’ human rights impacts; condemns extraterritorial effects.
○ …..
○ 2023 - Human Rights and Unilateral Coercive Measures
■ The most recent iteration of the “human rights & sanctions” motif. It reaffirms prior concerns and calls for cooperation to mitigate negative effects.
○ 2025 - International Day against Unilateral Coercive Measures
■ Proclaims 4 December as the annual International Day against Unilateral Coercive Measures to raise awareness about the harms of such measures.
● United Nations Conference on Trade and Development (UNCTAD) and the Special Rapporteur on Sanctions:
○ Both have issued reports highlighting that over 40 countries, mostly in the Global South, are currently affected by unilateral sanctions. These measures often exacerbate poverty and inequality.
● World Trade Organisation (WTO):
○ States can challenge things like tariffs under WTO rules but claims of national security have limited the WTO’s ability to enforce fair competition.
Questions a Resolution Should Answer:
● Should the UN or WTO establish clearer definitions and limits for “economic coercion”?
● How can humanitarian exemptions and oversight mechanisms in sanctions regimes be improved?
● Should unilateral sanctions require international review or transparency reporting?
● Should developing nations receive economic compensation or technical support when indirectly affected by sanctions?
● When do tariffs or sanctions constitute a legitimate defense of national interests and when do they become unlawful coercion?
● How can one limit the effects of trade weaponization on global markets, inflation, and supply chains?
Key Questions when Researching Your Country’s Position:
● Does my country impose or face economic sanctions or tariffs? Has it done so in the past?
● How dependent is my country on international trade, energy imports, or foreign markets?
● Has my country’s economy been affected by great power rivalries or trade wars?
● What is my country’s stance on unilateral sanctions not authorized by the UN?
● Does my country support strengthening WTO dispute mechanisms or reforming UN sanctions procedures?
Country Suggestions:
● United States
● China
● European Union States:
○ France
○ Poland
○ ….
● Russia
● Iran
● Iraq
● Saudi Arabia
● India
● Japan
● South Africa
● Nigeria
● Brazil
● Venezuela
● …
