United States: U.S. to Drop Libya from Terrorist List and Open Embassy in Tripoli – Arms Embargo Imposed on Venezuela

The Bush Administration announced today that it would remove Libya from the list of state sponsors of terrorism and resume full diplomatic relations with Libya. Despite the lifting of most economic sanctions against Libya in 2004, Libya has maintained its designation under Section 6(j) of the Export Administration Act (EAA) as a country supporting international terrorism. Consequently, products and technology subject to Anti-Terrorism (AT) controls and other items described in Section 742.20 of the Export Administration Regulations (EAR) have continued to require validated licenses for export or re export to Libya.

In order to remove a country from this category, EAA Section 6(j)(4) requires the President to submit a report to the Speaker of the House of Representatives and the chairman of the Committee on Banking, Housing and Urban Affairs and the chairman of the Committee on Foreign Relations of the Senate. In this case, the report must be submitted at least 45 days before the proposed rescission takes effect justifying the rescission and certifying that: (i) the Libyan government has not provided any support for international terrorism during the preceding six month period; and the Libyan government has provided assurances that it will not support acts of international terrorism in the future.

The documents notifying Congress of the rescission have not yet been released but news wire reports are indicating that the official change in Libya's designation will become effective 45 days from May 15, 2006. At that point, shipments of items listed on the Commerce Control List in the EAR that are controlled for AT reasons will be eligible for shipment to Libya without an export license. This will include a broad range of products that currently require licenses for export or re export to Libya, including aircraft, electronics, computers, software and materials.

The move caps a process that began in 2003 when Muammar Gadhafi agreed to dismantle his country's weapons of mass destruction program. Secretary of State Rice said in a statement today that "[w]e are taking these actions in recognition of Libya's continued commitment to its renunciation of terrorism and the excellent cooperation Libya has provided to the United States and other members of the international community in response to common global threats faced by the civilized word since September 11, 2001."

Separately, the State Department also announced that it would suspend all licenses for defense articles, technical data and services to Venezuela and adopt a denial policy for such licenses. This announcement does not impose an across the board embargo on economic relations with Venezuela nor does it restrict exports or re exports of commercial products and technology, but applies to products, technology and services subject to licensing by the Department's Directorate of Defense Trade Controls under the International Traffic in Arms Regulations. This announcement reflects a further deterioration in US relations with the Venezuelan government of Hugo Chavez.

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