North Korea Can No Longer Export Textiles As UN Imposes Sanctions

Trade & Policy

North Korea Can No Longer Export Textiles As UN Imposes Sanctions

The United Nations Security Council unanimously adopted a US-drafted resolution imposing new sanctions on North Korea following its sixth and largest nuclear test. The new sanctions against North Korea include a ban on the country's textile exports and a cap on imports of crude oil.

It is understood that with backing from China and Russia, the council voted 15-0 to slam a ban on textile exports and restrict shipments of oil products to North Korea. The fresh sanctions came as punishment to North Korea after it launched its sixth and most powerful nuclear test on September 3.

Foreign Affairs Minister Julie Bishop welcomed the unanimous resolution by the United Nations saying "This is the toughest sanctions package yet. "The new additional sanctions target very important parts of the North Korean economy."

"There will be a complete ban on the export of all North Korean textiles - that's worth about US$ 950 million a year to the regime. The amount of oil that North Korea can import will be reduced by a third. "There will also be a prohibition on the importation of natural gas. All joint ventures with North Korean individuals and entities are banned. No North Korean worker will be permitted to work overseas once their current contracts are completed. And no new work visas will be issued. Again, this will deny the regime of hundreds of millions of dollars that it has been channelling from remittances to fund its illegal programs."

Textiles are North Korea's second-biggest export after coal and other minerals in 2016, totaling US$ 752 million, according to data from the Korea Trade-Investment Promotion Agency. Nearly 80% of the textile exports went to China. The resolution imposes a ban on condensates and natural gas liquids, a cap of 2 million barrels a year on refined petroleum products, & a cap on crude oil exports to North Korea at current levels. China supplies most of North Korea's crude oil.