Food and medicine have been exempted by the Clinton Administration from sanctions on Iran, Sudan and Libya.  The action was lauded by most agricultural interests, including Senate Ag Committee Chairman Richard Lugar (R-IN).  Lugar also wants administration support for sanctions reform legislation pending in Congress.

"This new policy does not mean automatic approval of agricultural sales," cautioned Agriculture Secretary Day Glickman, but gives farmers and exporters a chance to compete.  The new policy extends to "existing unilateral economic sanctions" with a case-by-case review of specific proposals for commercial sales.

USDA expects another 1 million tons of wheat and corn exports as a result of the administration's action worth about $500 million a year.

Glickman and Stuart Eizenstat, State Department under secretary for economic, business and agricultural affairs, will testify June 9 before the House Agriculture Committee at a hearing to examine the effect of sanctions on agriculture and assess trade opportunities as a result of the exemptions.

Committee Chairman Larry Combest (R-TX) also welcomed the decision.  "Trade sanctions aim for the dictators and generals but hurt American farmers and ranchers who work all season to sell food to starving people," he said.

Lugar said, "I do not believe that food and medicine should be used as a tool of foreign policy.  Doing so typically injures innocent civilians in the sanctioned country, imposes little hardship on recalcitrant leaders whose behavior we wish to change and opens the door for other exporting nations to replace the U.S. as a food supplier.  I welcome this decision by the Clinton Administration, and I hope they will continue to be helpful by supporting sanctions reform legislation that is pending in Congress."

Wheat farmers also praised the decision.  It is "welcome news to wheat farmers," said Jim Stonebrink, president, National Association of Wheat Growers.  "Farmers need to know that their government is working with them to open previously closed markets."

Both the NAWG and U.S. Wheat Associates said they hoped export licenses would be easy to obtain.  Exporters will have to apply for a license to sell food or medicine to the countries involved in the decision.