North Korea faces difficulties in exporting goods due to UN sanctions

(Baonghean.vn) - Pyongyang has been expanding its nuclear program due to the profits it makes from exporting various contraband goods, including weapons, synthetic drugs, counterfeit money, and nuclear technology. The export market spans Africa, the Middle East, and Southeast Asia. And even though North Korea has been under sanctions since 2006, this has not stopped the activity from taking place.

As Washington and Beijing ramp up the pressure on North Korean leader Kim Jong-un’s regime, reflected in new sanctions passed last weekend, fewer countries dare to defy the international community to continue trading with Pyongyang.

“The effort is now much greater…to cut off diplomatic relations between North Korea and the developing world and raise awareness in implementing UN resolutions,” said Karl Dewey, a chemical, biological and nuclear analyst at IHS Jane’s Defence.

People watch news of North Korea test-launching the Hwasong-14 missile. Photo: Reuters

“Tougher sanctions and increased US pressure on North Korea could make it more difficult for Pyongyang to push through future contracts, as countries may be more cautious about buying goods from North Korea at this time,” said Omar Lamrani, senior military analyst at intelligence analysis firm Stratfor.

A major reason behind the change in thinking from previous years lies in the most fundamental and important details in the newly adopted sanctions resolution.

Stephen Haggard of the Peterson Institute for International Economics said one of the secondary sanctions efforts was aimed at dealing with authorities that do not comply with UN resolutions.

Typical examples include ports in China, Russia and Syria that “fail to monitor and permit transshipment and trade.” If these countries do not change their behavior soon, the law could have a larger impact on “other developed countries that are more concerned about their reputation with the West.”

Will Iran bear more responsibility?

Speculation is growing that Tehran may be increasing its ballistic missile trade with Pyongyang amid reports of warming bilateral ties.

North Korean leader Kim Jong-un orders successive missile test launches. Photo: AP

Last week, both countries focused on nuclear cooperation rather than explicit deals. “The main elements of this cooperation appear to be North Korea transferring liquid-fuel missile technology to Iran, but there is little evidence of Iranian solid-fuel technology being transferred to North Korea,” Dewey said. But experts said they do not believe the activity is increasing.

Meanwhile, expert Lamrani said it was possible for the two countries to exchange nuclear weapons blueprints, but it would be unwise for leader Kim Jong-un as this could cause greater anger from the international community.

So, who are North Korea's customers?

When it comes to military hardware sales, customers can be divided into two groups. The most persistent are “rebel” customers such as Iran, Syria, Cuba and Uganda, which have maintained military ties with North Korea for decades and have no intention of stopping cooperation.

“Reluctant” buyers, such as Ethiopia and Yemen, “may be inclined to buy goods from elsewhere, but due to price or lingering dependence, it is difficult for these countries to cut Pyongyang off from the weapons-related supply chain.

While these markets are expected to move away from Pyongyang due to the new sanctions, Mr. Dewey noted that they may be forced to seek more deals because sanctions on Pyongyang could adjust prices.

Regarding North Korea's nuclear technology exports, Libya and Syria have been major importers, but neither country is believed to have resumed its nuclear programs.

Meanwhile, according to the Peterson Institute for International Economics, the Philippines, North Korea's third largest trading partner in 2016, remains an attractive drug import market./.

Lan Ha

(According to CNBC)