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Negotiating a Korean Settlement: The Role of Sanctions

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Coordination problems or “weak links” have prevented the imposition of a robust sanctions regime vis-à-vis North Korea. As North Korean testing has accelerated, the US, Korea and Japan have responded to this problem by seeking to engage China on the issue, by deploying secondary sanctions, and by trying to curtail trade and financing with other parts of the world. Yet despite the emphasis placed on sanctions, North Korea appears to favors direct material payoffs to sanctions relief and at present seems largely uninterested in negotiations on the nuclear issue.

Abstact

I. The Current Sanctions Regime and the Political Economy of North Korean Trade

II. More Sanctions to Get to Less?

III. Sanctions and Inducements in an Interim Agreement

IV. Going for a Grand Bargain: The Role of Economic Inducements in a Final Settlement

V. Conclusion

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