New UNSC resolution to seek to cut North Korea’s coal exports

Posted on : 2016-11-29 16:17 KST Modified on : 2019-10-19 20:29 KST
Move in response to fifth nuclear test intends to reduce current export levels by 25% of current total
Keumya Youth Coal Mine in South Hamgyong Province
Keumya Youth Coal Mine in South Hamgyong Province

A new United Nations Security Council (UNSC) resolution looks likely to be adopted as early as this week in response to North Korea’s fifth nuclear test on Sep. 8, after discussions ended this week with a de facto agreement on a draft version.

Through adoption and implementation of the new resolution, the UNSC intends to cut North Korea’s exports by over US$800 million from their current levels, or roughly 25% of its approximately US$3 billion per year.

According to accounts from various foreign media sources, the US and China, which are permanent UNSC members and the key countries in the discussions toward a new resolution, reached an agreement on Nov. 26 on a draft that would limit exports of coal - one of the North’s leading export items - to US$400,900,000 (472 billion won) or 7.5 million tons a year. The plan is to limit exports once they reach either of the two designated ceilings in terms of value or quantity. The calculation date is to fall on Jan. 1 each year.

The ceiling approach is a compromise reached by the US and China after South Korea, the US, and Japan raised serious concerns about “public livelihood” provisions in Resolution 2270 - adopted by the UNSC in response to the North’s fourth nuclear test on Jan. 6 and described as the “toughest yet” - being abused as a loophole to skirt sanctions.

China accounts for 90% of North Korea’s foreign trade, and anthracite coal is far and away the latter’s top-ranked export item, accounting for 42.1% of exports in 2015 and 43.4% for the first half of 2016. Exports to China last year were valued at over US$1 billion. By this standard, strict implementation of the new sanctions could leave North Korea facing losses of over US$600 million a year just from its coal trading with China.

While North Korean coal exports to China have been in decline since 2013, they actually rose 13% over the same period last year - to 18.6 million tons as of October - following adoption of UNSCR 2270 this year. The increase is believed to be the result of attempts to counter falling coal prices with quantity.

Meanwhile, another eleven people, including North Korea’s ambassadors to Egypt and Myanmar, and ten organizations involved in North Korea’s nuclear and missile development programs, are reportedly being added as targets of sanctions. Contracts signed by Pyongyang with some African countries to build multimillion-dollar bronze statues will also reportedly be banned.

By Kim Ji-eun, staff reporter

Please direct questions or comments to [english@hani.co.kr]

 

 

button that move to original korean article (클릭시 원문으로 이동하는 버튼)

Related stories