International Law Advisory - US State Department to Impose Arms Embargo on Venezuela

On May 15, 2006, the Spokesman of the US Department of State announced that the United States would be imposing an arms embargo on Venezuela for not fully cooperating with efforts to combat terrorism.  In this regard, and pursuant to Section 40A of the Arms Export Control Act (AECA), as amended, on May 8, 2006, the Department of State transmitted to Congress a determination and certification by the Secretary of State that Venezuela – along with Cuba, Iran, North Korea, and Syria – is not fully cooperating with the antiterrorism efforts of the United States.   Notice of this action was published at 71 Federal Register 28897 on May 18, 2006.

According to information published by the Directorate of Defense Trade Controls website, as of October 1, 2006, new US sales and licenses for the commercial export of defense articles and defense services to Venezuela will be prohibited.  Additionally, as a matter of policy, as of October 1, 2006, the retransfer to Venezuela of US-origin defense articles and technology will not be permitted.  In the period before October 1, the United States will continue to carefully scrutinize all proposed arms transfers and sales to Venezuela on a case-by-case basis. Exports that do not support the foreign policy and national security goals of the United States will not be approved.  Although export authorizations that have already been approved will not be rescinded and exports under ITAR exemptions will continue to be allowed – absent a Federal Register notice to the contrary – until October 1, 2006, all subject exports and retransfers will be prohibited after that date, no matter the date that the authorization expires. Click here for more information.

As a result, US sales and licenses for the export of defense articles and services to Venezuela, including the re-transfer of defense articles, will not be permitted.  In addition, amendments to existing foreign military sales cases will not be allowed for Venezuela. Effectively, this embargo will end all commercial arms sales and retransfers to Venezuela.

Relations with Venezuela, a major exporter of oil and petroleum products to the United States, have become more strained in recent months.  The United States is concerned about increasing ties among Venezuela, Iran, and Cuba, which are designated as sponsoring terrorism, as well as its alleged relations with several guerilla groups in Colombia, which are designated as terrorists organizations by the State Department.  After this announcement, press reports indicated that Venezuela was considering the sale of its fleet of F-16 military aircraft to Iran and Cuba. 

We expect that this policy will be clarified and modified in the immediate period ahead.  We will continue to monitor US export control policy concerning Venezuela as it develops and provide regular updates.  If you have any questions or comments, please contact Jack Hayes at 202-429-6491 or Ed Krauland at 202-429-8083.