Trade Sanctions and Effects on Long-Run Stocks of Marine Mammals

Abstract

Trade sanctions are used to influence the long-run management of an ecological system in another country, trying to secure a large predator stock by using sanctions on the exports of the products from the predator or the prey. This corresponds to U.S. sanctions on Norwegian fish exports aiming to prevent or reduce harvesting of Minke whales. Threats of sanctions influence long-run equilibrium, but do not secure increased stocks and decreased harvesting. The outcome depends on the bioeconomic interaction between the species, and the managerial system in the Target country. It is neither obvious that the sanctions are credible, nor that the Sender will succeed. The interaction between the species is crucial for evaluating the effects of the sanctions.