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ARTICLE · 15 SEPTEMBER 2006

U.S. Lifts Libya’s Terrorist Designation

It was almost two years ago that President Bush terminated the national emergency with Libya, effectively ending the United States’ longstanding unilateral embargo on that country. While this decision represented a major step forward in the normalization of trade relations between the countries, it did not remove all obstacles to doing business with Libya.

United StatesGovernment, Public Sector

It was almost two years ago that President Bush terminated the national emergency with Libya, effectively ending the United States’ longstanding unilateral embargo on that country. (See Reed Smith’s April 2004 Client Bulletin.)While this decision represented a major step forward in the normalization of trade relations between the countries, it did not remove all obstacles to doing business with Libya. Most notably, Libya remained one of the United States’ designated “terrorist” supporting nations. As a result, a number of license requirements for Libya under the Export Administration Regulations (“EAR”) and the International Traffic in Arms Regulations (“ITAR”) remained in effect, significantly limiting potential commercial opportunities.

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