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U.S. States & Foreign Affairs

State governments and local business often lead the way in promoting trade with established and expanding markets. Governors and state delegations have sought to develop increasingly close trade relationships with countries around the world, from London to Beijing to Havana.

At the same time, State legislators increasingly have taken the lead on measures that would cut off engagement and undercut efforts to attract international investment that supports jobs and raises living standards. Foreign policy actions by individual states, while well-intentioned, undermine the ability of the United States to speak with one voice, which is critical to American international leadership. State sanctions also frustrate cooperation with U.S. trading partners, who often see them as a violation of U.S. international commitments, and are extremely unlikely to affect the behavior they seek to change. Global peace and prosperity would be better served by sustained diplomatic efforts and increased aid and humanitarian efforts.

Publications

Testimony by Dr. Jim Walsh for the Massachusetts Joint Committee on State
Administration and Regulatory Oversight

Hearing on H. 4270, An Act Protecting Pension Fund
Investments from the Global Securities Risks of Investments in Iran
April 10, 2008 

Should Public Plans Engage in Social Investing
Alicia Munnell, Center for Retirement Research at Boston College
August 2007

Divestment is the Wrong Answer
Pensions & Investments
Edward Burton, Trustee of Virginia Retirement System
August 6, 2007

State Divestment Legislation, Enacted Legislation and Pending Legislation
The National Conference of State Legislatures
July 30, 2007

Editorial: Push to Divest Pension Funds of Links
to Iran and Sudan is Political Grandstanding

Columbus Dispatch
June 7, 2007

Politicizing U.S. Capital Markets is Bad Public Policy
William Reinsch, President, National Foreign Trade Council
Bankers’ Association for Finance and Trade (BAFT)
Spring 2007 Newsletter

Testimony Before the Texas House of Representatives
Committee on Pensions & Investments
Keith Brainard, Research Director
National Association of State Retirement Administrators
April 17, 2007

State and Local Sanctions: Constitutional Issues

Congressional Research Service (CRS) Report to Congress
April 2, 2007

Presentation: The Legal Challenge to the Illinois Sudan Act
Winston & Strawn LLP
March 27, 2007

SWIB and Sudan: Why Divestment is Not the Answer
State of Wisconsin Investment Board
February 2007

Briefing: Challenge to ‘Illinois Sudan Act’
Litigation Practice, Winston & Strawn LLP
August 2006

Joint Letter on Investments with Ties to Sanctioned Nations
State Pension Fund Executive Directors
June 3, 2005

Social Investing: Pension Plans Should Just Say ‘No’
Alicia Munnell and Anika Sunden Center for Retirement Research at Boston College
June 7, 2004

Do Economic Sanctions Work? Lessons from ILSA and Other U.S. Sanctions Regimes
Stuart E. Eizenstat
The Atlantic Council of the United States
February 2004

Burma: Time for Change
Mathea Falco, Council on Foreign Relations
2003

The States’ Role (if any) in Foreign Affairs
Dave Naftzger
National Conference of State Legislatures
December 2000

States’ Rights and Foreign Policy: Some Things Should be Left to Washington
Brannon P. Denning and Jack H. McCall
Council on Foreign Relations
January/February 2000

Testimony Before the U.S. House Committee on Ways and Means Subcommittee on Social Security
Michael Tanner, Director of Health and Welfare Studies, CATO Institute
March 3, 1999

State and Local Sanctions Fail Constitutional Test
David Schmahmann and James S. Finch, The CATO Institute
August 6, 1998 

State and Local Trade Sanctions: A Threat to U.S. Interests
William H. Lash, Center for the Study of American Business
July 1998 [Link to attached: “State and Local Trade Sanctions A Threat to U.S. Interests.pdf”]

Economic Sanctions: America’s Folly
Speaker, Gary C. Hufbauer
Council on Foreign Relations website
November 10, 1997

Actuarial Impact on Pension Funds due to Divestment of Certain Investments that are Associated with Terrorism or Social Atrocities
PriceWaterHouseCooper [Link to attached: “PWC Actuarial Impact.pdf”]

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Featured

Crosby v. NFTC
Background and case history on a decision which reaffirmed the federal government's predominant role in making foreign policy decisions.

NFTC v. Giannoulias
Ruling by a Federal District Court for the Northern District of Illinois which deemed an Illinois State sanction unconstitutional

State and Local Economic Sanctions: Constitutional Issues
Congressional Research Service
April 2007

Foreign Countermeasures and Other Responses to U.S. Extraterritorial Sanctions
by Dewey Ballantine LLP
August 2007

For More Information

NCSL Economic Development & Trade Issues
National Conference of State Legislatures

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