N. Korea trade to gain from U.S. terror delisting: N. Korea expert

PYONGYANG, Nov. 4 Kyodo - North Korea's removal from a U.S. blacklist of state sponsors of terrorism last month will have a positive impact on the country's trade but will not spell the end of constraints on its international trade, a North Korean academic said Tuesday.

Ri Gi Song, professor at North Korea's Academy of Social Sciences, told Kyodo
News in an interview that other international sanctions are still in place and
''there should be no illusions'' about the country's trade environment.
''The delisting from the terror list is expected to have a certain level of
beneficial impact, but this does not mean that all (international) economic
restrictions have been taken away,'' he said.
The United States removed North Korea from the list last month after Pyongyang
agreed to a set of measures to verify information about its nuclear programs.
A state named on the U.S. blacklist is subject to sanctions, including a ban on
arms-related sales to that country. Removal from the list raises the
possibility of gaining access to aid from international financial institutions
such as the World Bank.
Ri also said Japan's sanctions against North Korea have not had a major impact
on the country's economy but are hurting Korean residents of Japan who do
business with North Korea.
''There is little impact from these restrictions on the economic development of
the country, but I think there is an impact on businessmen of Chongryon,'' he
said, referring to the pro-Pyongyang General Association of Korean Residents in
Japan.
''The Korean residents of Japan cannot come and go as they please,'' Ri said.
Japan's sanctions include a ban on port calls by North Korean vessels including
a cargo-passenger ferry that provided a major means of transportation for
Koreans in Japan traveling to North Korea. The sanctions also ban imports from
North Korea and exports of luxury goods to the country.
The sanctions were first imposed in July 2006 after North Korea's missile tests
earlier in the month and expanded further after North Korea's nuclear test in
October the same year. The sanctions were extended in October for the fourth
six-month period.
Ri said he does not think North Korea's centrally planned economy will be
affected by the current global financial turmoil that began with the U.S.
subprime mortgage meltdown.
''I don't think it will have a direct impact on our economy, as our economy is
not part of the capitalist market mechanism,'' he said.
The role of market allocation is sharply limited in the North Korean economic
system. The country suffers from chronic energy and food shortages.
==Kyodo