Article 98 Agreements and Sanctions on U.S. Foreign Aid to Latin America Page: 10 of 14
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CRS-7
Nethercutt aid restrictions continued in the FY2007 Continuing Appropriations
Resolution (P.L. 109-289, as amended) and are likely to be included in the FY2008
Foreign Operations Appropriation bill.
FY2007 Defense Authorization Act Modifies ASPA
On September 30, 2006, the Senate unanimously consented to a conference
report on the FY2007 Defense Authorization, H.R. 5122/S. 2766, which was passed
by the House on September 29. The conference agreement, following the Senate
version of the bill, modifies ASPA to end the ban on International Military Education
and Training (IMET) assistance to countries that are members of the ICC and that do
not have Article 98 agreements in place. The President signed the bill into law, P.L.
109-364, on October 17. Restrictions on Foreign Military Financing (FMF) remain
in place under ASPA.
Other Relevant Legislative Proposals. During the 109th Congress,
another bill was introduced, H.R. 5995 (Engel), that would have ended all restrictions
on U.S. aid to countries that are members of the ICC and that do not have Article 98
agreements in place. If it had passed, the bill would have required the repeal of both
ASPA and the Nethercutt Amendment.
Article 98 and U.S. Aid to
Latin America
The ASPA and the Nethercutt Amendment have had an impact on U.S. foreign
assistance to Latin America and the Caribbean.
Military Assistance
Pursuant to the American Servicemembers' Protection Act or ASPA (P.L. 107-
206, title II), the Bush Administration terminated military assistance to governments
of countries that had not signed Article 98 agreements as of July 1, 2003. The
military assistance prohibition has included International Military Education and
Training (IMET) and Foreign Military Financing (FMF). The IMET program
provides training on a grant basis to students from allied and friendly nations. FMF
provides grants to foreign nations to purchase U.S. defense equipment, services, and
training. In FY2003, prior to ASPA, the United States provided some $4.65 million
in IMET among the 12 countries sanctioned by ASPA. This funding enabled 771
military officers and civilian officials from those countries to receive training in the
United States. In FY2004, aside from Bolivia, which received a temporary waiver
from ASPA provisions, none of those countries participated in IMET. ASPA-related
sanctions resulted in a loss of $1.9 million in IMET funding in FY2005. Although
military assistance losses may not be significant when viewed from a regional
perspective, they have resulted in some acute aid cuts for particular countries,
including Bolivia, Ecuador, and Peru.
Some analysts also assert that FMF cutbacks, totaling some $4.4 million in
FY2005 and $3 million in FY2006, have made some military modernization projects
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Ribando, Clare M. Article 98 Agreements and Sanctions on U.S. Foreign Aid to Latin America, report, March 22, 2007; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc806637/m1/10/: accessed July 17, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.