Abstract

In spite of the official position of the U.S. government since the Soviet invasion of Afghanistan, the crackdown by authorities in Poland and the Soviet downing of Korean Airlines flight 007, U.S.-U.S.S.R. trade continues. In 1979, exports to the Soviet Union were at an all-time high of $3.6 billion. After falling below $2 billion in 1982, they are again rising. In 1982, exports totalled $2.6 billion-which, when adjusted for inflation, is approximately 5% below the 1979 level. While U.S.-U.S.S.R. trade continues, it is complicated by political issues. The grain embargo, imposed by former U.S. President Jimmy Carter shortly after the Afghanistan invasion, was lifted by U.S. President Ronald Reagan two years later in spite of the fact that the Soviets remained in Afghanistan. Reagan imposed sanctions on the export of oil and gas equipment to the Soviet Union in an attempt "to advance reconciliation in Poland" after the imposition of martial law there. These sanctions were lifted ten months later after several European countries refused to recognize the legality of the sanctions for foreign subsidiaries of U.S. companies.