North Korea trade with U.S. drops 80 percent to $4.4 million under sanctions

WASHINGTON, Oct. 7 (UPI) -- Trade between North Korea and the United States shrunk to $4.4 million between January and August, reaching only a fraction, or 20 percent, of the total volume attained during the same time period in 2014.

The U.S. Department of Commerce released data indicating more than $4 million of goods and services changed hands between the world's largest economy and North Korea – a sharp reduction from $24 million in the prior year.

Most of that volume comprised of relief goods from U.S.-based aid organizations. Yonhap reported about 85 percent, or $3.75 million, was classified as relief items from nonprofits or private organizations engaging in philanthropy.

The remaining 15 percent included exports of electronic products and poultry. Electronics comprised $450,000 of the exchange volume, and chicken exports accounted for $56,000.

Due to U.S. sanctions, trade is often limited to humanitarian supplies that include food and medicine. A special trade permit also is required for U.S. entities.

North Korea's failure to comply with U.S. demands to denuclearize has added to the restrictions. In September, Washington imposed new sanctions against two North Korean firms, citing proliferation activities.

The sanctions, which went into effect Sept. 24, place restrictions on U.S. arms traders and manufacturers, banning them from selling technology to Pyongyang's Korea Mining and Development Corp. and Hesong Trading Corp. The North Korean companies were found to be in violation of Executive Orders 12398 and 13222.

U.S. businesses with ties to North Korea also need special licenses, and they are required to be registered under the Foreign Agents Registration Act. In September, a Korean American businessman had his agent status terminated for not reporting his income regularly.

Steve Park, also known as Park Il-woo, was an importer of North Korea's critically acclaimed Taedonggang Beer.