Abstract

This paper provides an analytical framework illustrating the interrelationship between globalized free trade and transnational maritime terrorism. A survey of economic and security literature explains problems stemming from voluntary compliance for cargo inspections and suggested solutions for increased port security. The United States is the primary target country of transnational terrorism because it has the greatest volume of dollar flows of goods from foreign countries. Bilateral international trade transactions are vulnerable to illegal trade activities with illegal goods, kidnapping, smuggling, weaponry and the like threatening global economic interests and facilitating trade-based money laundering for terrorism. Security agreements with foreign countries can facilitate security implementation at not only the point of destination but also at the point of origin. This case study examines how best to control for trade and terrorist interactions; how trade policies have created terrorism opportunities and also can help curtail these interactions; and what measures are being implemented by the Department of Homeland Security.