Libya: Background and U.S. Relations

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Following the Libyan government's December 2003 decision to eliminate its weapons of mass destruction and long range missile programs, a number of bilateral diplomatic exchanges have taken place, and the termination of U.S. economic sanctions on Libya has paved the way for a renewal of investment by U.S. oil, gas, and energy service firms in Libya's under-capitalized energy sector. Several visits to Libya by Bush Administration officials and Members of Congress in 2004 and 2005 have raised expectations of a formal reestablishment of normal relations between the U.S. and Libya in the near future, including the removal of the last remaining sanctions associated with Libya's designation as a state sponsor of terrorism. Bilateral intelligence and counter-terrorism cooperation has contributed to a gradual U.S.-Libyan re-engagement on security matters since late 2001. Continuing U.S. concerns about Libya's relationship with some Palestinian terrorist groups and an alleged ...

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