Q+A: What does U.S. terrorism list mean for North Korea?

(Reuters) - The United States said at the weekend it would remove North Korea from its terrorism blacklist after agreeing to nuclear verification checks with Pyongyang to salvage a floundering disarmament-for-aid deal.

Here are some facts about the list and its implications:

* What is the list

In 1979, the United State prepared a list of countries it said were providing either direct or indirect support to terrorist groups.

* What it implies?

Under the Trading With the Enemy Act, the designation on the terrorism list bars the country from receiving U.S. exports, controls sales of items with military and civilian uses, limits U.S. aid and requires Washington to vote against loans from international financial institutions.

Apart from North Korea, the list includes Iran, Cuba, Syria and Sudan.

* What does North Korea receive once removed?

North Korea will be able to better tap into international finance and see the removal of some trade sanctions.

More importantly, it will be able to use international settlement banks to transfer money abroad. This will help its destitute economy attract business and investment. At present, many international companies have to use suitcases to move cash in and out of North Korea.

Even if the gains from removal amount to $1 billion or $2 billion a year, the impact would be huge on its annual economy estimated at about $20 billion.

* What stays in place?

North Korea will still be subject to U.N. Security Council sanctions for its ballistic missile test and nuclear test in 2006 The sanctions limit its export of arms and its import of sensitive military material.

Missiles are one of the few products North Korea can export for cash.

* When and why was North Korea added to the list?

North Korea has been on the list since January 20, 1988.