Step 1: Understand the question
The question refers to an action by U.S. President George W. Bush, who revoked a trade embargo against a country once declared a terrorist state. It also notes that this move allowed U.S. companies to invest there for the first time since 1986. We need to identify the country, with the correct option being Libya.
Step 2: Background on the embargo
In 1986, the United States imposed sanctions and a trade embargo on Libya after accusing the Libyan government, under Muammar Gaddafi, of supporting terrorism, including involvement in the bombing of a Berlin nightclub frequented by U.S. soldiers. Over time, Libya became isolated internationally because of its alleged role in sponsoring terrorist activities.
Step 3: Events leading to change
In the early 2000s, Libya took steps to normalize relations with the West. It accepted responsibility for the 1988 Lockerbie bombing of Pan Am Flight 103, agreed to pay compensation to victims’ families, and announced it would dismantle its weapons of mass destruction programs. These moves helped Libya improve its image and encouraged the United States to lift sanctions.
Step 4: Bush administration’s decision
As a result of these efforts, President George W. Bush revoked the trade embargo in 2004, allowing American companies to do business and invest in Libya for the first time in nearly two decades. This marked a significant turning point in U.S.–Libya relations.
Step 5: Final justification
Therefore, the country in question is Libya, since the lifting of sanctions in the mid-2000s specifically applied to it, following its cooperation with the international community.
Final Answer: The correct option is (D) Libya.