States Cast Shadow over Iran Nuclear Deal
by Jo-Anne Hart | June 10, 2016
For anyone who has forgotten that states occasionally conduct their own foreign policy, welcome to the latest potential battleground for implementing the Iran nuclear agreement. Thirty-two states and the District of Columbia have some form of Iran sanctions measures on their books. These sanctions are an important and often-overlooked obstacle to improved US-Iran relations.
The Joint Comprehensive Plan of Action (JCPOA), signed last year between the leaders of the international community (UNSC P5+1) and Iran, offers Iran sanctions relief in exchange for deep and verifiable limits on its nuclear program. The United Nations has certified that Iran is meeting its commitments. The US, however, has taken only limited reciprocal steps. It has dismantled nuclear-related sanctions, as well as "secondary sanctions," so that other countries are now permitted to engage in trade with Iran in the previously prohibited energy, shipbuilding, auto, and financial-services sectors. Unilateral sanctions related to Iran’s human rights record and alleged support of terrorism, however, remain in place. This significantly limits the ability of American companies to do business with Iran.
In addition, the US bars Iran access to the American financial system and restricts dollar-denominated trading with Iran. This makes it difficult for companies to negotiate large oil and aviation deals, which are typically financed in dollars. Foreign banks that are legally free to engage with Iran fear being caught up in American sanctions. That depresses trade and gives Iran a legitimate complaint about delayed economic promises of the nuclear agreement.http://lobelog.com/states-cast-shadow-over-iran-nuclear-deal/#more-34537