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WASHINGTON, DC — In a recent piece for Politico, Chris Schroeder describes an exciting new generation of Iranian entrepreneurs who are ambitious, highly educated and already “see the world outside of Iran every day—often in the form of global news, TV shows, movies, music, blogs, and startups.” As the Iranian economy prepares to open up to the world as part of an anticipated nuclear agreement, US companies could profit tremendously from engaging with this staggering trove of human capital.
But in a report issued by the Center for a New American Security, former Senior Advisor to the Undersecretary of Terrorism and Financial Intelligence at the U.S. Treasury Department, Elizabeth Rosenberg, suggests that U.S. companies may still miss out on these opportunities, even if nuclear-related sanctions are lifted with an agreement. They will remain bound by “a comprehensive trade and investment embargo, the architecture of which is not widely viewed as nuclear-related.”
Absent U.S. commercial competition, the report claims, European, Asian, and Middle-Eastern businesses, “less deterred by the prospect of violating sanctions,” will be poised to fill that void.
The report recommends that the Treasury department allow U.S. companies to bypass these non-nuclear restrictions, putting them “on an equal footing with global businesses” to compete for “lucrative business opportunities.”
It also notes that “creating opportunities for U.S. companies to engage in Iran” by easing these restrictions “would constitute a form of constructive, commercial diplomacy.” This, according to the report, would encourage “productive engagement between Iran and the United States on areas of continuing security concern.”
The report also emphasizes the need to keep “the incentives for Iran’s continued adherence in place” by intensifying the economic benefit Iran receives through compliance. Even without nuclear sanctions, the report explains, international businesses may avoid engagement with Iran to avoid unknowingly falling into the tangled nets of the U.S. sanctions regime. American and European officials should mitigate this confusion by offering “an unprecedented level of specific detail on the degree of continuing exposure to U.S. sanctions for non-U.S. banks and companies,” thereby minimizing confusion and maximizing clarity.
To address the “substantial new requirements associated with the removal of sanctions,” the report also recommends that the US Congress give both the State and Treasury Departments the resources they need to “create a robust group of officials” dedicated to “engaging the public and the private sector about the changes in Iran sanctions.” This work would also include enforcing remaining sanctions imposed on Iran and issuing license authorization for parties to trade with Iran when it fell within the U.S.’s foreign policy interest.
Preserving the deal is a matter of making the benefits of cooperation startlingly vivid, and the consequences of defiance even more so. With that in mind, the report concludes, “the lifting of sanctions may be the best insurance policy in nuclear diplomacy.”
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U.S. Companies Could Lose Out on Lucrative Business Opportunities in Iran, Report Finds
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