News / Middle East

Column: Obama has Ample Authority to Relieve Iran Sanctions

European foreign policy chief Catherine, Ashton, left, and Iranian Foreign Minister Mohammad Javad Zarif, right, wait for the start of closed-door nuclear talks in Vienna, Austria, Tuesday, June 17, 2014
European foreign policy chief Catherine, Ashton, left, and Iranian Foreign Minister Mohammad Javad Zarif, right, wait for the start of closed-door nuclear talks in Vienna, Austria, Tuesday, June 17, 2014
As negotiations with Iran enter the home stretch this week in Vienna, the ability of the U.S. government to relieve economic sanctions on Iran is likely to emerge as a major factor in determining whether Tehran will accept significant restrictions on its nuclear program.
 
According to a new paper by Kenneth Katzman, an Iran expert at the Congressional Research Service, President Barack Obama has ample authority to satisfy Iran’s demands through the use of waivers and the expiration in 2016 of the only piece of US sanctions legislation that has a “sunset” clause, the Iran Sanctions Act (ISA).
 
Katzman, speaking Monday at the Atlantic Council, said that US administrations “have a tremendous amount of discretion” when it comes to applying sanctions because of the primacy given to the executive branch in the U.S. Constitution for conducting foreign policy.

Thus Obama can waive the sanctions which are of greatest concern to Iran – so-called secondary sanctions that threaten foreign companies that do business with Iran with exclusion from the U.S. market.

Congress, Katzman notes, does not get an “up or down” vote on presidential waivers.
 
While Iran has been subjected to U.S. sanctions since the 1979 hostage crisis, the really crippling multinational penalties came only under the Obama administration, after Iran restarted and accelerated a program to enrich uranium.

Sanctions run deep

The most biting sanctions were imposed following passage of United Nations Security Council resolution 1929 in June, 2010. Congress passed laws such as the Comprehensive Iran Sanctions,

Accountability and Divestment Act (CISADA), which threatened foreign banks that did transactions with sanctioned Iranian banks with losing their U.S. business.

That action – coupled with later expulsion of Iran from SWIFT, the Europe-based organization that regulates electronic financial messaging – effectively isolated Iran from the international banking system.
 
However, the U.S. president can waive those sanctions by instructing the secretary of the Treasury to write a report to Congressional committees asserting that the action is in U.S. national interests.

Similarly, the White House can stop applying the Fiscal 2012 National Defense Defense Authorization Act – which obliged foreign buyers of Iranian oil to significantly reduce their purchases of crude – for unlimited increments of 120 days by asserting that the waivers are “in the national security interest of the United States.”
 
Katzman, writing and speaking in his personal capacity and not on behalf of the U.S. government, envisions a process by which the Obama administration waives these key sanctions – assuming a nuclear deal is reached – for the next two years until the ISA sunsets.

That bill – first passed in 1996 and repeatedly renewed – is the only piece of sanctions legislation that has a scheduled expiration date, according to Katzman. It is due to expire on Dec. 31, 2016 – a month before Obama leaves office and sufficient time following a possible nuclear agreement to test Iranian compliance.
 
The end of ISA would reopen Iran to foreign investment in its oil and gas sector, enabling the Islamic Republic to boost production and exports, which have been reduced substantially in recent years.

Congress, of course, could try to extend the law but face a presidential veto that would be difficult to overcome.

Other sanctions
 
Other sanctions on Iran – related to its human rights record and support for groups on the U.S. State Department’s terrorist list – would remain in place. Congress has shown an inclination to try to pile on more sanctions even while negotiations are proceeding.

So far, however, the Obama administration has managed to hold Congress at bay.

As to concerns expressed by Iranians that U.S. policy toward Iran – which now includes new tentative talks on dealing with the Iraq crisis – will be radically changed by a new administration, Katzman notes that agreements reached in one administration are generally binding on another.

Examples include the strategic framework agreement signed with Iraq under the Bush administration in 2008.
 
Sanctions that prohibit U.S. companies from doing business with Iran – except for food, medicine and other humanitarian items – are likely to remain in place for some time.

But foreign subsidiaries of big U.S. multinationals could re-enter the Iranian market under the scenario envisioned by Katzman.
 
Cornelius Adebahr, a Europe expert at the Carnegie Endowment for International Peace, says he believes European firms will readily return to Iran if a long-term nuclear agreement is reached and they no longer face the threat of U.S. sanctions.

Trade delegations from France, Austria and a number of other European countries have visited Iran since the conclusion last fall of an interim nuclear deal but no big contracts have been signed.  
 
Iran is also looking for the release of some $100 billion in oil revenues currently locked up in foreign accounts as well as fresh investment and exports. For Europe to lift its own extensive web of sanctions, however, action must be synchronized with the United States.
 
“There is hardly any European company that would invest in or trade with Iran that does not at the same time have an interest in the U.S. market,” Adebahr wrote in companion paper to Katzman's analysis.

“That is why European firms would not do business with Iran as long as the specter of liability looms over their activities in the United States,” Adebahr wrote.

Barbara Slavin

Barbara Slavin is a senior fellow at the Atlantic Council’s South Asia Center and a correspondent for Al-Monitor.com, a website specializing in the Middle East. She is the author of a 2007 book, Bitter Friends, Bosom Enemies: Iran, the US and the Twisted Path to Confrontation, and is a regular commentator on U.S. foreign policy and Iran on NPR, PBS, C-SPAN and the Voice of America.

You May Like

Thousands of Ethiopian Israelis Rally Against Racism

PM Netanyahu says he will meet Damas Pakada, the Ethiopia-born Israeli soldier who was filmed being beaten by two policemen More

Ten Migrants Drown in Mediterranean, 4,800 Rescued

All of those rescued are being ferried to Italian ports, with some arriving on Italy's southernmost island, Lampedusa, and others taken to Sicily and Calabria More

HRW: Saudis Using US Cluster Bombs in Yemen

Human Rights Watch says photographs, video and other evidence have emerged indicating cluster munitions have been used in 'recent weeks' in airstrikes in Houthi stronghold in northern Yemen More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
From Aleppo To Berlin: Band of Brothers Escapes Civil Wari
X
Henry Ridgwell
May 03, 2015 1:12 AM
Hundreds of thousands of Syrians have fled the civil war in their country and journeyed to Europe by boat across the Mediterranean. It is a terrifying ordeal with dangers at every turn. A group of Syrian brothers and their friends describe their ordeal as they try to reach Germany. VOA's Henry Ridgwell reports. ...
Video

Video From Aleppo To Berlin: Band of Brothers Escapes Civil War

Hundreds of thousands of Syrians have fled the civil war in their country and journeyed to Europe by boat across the Mediterranean. It is a terrifying ordeal with dangers at every turn. A group of Syrian brothers and their friends describe their ordeal as they try to reach Germany. VOA's Henry Ridgwell reports. ...
Video

Video Rural Nepal Suffers Brunt of Quake’s Devastation

Nepal is still coming to grips with the full extent of the devastation and misery caused by last Saturday’s magnitude 7.8 earthquake. Some of the hardest-hit communities have been cut off by landslides making it difficult to assess the precise toll. A VOA News crew has been among the first to reach a few of the smaller, remote communities. Correspondent Steve Herman reports from the Sindhupolchak district, east of Kathmandu, which suffered greatly in Nepal’s worst quake in more than 80 years.
Video

Video Black Families Use Baltimore Case to Revisit 'Police Talk'

Following Freddie Gray’s death in police custody this month, VOA interviewed black families throughout the eastern U.S. city of Baltimore about how they discuss the case. Over and over, parents pointed to a crucial talk they say every black mother or father has with their children. Victoria Macchi has more on how this conversation is passed down through generations.
Video

Video Middle East Atheist Channel Defies Taboo

In Egypt, a deeply religious country in a deeply religious region, atheism is not only taboo, it is dangerous. It is sometimes even criminal to publicly declare nonbelief. Despite the danger, one group of activists is pushing back with a new online channel that defends the right not to believe. VOA’s Heather Murdock reports.
Video

Video Nepal Quake Survivors Tell Their Stories

Against all hope, rescuers have found a few more survivors of the devastating earthquake that hit Nepal last Saturday. Mountain climbers and hikers trapped in remote places also have been airlifted to safety, and aid is finally reaching people in the areas closest to the quake's epicenter. Survivors and rescuers are now recounting their experience. Zlatica Hoke has this story.
Video

Video Lessons for Germany, Europe Remain on Anniversary of WWII's End

The 70th anniversary of the end of World War II will be marked May 8-9 in all European countries except Germany, which lost the war. How is the war viewed there, and what impact is it still having? From Berlin, VOA’s Al Pessin reports.
Video

Video 'Woman in Gold' Uses Artwork as Symbol of Cultural Identity

Simon Curtis’ legal drama, "Woman in Gold," is based on the true story of an American Jewish refugee from Austria who fights to reclaim a famous Gustav Klimt painting stolen from her family by the Nazis during World War II. It's a haunting film that speaks to the hearts of millions who have sought to reclaim their past, stripped from them 70 years ago. VOA's Penelope Poulou reports.
Video

Video Nepal Town Destroyed By Quake Counts Itself Lucky

Foreign search teams on Wednesday began reaching some of the communities outside Kathmandu that suffered worse damage than Nepal’s capital from last Saturday’s massive earthquake. VOA Correspondent Steve Herman is in Sankhu - a town of about 10,000 people - where there is relief the death toll is not higher despite widespread destruction.
Video

Video First Surgical Glue Approved for Use Inside Body

While medical adhesives are becoming more common, none had been approved for use inside the body until now. Earlier this year, the first ever biodegradable surgical glue won that approval from the U.S. Food and Drug Administration. VOA’s Rosanne Skirble reports on the innovation and its journey from academia to market.
Video

Video Somali Hotel Chain Owner Strives to Make a Difference

Many in the Somali diaspora are returning home to make a new life despite the continuing risks. Since 2011 when a military campaign against Al-Shabab militants began making progress, members of the diaspora community have come back to open hospitals, schools, hotels, restaurants and other businesses. Abdulaziz Billow in Mogadishu profiles the owner of a chain of hotels and restaurants who is helping to bring change to the once-deadly Somali capital.
Video

Video Study: One in Six Species Threatened with Extinction

Climate change is transforming the planet. Unless steps are taken to reduce global warming, scientists predict rising seas, stronger and more frequent storms, drought, fire and floods. As VOA’s Rosanne Skirble reports, a new study on species extinction underscores the need to take action to avoid the most catastrophic effects of rising temperatures.
Video

Video Taviani Brothers' 'Wondrous Boccaccio' Offers Tales of Love, Humor

The Italian duo of Paolo and Vittorio Taviani have been making movies for half a century: "The Night of the Shooting Stars," "Padre Padrone," "Good Morning, Babylon." Now in their 80s, the brothers have turned to one of the treasures of Italian culture for their latest film. VOA’s Carolyn Weaver reports.
Video

Video Child Migrants Cross Mediterranean Alone, Face Unknown Future

Among the thousands of migrants making the deadly journey by boat to Europe, there are unaccompanied girls and boys. Some have been sent by relatives to earn money; others are orphaned or fleeing war. From a shelter for young migrants in the Sicilian town of Caltagirone, VOA's Henry Ridgwell reports.
Video

Video Baltimore Riots Shed Light on City’s Troubled Past

National Guard troops took up positions Tuesday in Baltimore, Maryland, as authorities tried to restore order after rioting broke out a day earlier. It followed Monday's funeral of a 25-year-old black man who died while in police custody earlier this month. VOA's Chris Simkins reports.
Video

Video Challenges Await Aid Organizations on the Ground in Nepal

A major earthquake rocked Nepal on Saturday and killed thousands, injured thousands more and sent countless Nepalese outside to live in makeshift tent villages. The challenges to Nepal are enormous, with some reconstruction estimates at around $5 billion. Aid workers from around the world face challenges getting into Nepal, which likely makes for a difficult recovery. Arash Arabasadi has the story from Washington.

Poll: Baltimore Police Charged

Poll archive

VOA Blogs