Trade groups oppose expanded Iranian sanctions

Trade groups oppose expanded Iranian sanctions    A group of trade associations voiced opposition Tuesday to a legislative effort that calls for expanding U.S. sanctions on Iran.
   The proposed legislation (H.R. 2194 and S. 2799) would 'significantly undermine the U.S. national interest,' said the nine associations in a letter to the White House's National Economic and National Security councils.
   The groups that signed the letter are the Business Roundtable, Coalition for Employment through Exports, Emergency Committee for American Trade, National Association of Manufacturers, National Foreign Trade Council, Organization for International Investment, USA*Engage, U.S. Chamber of Commerce, and U.S. Council for International Business.
   'The proposed sanctions would incite economic, diplomatic and legal conflicts with U.S. allies and could frustrate joint action against Iran,' the associations warned. 'They could prohibit any U.S. company from transacting routine business with critical partners from around the globe even if these transactions have no bearing on business with Iran. These provisions could encompass a very large portion of the global trade community with consequences that in our view have not been adequately assessed.'
   The associations said the proposals could also have a large impact on the U.S. Export-Import Bank's financing activities and its ability to establish overseas agency partnerships.
   In addition, the associations noted the proposals eliminate the discretion afforded the president under the 1996 Iran Sanctions Act with regard to decisions involving the initiation of investigations, which sanctions would be imposed, and the possible issuance of waivers.
   'The history of similar efforts demonstrates that such a unilateral approach would provoke a negative response from our allies and would divert attention from effective, coordinated response to Iran's nuclear ambitions,' the associations told the White House. 'We urge you to weigh in vigorously with Congress to eliminate these highly problematic proposals.'