US-Swiss Mechanism May Not Increase Humanitarian Exports to Iran, Sen. Warren Says
The U.S.-Swiss joint mechanism intended to provide companies a path to exporting humanitarian goods to Iran may not convince risk-averse banks and businesses to export to the country, Sen. Elizabeth Warren, D-Mass., said in a Feb 28 letter to Treasury Secretary Steven Mnuchin and Secretary of State Mike Pompeo. Although the mechanism, which became operational Feb. 27 (see 2002270017), sets high due-diligence standards for users, the State Department expects more exporters to begin using it after announcing the first transaction through the system in January (see 2001300020).
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But Warren said she is “concerned that this measure will not be able to change the ongoing climate of reluctance among” exporters to Iran, especially as the country requires medical supplies due to the coronavirus outbreak. The “limited nature” of sanctions exemptions to Iran and “the fact that trade in general with Iran has been circumscribed by U.S. sanctions” makes it difficult for “urgently needed medical goods” to be exported to Iran (see 1912120027). “I seek an assurance that every reasonable effort is being made by the United States to ensure the availability of medicine and other non-sanctionable humanitarian items to the Iranian people to help prevent the further spread of the coronavirus,” Warren said.
Warren also asked Mnuchin and Pompeo to provide information about which banks or companies have so far used the mechanism, known as the Swiss Humanitarian Trade Arrangement. She also requested they provide information on any steps the administration has taken to consult with non-governmental organizations and Iranian health care providers to assess the impact of U.S. sanctions on humanitarian exports and asked whether the Treasury and State Departments have conducted talks with Iran about improving trade of humanitarian goods to combat the coronavirus.