The following post on the website of the National Iranian American Council, entitled "Organizations Call for Obama to Allow Medicine and Humanitarian Trade with Iran," appeared 2/7/13.
Washington, DC - Twenty-five organizations called on President Obama yesterday to ensure that existing U.S. sanctions on Iran do not block
access for medicine, food, and basic humanitarian goods for Iranian
civilians. In a letter led by the Friends Committee on National
Legislation (FCNL) and signed by NIAC and other anti-war, human rights,
and humanitarian organizations, the groups urged the President to exempt
humanitarian transactions from sanctions against Iran’s banking sector.
While Obama Administration officials have
reiterated that sanctions on Iran do not specifically “target” medicine
or food, the broad measures aimed at Iran’s economy--combined with the
Iranian government’s failure to manage the situation--have led to widely
reported medicine shortages inside the country.
The letter to the President notes that,
although food and medicine are technically exempt from sanctions passed
by Congress and enforced by Treasury, the White House has imposed
sanctions on Iranian banks by Executive Order that make no such
humanitarian distinction. So, while actual humanitarian goods are not
prohibited for sale to Iran, most of the banking channels through which
those goods can be sold are indeed blocked by sanctions. As a result,
there remain few legal banking channels through which to conduct
medicine and food sales, family remittances, and other permissible
transactions. And private companies and banks are increasingly unwilling
to invest the resources and take the risks required to navigate those
channels.
In response to the growing reports of
medicine shortages in Iran and the sanctions’ negative humanitarian
impacts, the U.S. Treasury did release a guidance yesterday aimed at
clarifying ambiguities and providing reassurance to businesses and banks
regarding humanitarian exports to Iran.
The document notes that non-U.S. banks
are allowed to facilitate transactions of humanitarian goods and other
items that have been exempt from sanctions, though it reiterates that
those transactions cannot include financial institutions designated
under WMD or terrorism sanctions--which means they cannot involve any
major Iranian bank.
At the same time, European Union
sanctions similar to U.S. sanctions against major Iranian banks are
coming under increasing scrutiny. An EU court yesterday ruled that the
body had not properly demonstrated Bank Saderat’s linkage to Iranian WMD
programs, and thus ruled that the sanctions on the bank must be
removed. A similar ruling was issued by another EU court the previous
week regarding Bank Mellat, in addition to prior rulings against
sanctions on a private Iranian bank. The EU can appeal the decision.
The letter to President Obama is included below and a PDF is available at the website of the Friends Committee for National Legislation.
February 4, 2013
SUBJECT: Open Channel for Food and Medicine to Iran
Dear President Obama,
We write
to express our deep concern for Iranian civilians who have not been able
to access life-saving medicines and humanitarian goods inside of Iran,
which has been caused in part by U.S. sanctions against Iran. We urge
your Administration to take all necessary steps to ensure that licensed
humanitarian goods are not prevented from reaching the people of Iran as
a result of U.S. sanctions imposed on the Iranian banking sector.
Thomas
Pickering, former U.S. ambassador to the United Nations and
Undersecretary of State for Political Affairs, expertly summarized the
crux of this problem posed by U.S. sanctions. Referring to U.S.
sanctions on the banking sector that block purchases of humanitarian
goods, he explained on October 1, 2012: "we issue licenses for sales of
food and medicine to Iran, but it is not legal for them to pay for it."
Various recent reports have illustrated the grave impact that the
shortages of life-saving medicines and humanitarian goods inside Iran
have had on ordinary civilians:
In an October 2012 report on the human rights situation in Iran, U.N. Secretary General Ban Ki Moon spelled out how sanctions block Iranians from accessing food and
medicine, noting that "Even companies that have obtained the requisite
license to import food and medicine are facing difficulties in finding
third-country banks to process the transactions. Owing to payment
problems, several medical companies have stopped exporting medicines to
the Islamic Republic of Iran, leading to a reported shortage of drugs
used in the treatment of various illnesses, including cancer, heart and
respiratory conditions, thalassemia and multiple sclerosis.”
On November 23, 2012, the BBC reported:
“Hospitals, clinics and pharmacies in Iran are running out of medicine
as the government cuts health funding because of international
sanctions, putting the lives of thousands of people at risk.”
Recent reports by The Financial Times, Al Monitor and the International Civil Society Action Network
indicate that a growing number of Iranians do not have access to
life-saving medicines. As this legislative record makes clear, Congress
has established some protections to help humanitarian goods reach the
people living under sanctioned regimes. Under the Trade Sanctions Reform
and Export Enhancement Act of 2000 (TSRA) the export of licensed
medicines, medical devices, agricultural commodities, and food are
exempt from sanctions. Congress has explicitly reaffirmed this policy in
four acts authorizing sanctions on Iran which you have signed into law,
including the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010; the 2012 National Defense Authorization Act, the
Iran Threat Reduction and Syria Human Rights Act of 2012, and the 2013
National Defense Authorization Act.
While
congressional sanctions distinguish between sanctionable activities and
exempt humanitarian transactions, executive order sanction 13382 affects
all of Iran’s largest banks and does not specify an exception for
humanitarian transactions. In addition, the humanitarian licenses issued
by the U.S. Treasury Department’s Office of Foreign Assets Control
(OFAC) expressly prohibit not only the direct involvement of these
banks, but also their indirect involvement. We appreciate your
Administration issuing new regulations on October 22, 2012 that allow
U.S. companies to sell certain medicines and medical supplies to Iran
without first seeking a license from the Office of Foreign Assets
Control. However, as the New York Times
recently reported, “the exporters [of medicines] still face troubles
getting paid” and a result, “virtually no American or European bank
wants to be involved in financial transactions with Iran.” To ensure
that Iranian civilians are not barred from accessing food and medicine,
humanitarian transactions must be exempted from banking sanctions.
The
current impasse with Iran over its nuclear program should not prohibit
the export of life-saving medicines which millions of Iranian civilians
depend on. We urge your Administration to take all appropriate steps to
ensure authorized humanitarian transactions regarding Iran are not
obstructed by U.S. sanctions. As a first step, we hope that your
Administration would provide a clear statement that it is not the policy
of the United States to in any manner prohibit permissible humanitarian
transactions.
Sincerely,
American Friends Service Committee
Arms and Security Project at the Center for International Policy
Campaign for Peace and Democracy
Center for Interfaith Engagement—Eastern Mennonite University
Church of the Brethren
Conference of Major Superiors of Men
Fellowship of Reconciliation
Friends Committee on National Legislation
Havaar: Iranian Initiative Against War, Sanctions and State Repression
International Campaign for Human Rights in Iran
International Civil Society Action Network (ICAN)
Just Foreign Policy
Mennonite Central Committee U.S. Washington Office
National Iranian American Council
Orthodox Peace Fellowship
Peace Action
Peace Action West
Peace X Peace
Physicians for Social Responsibility
Presbyterian Church (U.S.A.)
Progressive Democrats of America
The Peace Alliance
The Student Peace Alliance
United Methodist Church—General Board of Church & Society
Women’s Action for New Directions
Cc: Vice President Joseph Biden
Secretary of State John Kerry
Acting Secretary and Deputy Secretary of the Treasury Neal Wolin
National Security Advisor Thomas Donilin
Undersecretary of State for Economic Growth, Energy, and the Environment Robert Hormats
Undersecretary of State for Political Affairs Wendy Sherman
Undersecretary of the Treasury for International Affairs Lael Brainard
Assistant Secretary for Economic and Business Affairs Jose Fernandez
Deputy Assistant Secretary for Counter Threat Finance and Sanctions Peter Harrell
Director of the Office of Foreign Assets Control (OFAC) Adam Szubin