April 2, 2001

The Honorable J. Dennis Hastert
Speaker of the House of Representatives
Washington, DC 20515

Dear Mr. Speaker: 

            I am writing on behalf of the National Foreign Trade Council (NFTC), an association of more than 500 U.S. companies involved in international trade and investment, to urge you to support a thorough review of U.S. policy toward Iran, including the effectiveness of current sanctions, prior to congressional consideration of new legislation affecting Iran.

A serious review is indicated for a number of reasons:

• It is important for Congress to give the new Bush Administration time to take a fresh look at existing policies and to develop its own approach;
• Now that six years have passed, the effectiveness and costs of current sanctions on Iran need a fair and objective evaluation. This evaluation should be allowed to take place before present policies are extended;
• Our allies and trading partners have not followed our lead in sanctions policy toward Iran and it is important to evaluate whether unilateral U.S. sanctions on Iran can be effective in a globalized world economy
• The 1996 Iran-Libya Sanctions Act (ILSA), is an extra-territorial sanction against non-U.S. companies. ILSA’s extra-territorial reach will continue to have important negative diplomatic consequences if it is renewed and enforced
• Significant changes have taken place in Iran since sanctions against U.S. firms were imposed in 1995 and ILSA was enacted in 1996. A review of U.S. sanctions policy should reflect those changes.
  

ILSA expires on August 5 of this year. This allows time for the new Administration to formulate its policy toward Iran before Congress must act on ILSA. It further allows for a wide-ranging public debate on U.S. policy toward Iran. We look forward to participating in that debate and offering our view that the diplomatic and commercial cost of these sanctions has been high, that their impact on relevant Iranian policies has been minimal, and that a policy of engagement that includes an expanded private sector role can advance U.S. policy goals.

William A. Reinsch
President