April 18, 2001

The Honorable Trent Lott
U.S. Senate
Washington, DC 20510

Dear Senator Lott:

USA*Engage, a coalition of more than 670 American companies and organizations, urges you to support a thorough review by the Administration of U.S. unilateral economic sanctions against Iran and Libya. We believe that these sanctions have been ineffective and counterproductive.  

            For the past four years USA*Engage has encouraged a debate on unilateral sanctions.  We have been encouraged by congressional efforts led by Senators Lugar, Hagel and Dodd, and Congressmen Crane and Dooley to bring rational consideration to the imposition of sanctions. We are also encouraged by Secretary Powell’s confirmation testimony urging careful consideration before enacting sanctions, by the review of sanctions programs he has initiated in the State Department, and his interest in developing “smart sanctions” policies.

The advent of a new Administration and the expiration of the Iran-Libya Sanctions Act (ILSA) on August 5 provide an opportunity to assess the experience of the six years since U.S. trade and investment with Iran was ended by Executive Order, the five years since ILSA was enacted, and the fifteen years of unilateral sanctions against Libya.  There should be no rush to judgment by replacing the expiring ILSA sanctions with new ones

U.S. sanctions on Iran and Libya are good examples of failed unilateral sanctions. While the objectives of U.S. policy toward Iran and Libya are inarguable, the sanctions have served only to exclude U.S. companies from Iran while that country’s needs for investment, civilian technology and capital goods are being met by other countries around the globe.  Thus, American farmers, workers and companies have sacrificed without any progress toward U.S. foreign policy objectives. In addition, Iran will hold an important presidential election on June 8, the outcome of which could be negatively affected by precipitous U.S. action on sanctions.

            It is in our national interest to be smarter about using economic sanctions to achieve foreign policy objectives. We urge you to view new sanctions legislation, specifically the renewal of ILSA, by pragmatic national interest standards.  These include:

·        the effectiveness of current policy after so many years;

·        the impact on U.S. relations with our allies and trading partners;

·        the long-term energy security of the U.S. at a time of manifest need for expanded energy sources;

·        the wisdom of excluding ourselves from the development of energy resources in two countries that lead the world in new projects.

We urge you to consider the original principles advanced by USA*Engage when it was begun in 1997:

1.      America’s values and interests are best advanced by sustained involvement in world affairs by both the public and private sectors;   

2.      the expansion of free market economies and higher living standards are crucial to both political freedom and respect for human rights;

3.      challenges to U.S. interests and the rule of law should be addressed as much as possible in concert with our allies and trading partners;

4.      the U.S. government should adopt a standard of ongoing accountability so that unilateral sanctions programs are evaluated by 

·        whether they achieve their intended results

·        the costs imposed on Americans in terms of lost jobs and reduced incomes

·        the damage done by sanctions to other national interests.

            We do not believe the current sanctions on Iran and Libya satisfy these criteria.  We also believe that linking these two countries together in a single legislative package is a mistake. We look forward to working with you as the new administration and the Congress review U.S. policy toward Iran and Libya.

Don Deline
Chairman