Iran to Sue the U.S. Over Carpet Sanctions

The head of the National Carpet Center of Iran has stated that the country will file a lawsuit against the United States in international forums due to the sanctions on Iranian handmade carpets. According to the Islamic Republic News Agency (IRNA), Farshid Dastpak emphasized on Saturday, August 6, that Iranian handmade carpets "belong to the Iranian nation" and described the U.S. sanctions as a "mistake," stating: "According to international protocols, anything that belongs to a nation cannot be sanctioned." Dastpak added that the National Carpet Center and related unions are working to remove handmade carpets from the sanctions list based on international protocols and conventions that Iran is a part of. Carpets are one of Iran's main export products after oil and petroleum products. IRNA reports that Iranian carpets are exported to 80 countries worldwide, with the U.S. accounting for 30% of these exports, making it one of Iran's most important markets in this regard. However, following the U.S. withdrawal from the JCPOA, the U.S. Treasury Department revoked the licenses for American companies to import carpets on July 6. The U.S. has previously banned the import of Iranian carpets for decades until the Bill Clinton administration in the 1990s lifted the ban on carpets, pistachios, caviar, and dried fruits as a goodwill gesture. In 2010, however, the U.S. once again banned the import of Iranian carpets in response to the Islamic Republic's nuclear activities. According to IRNA, prior to that, Iran exported $80 million worth of carpets to the U.S. annually, which dropped to zero due to the 2010 sanctions. The news agency added that the nuclear agreement had revitalized carpet exports to the U.S., reaching $90 million in 2016, although these exports are now once again at risk due to the re-imposition of sanctions. The U.S. withdrew from the JCPOA on May 8, and subsequently, the U.S. State Department announced that a new round of severe sanctions against Iran would be implemented starting August 4, with the next phase starting November 4. Iran, which has deemed the U.S. withdrawal from the JCPOA illegal from the outset, filed a lawsuit at the International Court of Justice on July 16 due to the unilateral withdrawal of the U.S. from this international agreement and the return of its extraterritorial sanctions. The U.S., however, has called this lawsuit "baseless."