Negotiations in the U.S. Congress to Prevent Aircraft Sales to Iran

Dissatisfied representatives with the Boeing and Iran agreement in the U.S. Congress will negotiate a proposal on Thursday that, if approved, could prevent Boeing and other major modern passenger aircraft from being sold to Iran. The proposed plan will be discussed on Thursday, July 8, U.S. time, in one of the subcommittees of the House Financial Services Committee. Representatives will negotiate three barriers originally intended to prevent the sale of Boeing aircraft to Iran; one barrier to prevent the issuance of licenses from the Treasury Department, a barrier to stop the issuance of money transfer licenses by the same department, and finally barriers for the Export-Import Bank of the United States. Regarding the third point, if the proposed law is approved, the Export-Import Bank of the United States will be prohibited from investing in any transactions with any legal or natural person with Iran. Meanwhile, this bank will not have the right to provide services to other partners for financial transactions with Iran. The Export-Import Bank of the United States is a federal government export credit agency. This bank was established to finance and insure those foreign customers who are unable or unwilling to take credit risks. Credit risk exists when the lender is concerned about recovering their loan. Reuters reports that if the proposed law that Congress representatives are discussing is approved, it will also affect other companies; as more than 10% of the contents of all modern jets come from the United States. This amount is enough to require a license for their exports. Bill Huizenga, the Republican chairman of the Monetary Policy Subcommittee of the House Financial Services Committee, has expressed that he is 'deeply concerned' that easing regulations by the Obama administration would allow American companies to effectively contribute to arming the Iranian government. It is expected that Democratic representatives in Congress and the Obama administration will oppose this law. At the beginning of July, a senior member of Boeing, in response to criticisms from two Republican representatives regarding the company's initial agreements with Iran, referred to the statements of the President of the United States, indicating that the JCPOA is 'vital for U.S. national security.' Timothy Keating, in response to a letter from Congress, stated that Congress was aware that the sale of passenger aircraft to Iran was part of the nuclear agreement between Iran and six world powers. On the other hand, the website 'The Hill' quoted opponents of aircraft sales to Iran who expressed concerns that companies like Iran Air or Mahan Air might transfer weapons to Syria or Lebanon under the guise of commercial flights. The U.S. government considers the Iranian government to be the 'largest supporter of terrorism' due to its support for Hezbollah in Lebanon and the use of the Quds Force in other countries. According to reports, the memorandum between Boeing and Iran involves the sale of 34 wide-body aircraft, 46 narrow-body aircraft for short-haul flights, and 29 Boeing 737 NG (short-haul and medium-haul) for Iran Air through 'leasing' and credit rental. If this agreement is implemented, the delivery of the ordered aircraft will begin in 2017 and continue until 2025. Iran's air fleet is severely outdated due to sanctions dating back years. Some of the aircraft used in this fleet have been out of production for years. Available statistics indicate that nearly 2.5 million citizens used domestic flights in the first weeks of spring.