Wisconsin Lawmakers' Proposal to Ban Economic Transactions with Iran

Two Republican lawmakers in Wisconsin, USA, have proposed a bill that would prevent the state from investing in companies that do business with Iran. According to the Associated Press, the proposed bill, introduced by Dale Koinga and Lee Voepel, two Republican members of the Wisconsin Congress, would prohibit the Wisconsin Investment Board from investing in companies that are creditors of Iran, own property or have economic activities in Iran, engage in transactions with the Iranian government, or deal with companies owned by the Iranian government. This ban would also include companies that provide goods and services in Iran that would be resold to the government or companies and institutions affiliated with the government, or whose distribution would be controlled by institutions related to the Iranian government. The Wisconsin Investment Board would have one year to divest its shares and investments in such companies that violate the regulations. The two Congress members who proposed this bill reminded the members of the Wisconsin State Assembly that passing this law is a reaction to the Obama administration's nuclear agreement with Iran. Under the nuclear agreement signed this summer between Iran and six world powers, part of the international sanctions against Iran will be gradually lifted in exchange for limiting Iran's nuclear activities. The bill's sponsors stated: "In the absence of proper and real leadership in Washington, this action is the least we can do." Dale Koinga, in an interview with the Associated Press, expressed hope that passing this bill would reduce the Iranian government's financial capabilities for military program development and prevent the transfer of advanced Western technologies to Iran. He added: "Small and medium-sized companies should reconsider their dealings with Iran." The Associated Press notes that according to statistics collected by the 'United Against a Nuclear Iran' organization, which opposes Iran's acquisition of nuclear weapons, over a thousand large companies currently conduct business with Iran. Research by this organization indicates that about 10 states in the USA have enacted regulations that prohibit state institutions and companies from contracting with companies active in Iran or force them to sell their shares and investments in such companies. Vicki Hiding, a spokesperson for the Wisconsin Investment Board, stated that this entity has approximately $1 billion invested in companies worldwide and uses the profits from these investments to pay state employees' salaries and pensions. She added that this entity does not have complete information regarding companies that deal with Iran or have invested in that country. If this proposal is approved in the Wisconsin State Assembly, the state investment board will be required to hire specialized risk assessment firms to identify companies active in Iran and evaluate the profits and losses resulting from divesting from these companies. The spokesperson for this entity expressed uncertainty about the potential costs of such extensive financial operations. She warned that removing companies due to dealings with Iran would limit this entity's investment options and added that the basis for our investments is not political and social considerations. It is still unclear how likely this proposed bill is to be approved. Even if the bill gains support from Republicans in the Wisconsin State Assembly, it will not be discussed or voted on before the beginning of the new calendar year. Leaders of both the Republican and Democratic factions in the Wisconsin State Assembly have not yet commented on this proposal.