How the US taxpayer may subsidize the purchase of Boeing jets by Iran
If you're an American taxpayer, you may be subsidizing the purchase of Boeing jets by Iran
through the Export-Import Bank.
The Ex-Im bank provides government loan guarantees to a handful of
major corporations — coincidentally, major political donors — that allow
them to sell goods to foreign countries without worrying about whether
or not they’ll actually get paid. If a country should fail in its
obligations, Uncle Sam will make the debts good. The American taxpayer
ends up on the hook for the cost of expanding corporate business in
suspect nations with wobbly economies. Yet the small number of
corporations who benefit from the Ex-Im bank are all quite wealthy, and
capable of obtaining loan guarantees privately through insurance. The
taxpayer is made to do what the market is ready to do just because it
saves these corporations money.
One country where the Ex-Im bank has not operated in recent years is
Iran. This is because of the American sanctions that will be rejected
as a part of approving the Iran Deal. The Congressional Research
Service has recently published a document detailing the ways in which
the Ex-Im bank will be freed to undertake loan guarantees with Iran.
The CRS piece was written by one of their research specialists in
foreign policy legislation, Dianne Rennack. The complete report can be
viewed at the end of this post.
According to the report, restrictions on the Ex-Im bank working with
Iran are going to be released by the repeal of a number of executive
orders (E.O.). E.O. 13590 prohibits the Ex-Im bank from entering into
relationships with individuals named personally in the sanctions, such
as Qassem Suleimani, the head of Iran’s unconventional warfare program. The Iran deal will repeal this order.
E.O. 13622 authorizes sanctions on foreign financial organizations
associated with Iran’s state sponsorship of terrorism. That will also
be repealed under the deal.
E.O. 13628 freezes money and property owned by named human rights
violators. Under the deal, their property will be returned to them, and
loan guarantees from the Ex-Im bank will also become available to them.
Finally, the repeal of E.O. 13645 will allow loan guarantees related
to Iran’s oil industry. Petroleum companies will be able to fund their
operations in Iran without worrying about whether Iran will pay them,
because the American taxpayer will.
Iran has announced that is planning to buy 80 to 90 Boeing and Airbus aircraft every year. Boeing is one of the corporations that benefits from the Ex-Im bank, and it has held the threat of moving its business offshore over the head of the Congress during debates about the bank. Humanitarian safety concerns
about Iran’s aging aircraft have already impelled the United States to
waive restrictions on sales of repair parts for older aircraft. The
Senate might permit Iran being allowed to buy new commercial aircraft on
the same basis. Having those aircraft financed not by Iran but by the
American taxpayer, however, will remain controversial.
And those of you who voted for President Soetro have something else of which you can be ashamed.
Labels: Barack Hussein Obama, Boeing, designated terror organization, Iran Joint Comprehensive Plan of Action, Iran sanctions regime, Iranian nuclear threat, Qassem Suleimani