IRAN: New sanctions proposed — cutting off the caviar, and more...

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A Democratic senator unveiled a new Iran sanctions bill today that would tighten the current trade ban with that country, expand financial sanctions and close loopholes that have allowed some U.S. firms to create subsidiaries to invest in Iran.

Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, said his bill would incorporate elements of an earlier Iran sanctions bill, but would take ‘a much stronger stance on Iran sanctions.’

Baucus said the bill is written to comply with World Trade Organization rules and to allow the continued, limited sale of agricultural and humanitarian goods. ‘Slowing the flow of funds and nuclear assistance to Iran’s current regime is in the interest of the American people,’ Baucus said.

His bill would require the president to target the assets of Iranian military and government officials who are subject to sanctions under the International Emergency Economic Powers Act.

Baucus introduced the bill as President Bush and European Union leaders are threatening to impose new financial sanctions on Iran unless the country scales back its nuclear ambitions and allows international nuclear inspectors to examine its facilities. Baucus’ proposed bill would also tighten the trade ban that President Bush established with an executive order. The bill would end an exception that Bush made for the export of spare parts for U.S. civilian aircraft. And while current law allows businesses to import Iranian nuts, dried fruit, carpets and caviar to the United States, Baucus’ bill would not provide those exceptions.

A detailed summary and full text of the proposed bill, including a comparison to current law, is available online.

— Nicole Gaouette in Washington, D.C.