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US May 'Rethink' Imposing Sanctions During COVID-19 Pandemic, Pompeo Says

The U.S. may consider lifting sanctions on countries significantly impacted by the COVID-19 pandemic, Secretary of State Mike Pompeo said. While Pompeo said the U.S. provides exemptions for exports of humanitarian goods, he suggested the Trump administration will review its sanctions regimes. “Would we ever rethink it? Of course,” Pompeo said during a March 31 press conference. “We’re constantly trying to make sure we have our policies right.”

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More than 30 lawmakers said U.S. sanctions are compromising the ability of Iran’s health sector to combat the COVID-19 pandemic and hindering medical exports to the country, according to a March 31 letter to Pompeo and Treasury Secretary Steven Mnuchin. The lawmakers -- led by Sen. Bernie Sanders, D-Vt., and Reps. Alexandria Ocasio-Cortez, D-N.Y., and Ilhan Omar, D-Minn. -- asked the Trump administration to “substantially” suspend sanctions on countries significantly impacted by the virus, including on Iran’s civilian industries, banking sector and oil sector.

If the U.S. does not lift sanctions, the administration would be blocking exports of humanitarian goods to Iran, the letter said. The administration should work with “financial actors” and partner governments to “ensure that there is a practically accessible channel for the export of medical goods to Iran.” The U.S. previously announced a U.S.-Swiss joint mechanism intended to provide companies a path to exporting humanitarian goods to Iran (see 2002270017), but the mechanism has been criticized for not doing enough to encourage risk-averse companies to participate (see 2003030015).

The lawmakers said humanitarian trade exemptions show “an understanding that the spread of Coronavirus represents a shared threat and that U.S. sanctions were complicating efforts to get humanitarian supplies to the Iranian people.” The administration should also consider suspending sanctions in other countries facing outbreaks, the letter said. A United Nations commissioner recently said global sectoral sanctions should be suspended during the pandemic (see 2003250010).

While Pompeo said the administration may consider lifting sanctions, he stressed that exemptions are available. “When it comes to humanitarian assistance, medical devices, equipment, pharmaceuticals, things that people need in these difficult times, those are not sanctioned anywhere at any time that I’m aware of,” Pompeo said. “There’s no prohibition on moving humanitarian assistance into these difficult and challenging places.” Although exemptions are available, lawmakers and trade experts have said the threat and risk of violating U.S. sanctions are warding off international exporters (see 1912120027).