Will the Boeing-Iran deal go ahead?
Trump’s unfavorable negotiations over the Iran nuclear deal last week have come to the forefront of global trade issues.
In a business contract last year Boeing secured a $25 billion transaction for a hundred 777 and 737 aircraft with Iran Air. The contract was possible due to the license granted to Boeing from the Treasury Department of President Barrack Obama.
Even though allegations about Iran Air’s constant delivery of arms to President Bashar al-Assad’s civil war in Syria, the Obama administration believed such a business deal would help to develop Iran’s airlines and therefore promote positive relations with the nation after the previous reduction in trade sanctions after the Joint Comprehensive Plan of Action (JCPOA).
Boeing’s license remains in effect- despite efforts to disrupt the deal from a group of members of Congress.
The JCPOA’s inclusion in the security interests of the United States highlighted by Trump twice previously, as required every 90 days by Congress, was not re-emphasized in a more recent statement by the president whilst not actually removing the US from the business deal entirely. Activity from authority over the Boeing deal has also been quite which could produce further issues for the President.
Reuel Marc Gerecht spoke at the Atlantic Council at the beginning of October about how “the question of what the president is going to do with the Boeing deal… remains unclear”. As the senior at the Foundation for Defense of Democracies Gerecht goes on to say “I think one has to assume that if they remain unclear much longer, then the likelihood is that the president will allow President Obama’s license to stand for those sales, which, of course, if nothing else, philosophically, blows a bit of hole in the administration’s position, since there is no one in the administration who believes those planes are going to just be used for commercial travel.”
What will Trump do now?
The $25 billion prospect from the deal will also provide jobs and boost US exports, a commodity that Trump would definitely have to give up if the Boeing deal does not go ahead. Gerecht suggested that Trump could hope to avoid attention through bypassing the issue and allowing its execution.