U.S. exports to Iran grew tenfold under Bush

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By Sharon Theimer

WASHINGTON (AP) — Nuclear weapons? No way. But there are plenty of items on Iran's shopping list the United States is more than happy to supply, including cigarettes, brassieres, bull semen and more.

U.S. exports to Iran grew more than tenfold during President Bush's years in office even as he accused it of nuclear ambitions and sponsoring terrorists. America sent more cigarettes to Iran - at least $158 million worth under Mr. Bush - than any other product.

Other surprising shipments during the Bush administration included fur clothing, sculptures, perfume, musical instruments and military apparel. Top states shipping goods to Iran include California, Florida, Georgia, Louisiana, Michigan, Mississippi, New Jersey, North Carolina, Ohio and Wisconsin, according to an analysis by the Associated Press of seven years of U.S. government trade data.

Despite increasingly tough rhetoric toward Iran, which Mr. Bush has called part of an "axis of evil," U.S. trade in a range of goods survives on-again, off-again sanctions originally imposed nearly three decades ago. The rules allow sales of agricultural commodities, medicine and a few other categories of goods. The exemptions are designed to help Iranian families even as the United States pressures Iran's leaders.

"I understand that these exports have increased. However, we believe that they are increasing to a segment of the population that we want to reach out to, we want to know and understand that the U.S. government, the U.S. people want to be friends with them, want to work with them to integrate them into the world economy and become partners in the future," State Department spokesman Gonzalo Gallegos said Tuesday when asked by reporters about the AP's findings.

Iran is a hot issue in Washington. The House plans a hearing Wednesday on U.S. policy toward Iran, and the Bush administration announced Tuesday it was freezing the U.S. assets of several people and entities accused of helping Iran develop nuclear weapons.

But the U.S. government seems uncoordinated on efforts to limit trade with Iran.

The Securities and Exchange Commission sought to shine a light on companies active in Iran, but stopped after business groups complained. The Treasury Department allowed some companies and individuals suspected of illegal trading with Iran to escape punishment. Yet the Bush administration also has collected millions of dollars in fines from trade-rule violators and pressed Congress without success to pass laws to strengthen enforcement.

The fact that the United States sells anything to Iran is news to some.

"Until you just told me that about Iran, I'm not sure I knew we did any business with Iran," said Fred Wetherington, a tobacco grower in Hahira, Ga., and chairman of Georgia's tobacco commission. "I thought because of the situation between our two governments, I didn't think we traded with them at all, so I certainly didn't know they were getting any cigarettes."

The United States sent Iran $546 million in goods from 2001 through last year, government figures show. It exported roughly $146 million worth last year, compared with $8.3 million in 2001, Mr. Bush's first year in office. Even adjusted for inflation, that is more than a tenfold increase.

Exports to Iran are a politically loaded but tiny part of U.S. trade. The United States counted more than $1 trillion in world exports last year. The value of U.S. shipments last year to Canada - America's top trading partner - was more than 1,000 times the value of shipments to Iran.

Top U.S. exports to Iran over Mr. Bush's years in office include corn, $68 million; chemical wood pulp, soda or sulfate, $64 million; soybeans, $43 million; medical equipment, $27 million; vitamins, $18 million; bull semen, $12.6 million; and vegetable seeds, $12 million, according to the AP's analysis of government trade data compiled by the World Institute for Strategic Economic Research in Holyoke, Mass. The value of cigarettes sold to Iran was more than twice that of the No. 2 category on the export list, vaccines, serums and blood products, $73 million.

Iran is a top customer of Alta Genetics Inc., a Canadian company with an office in Watertown, Wis., that sells bull semen, used to produce healthier, more profitable cattle. "The animals we're working with are genetically superior to those in many parts of the world," said Kevin Muxlow, Alta's global marketing manager.

Also getting Bush administration approval for export to Iran were at least $101,000 worth of bras; $175,000 in sculptures; nearly $96,000 worth of cosmetics; $8,900 in perfume; $30,000 in musical instruments and parts; $21,000 in golf carts and/or snowmobiles; $4,000 worth of movie film; and $3,300 in fur clothing.

Few people or companies asking U.S. permission to trade with Iran are turned down by the Treasury Department, the lead agency for licensing exports to sanctioned countries. During Mr. Bush's terms, the office has received at least 4,523 license applications for Iran exports, issued at least 2,821 licenses and 213 license amendments and denied at least 178, Treasury Department data shows.

Neither the Treasury data nor trade data compiled by the Census Bureau identifies exporters or specifies what they shipped. The AP requested those details under the Freedom of Information Act in 2005 and still is waiting for the Treasury Department to provide them.