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Boeing, Airbus Can No Longer Sell Planes To Iran

12 May 2018

Bernstein's analysts said there may be as much of a chance for Boeing to profit on an Iran fallout as not. "There's an American withdrawal from the deal, but the deal is still there".

Trump's resolution on Iran deal does not indicate the end for Boeing.

Speaking to the France Culture radio station, Le Maire called Trump's decision an "error", and accused the American president of trying to turn the USA into the "economic police officer of the planet".

The deals are now in limbo after US President Donald Trump announced he was pulling his country out of the 2015 agreement.

Other manufacturers said they were reviewing the USA decision and emphasized their compliance with export controls.

Airbus, which is subject to the US license because it makes at least 10 percent of its aircraft components in the USA, says it will abide by the new USA sanctions but it could take "some time" to determine the full impact on the industry.

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The effect of new sanctions against Iran by the United States government however could well impact European Union companies. Boeing at the time said the Iran Air deal would support 100,000 U.S.jobs.

In a statement Tuesday, Airbus spokeswoman Mary Anne Greczyn said the company is "carefully analyzing the President's announcement and will be evaluating next steps".

The EU also intends to protect Iranian businesses from the US' economic sanctions in a bid to keep the Joint Comprehensive Plan of Action in place (JCPoA). "That is why Iran came to the table". Now that agreement is in doubt.

Trump has vowed to soon reimpose economic sanctions against Iran that were ended in 2015 when Iran agreed to curbs on its nuclear program, and stiffen them in hopes of forcing Iran into new talks. "That's what we want to do again".

Carl Bildt, the former leader of Sweden who is now co-chair of the European Council on Foreign Relations, highlighted that the sanctions would have the biggest impact beyond America's borders. A day earlier, Defense Secretary Jim Mattis told a congressional hearing the USA would "continue to work alongside our allies and partners to ensure that Iran can never acquire a nuclear weapon, and will work with others to address the range of Iran's malign influence".

The announcement means Boeing will lose out on a lucrative new market for jetliners, but the move will likely cost the company less than it will Airbus.

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German industrial equipment manufacturer Siemens, which has multi-billion-dollar contracts with Iran for rail, power plant and other projects, said it is assessing the possible impact but expects it to be immaterial. The sanctions also limit foreign companies from dealing with Iran by prohibiting them from using American banks in their operations if they do not sever links with Iran.

As explained by the State and Treasury departments, USA measures will be implemented in several phases.

Trump denounced the accord, completed under his predecessor Barack Obama, as a "horrible, one-sided deal that should have never, ever been made" as it did not cover Iran's ballistic missile programme or its role in Middle East conflicts.

As @realDonaldTrump said, U.S. sanctions will target critical sectors of Iran's economy. In recent months, the largest USA exporter had quietly lined up other customers for some of the 777-300ER jetliners once intended for Iran Air this year.

Boeing lost out on billions when President Trump pulled out of the Iran nuclear deal. "The ball is in the E.U.'s court", she said. Analysts also expect that US companies will respond to higher prices by drilling more. "The decision demonstrates that the USA has decided that confrontation with Iran is both necessary and inevitable, regardless of what European allies think".

An expert on the issue meanwhile warned that it was "time for Europe to step up" to ensure that the deal could continue to work. "But overall, companies will be scared".

Europeans scramble to save Iran deal after Trump reneges
Actually, that was Iranian money tied up in central and private banks around the world that had been frozen because of sanctions. Former Canadian prime minister Stephen Harper has added his name to a full-page ad in the New York Times with a message to U.S.

Under the terms of the JCPOA, Iran is now in a position to accuse the US of violating the agreement.

Boeing, Airbus Can No Longer Sell Planes To Iran