US exports to Iran have jumped dramatically during president George Bush's years in office in spite of his tough rhetoric against the Tehran government and the imposition of fresh economic sanctions.
Analysis of US government trade figures published today by the Associated Press revealed a near tenfold increase over the last seven years in sales to Iran.
Goods include cigarettes, aircraft spare parts, bras, musical instruments, films, sculptures, furs and golf carts and/or snowmobiles.
Although the sums are small, the disclosure is a political embarrassment for the US, coming at a time when it has been putting pressure on European governments, banks and companies to cut ties with Tehran.
John Rankin, a US Treasury spokesman, today acknowledged there had been an increase but attributed this mainly to a change in legislation in 2000 that allowed the export of agricultural and medicinal goods. Before that, trade had been effectively zero.
He played down the exports as "miniscule," a quarter of 1% of all Iran's imports.
The AP analysis found data suggesting military equipment had been exported, even though there are sanctions in place designed to prevent this. The Treasury is still investigating but Rankin said initial findings indicated there had been no such sales and described it as a "clerical error".
US government figures show exports to Iran from 2001 to 2007 totalling $546m. It exported roughly $146m worth last year, compared with $8.3m in 2001, Bush's first year in office.
The US has had sanctions in place against Iran since the Tehran embassy hostage crisis almost 30 years ago. During Bush's presidency, relations with Iran have become increasingly strained, with Washington claiming that Iran has embarked on a programme to build a nuclear weapon, which Tehran denies. It also blames Iran for a flow of explosive devices into Iraq that have been used against US and British troops.
One of the Bush's administration's main instruments for putting pressure on Iran has been sanctions. The Bush administration today announced new financial sanctions against Iranian officials and companies allegedly involved in its nuclear programme.
In spite of the sanctions, Tehran is awash with goods from the US, mainly imported indirectly, usually through the United Arab Emirates.
Karim Sadjadpour, an Iranian specialist at the Washington-based Carnegie Endowment for International Peace, said: "You can get everything from an iPod to a Chevrolet in Tehran. I think this is a good thing. The more the Iranian population is exposed to American culture, which includes American products, the better for Iranian progress."
He added: "The more economic US penetration of Iran the greater the likelihood of economic and political reform within Iran."
The Treasury department received at least 4,523 license applications for Iran exports in the last seven years, of which it approved at least 2,821 and denied only about 178.
US export records show $148,000 worth of weapons and other military gear were exported, including $106,635 in rifles and $8,760 in rifle parts and accessories shipped in 2004. The records show too that shipped to Iran were at least $13,000 in "aircraft launching gear and/or deck arrestors," equipment needed to launch jets from aircraft carriers.
The Treasury said today it was highly unlikely there had been any such sales and suggested that the data had been reported incorrectly by officials.
Rankin denied there was a contradiction between the rise in US exports and US calls on European governments and companies to cease trading with Iran. He said the European companies were involved with finance and banking whereas the US exports involved food and medicine. He said: "Food and medicine are not tools we are going to use to put pressure on the regime."
The US vice-president, Dick Cheney, the leading hawk in the Bush administration towards Iran, warned Europeans last year that if their firms remain in Tehran, they are going to have problems doing business in the US.
The under-secretary for political affairs at the US state department, Nicholas Burns, and the under-secretary at the Treasury, Stuart Levey, have made frequent trips to reinforce this warning.
US exports to Iran include:
Cigarettes: $158m
Commerical aircraft parts: $620,000
Bras: $101,000
Perfume: $8,900
Cosmetics: $96,000
Musical instruments and parts: $30,000
Sculptures: $175,000
Golf carts and/or snowmobiles $21,000
Movies: $4,000
Furs: $3,300
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
