Iran Buying More From US In Spite Of Tensions

There is a long-running debate in Congress and among trade experts over the degree to which sanctions work. The U.S. has tried both the carrot and the stick approaches over the years.

Last year, pleased when North Korea finally produced an accounting of its plutonium production for nuclear weapons, President George W. Bush lifted trade penalties. That gesture didn't stop North Korea from pursuing its nuclear ambitions. Last month it conducted its second nuclear test.

On the other hand, penalties against South Africa are credited with helping to lead it to eliminate apartheid, a policy of racial segregation.

Several countries have been more than willing to do business with Iran. Those exporting more than $1 billion in goods to Iran last year included China, $8 billion; Germany, $5.7 billion; Italy, $3.2 billion; France, $2.6 billion; and Japan, $1.9 billion.

That compares with about $747 million in exports to Iran by Britain, $689 million by Belgium, about $685 million by Spain and $683 million by the U.S.

It can be difficult to stop even sensitive goods and technology from making their way to another country. It is common for Iran and other sanctioned countries to use transshipment points such as the United Arab Emirates to try to obtain U.S. goods undetected.