Iran - Canada Reciprocal Benefits
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| Prime
Minister Jean Chretien |
Canada refers to the
commercial, political, social and economic relationship with Iran as a package. However,
there is this mutual agreement that the trading relationship between the two countries is
very important. If there are Canadian companies doing business in different Iranian
sectors, particularly oil, gas and mining, then the Canadian Government works hard in
supporting the commercial interest of Canada’s private sector.
Although some 80% of the business activity here is done on the government side, but the
Iranian government is to give the private sector more room for trade. With the reform
agenda in the Third Five-Year Plan, there are a number of issues such as privatization,
commercial interaction with the rest of the world and establishment of the private banking
system in progress. All these changes go well with an enhanced private sector.
On the other hand, it really doesn’t give the Canadian business community a
difficulty to deal with government authorities who are in charge of procurement. The
status quo in Iran is not very different from some other countries in the world where the
government plays a predominant role. Canada has been able to have very successful trading
activities with these countries. It is probably easier for private sector to deal with
private sector, but that is not always the case.
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| Measures are being taken to inform
Canada’s economic and industrial community further about the potentials that Iran has
to offer |
Measures are being taken to
inform Canada’s economic and industrial community further about the potentials that
Iran has to offer. Taking into account the Canadian expertise, oil and gas are very
important sectors where cooperation can take place. The accessibility and availability of
oil and gas is one of Iran’s biggest advantages.
On the other side, it is believed that Iran’s mining sector offers the largest
potential for the Canadian long-term interest. It is an area where Canada operates best.
On the other side, Iran is very anxious to have the mining sector open to create jobs and
diversify exports.
Some Canadians see more jobs and more long-term benefits in Iran’s mining industry
than in the oil and gas. There is much more infrastructure and larger transfer of
expertise that will go into place in the mining industry. Furthermore, such facilities
will go to those parts of the country where people really need jobs. All these create an
exceptionally good fit between the capabilities of Canadian companies, particularly those
operating on copper and zinc, and the requirements of the Islamic Republic of Iran. Only
in the mining sector, Canadian companies each year invest more than a billion dollars
overseas. A few large Canadian companies are actively looking at Iran’s mining
projects either in exploration or development of mines.
In addition to Iranian oil, Canada also buys Iranian carpets, dried fruit and caviar, and
experts see a lot of potential for cooperation in the agriculture sector, be it through
dry farming, artificial insemination, etc.
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| Terence
W. Colfer, Canadian Ambassador to Iran |
But attraction of Canadian
investment towards Iran is associated with certain issues. Canadians are sitting next to
the world’s leading economy. The value of Canada-U.S. trade now stands at $1.5
billion per day. It is the largest trading relationship on the planet. For all Canadian
ambassadors, except the one serving in the United States, this extraordinary trading
relationship has turned into a big challenge as how to attract the Canadian businessmen
and investors towards other parts of the world.
Iran’s image problem is another issue in addition to the strong U.S. market
attraction. Canadian investors and businessmen are overwhelmed with the hospitality of
Iranians and the existing opportunities once they visit Iran. It is almost completely
contrary to the image that some of the media reflect from Iran. The increase in political
visits and trade missions between Iran and other countries is helping to give the true
picture of Iran as a warm and inviting country.
Canadian companies would like a few issues to be addressed before they bring their capital
to Iran. They would like to see a foreign investment policy which is transparent, follows
the rule of law, gives confidence to foreign investors over capital repatriation and a
solid financial framework, clarifies the tax structure, facilitates immigration for people
moving in and out of the country and provides smooth customs procedures.
Immigration is another subject that links Iranians and Canadians together. Currently there
are some 250,000 Iranians living in Canada most of whom enjoy high caliber. It is
interesting that in most trade missions to Iran there is a new Canadian citizen of Iranian
origin. They play a very valuable role because they understand the language, the culture
and the values of both countries sitting around the table. Iranians in Canada are also
helpful in improving the image of Iran to as positive as it should be. |
