Iran and Europe Coming to
Concrete Terms

"The EU is already Iran’s biggest trading partner. The level of trade and economic exchanges between the two sides stood at €13 billion ($13.2 billion) in 2001. "

In a meeting with Norwegian ambassador to Tehran, Svein Aass, in the first day of the new year, former president and the present Chairman of Iran’s Expediency Council, Ali-Akbar Hashemi-Rafsanjani, referred to the growing role of Europe in Iran’s foreign policy and the special treatment it deserves in the eyes of the Iranian government. He attributed the priority given to Europe to its balanced approach and its more reasonable policy towards Iran as compared to that of the United States which he characterized as hostile in nature.

Secretary of Iran’s National Security Council, Hassan Rohani, described Europe’s demeanor towards Iran as friendly and positive, and called on the two parties to engage in “constructive cooperation” so as to take advantage of the conducive atmosphere now existent. He made the statement in a meeting with Dutch Foreign Ministry Secretary-General, Frank Majoor, on 16 December 2002.

“If 2001 was the year of EU-Iran rapprochement, the year 2002 will go down in history as the dawn of a new era in EU-Iranian ties,” says Iran’s ambassador to Brussels, Abolghassem Delfi. Iran’s relations with the EU, the European Parliament, Belgium and the Luxembourg witnessed a significant stride forward in 2002, and in fact, “it was a year full of activities in Europe-Iran ties.”

Both Iranian and European analysts describe the pace of events unfolding between the two blocs as the most important development to happen since the establishment of the Islamic Republic of Iran more than two decades ago. They argue that even though a dialogue between the two parties was launched in 1995, it is the first time that efforts are consciously made to structure bilateral relations within the framework of a contract to experience its tangible results. What is important is that the two sides are not after concrete results overnight and instead they have decided to go for a long-term and step-by-step development. The turning point in EU-Iran ties was set by Foreign Minister Kamal Kharrazi’s visit to Brussels in September 2001 followed with a second one later.

On 19 November 2001, the European Commission approved a proposal to begin negotiations on cooperation and trade agreement with Iran. On 17 June 2002, the EU’s Council of Ministers gave the commission a mandate to begin negotiations with Iran. Finally, the two sides held their first round of negotiations on a trade agreement along with a political dialogue in Brussels on 12 December 2002. They also launched a human rights dialogue shortly before the talks on trade agreement in Tehran with the participation of NGOs. Discussed in addition to the human rights issue were weapons of mass destruction, cooperation in the fight against terrorism and the Middle East crisis. According to French ambassador to Tehran, Francois Nicoullaud, “both meetings were positive and may be regarded as historic summits.”

As a follow-up, Iran has invited the EU for a second round of talks in Tehran in the coming spring to coincide with the Iranian New Year that begins on 21 March 2003. By then the outcome of the anticipated US-led invasion of Iraq will be out, leaving both parties’ hands free to bargain if needed.   

What gave added importance to these developments was the complete absence of any preconditions on the part of Europe for cooperation with Iran, says Delfi.

 The absence of precondition is mutually beneficial since it leaves space for expedient maneuvers when need be. “No preconditions” makes sure the sensitive issue of the Iranian government’s ego is not undermined while it leaves Europe free to decide what is good for it and act accordingly.

 “The EU wants the critical dialogue with Iran to produce results. There is no precondition, which means we can do what we wish,” says Danish Foreign Minister Per Stig Moeller.

The EU and Iran signed an agreement in October to open an office in Tehran for oil, gas and general energy cooperation (Iran International, Nov. 2002, page91). Having set up the office, the European Commission is examining the idea of extending a gas pipeline from Iran to Europe through Turkey – made operational in early 2002. In the light of the abundance of natural gas in Iran and its interest in exporting it, if Europe decides to begin importing the gas, the move will amount to a groundbreaking event in the ties between the two sides.

The two blocs are already important partners in the oil sector since Europe imports around 8% of its oil needs from Iran. Since 1996, the United States has blocked its oil firms from investing in Iran. Europe in contrast, has allowed its companies to go on doing business there and grow their stakes in the vital Iranian energy sector. The EU is of the opinion that closer trade and economic ties will contribute to Iran’s economic and political reforms and will strengthen the hands of so-called moderates.

The EU is already Iran’s biggest trading partner. The level of trade and economic exchanges between the two sides stood at €13 billion ($13.2 billion) in 2001. Exporters from EU, which ran a trade deficit of €111 million ($113 million) last year, are looking forward to boost their exports of machinery and chemical products to Iran.   

There are indications and reasons to believe that 2003 will witness great strides in the normalization of ties between Iran and the EU.

And now the most important developments to happen in Europe in the course of 2003 as predicted by The Economist (September 2002).