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Critical or Constructive
Dialogue? |
The visit to
Iran by the European Union (EU) Commissioner for External
Relations Chris Patten marks a new era in Iran-EU relations. The three-day
visit covered many different aspects of the blossoming ties between
Iran and
Europe. Trade relations occupied a special place in the talks
spanning the balance of trade, industry, energy and changes in Iranian
corporate law to facilitate the much anticipated European investment as well
as greater Iranian business and political participation in global affairs.
Patten, a historian with a masters degree
from Balliol College Oxford, even found time to visit
Isfahan letting the visit take on a cultural aspect missing from the
equation in earlier visits by EU officials to
Iran.
The EU decision not to set any preconditions
for trade and cooperation talks resulted in a much more relaxed atmosphere all
through Chris Patten’s stay and provided a more solid basis for negotiations
on the future of trade links between the two sides.
Patten kicked off his visit by meeting the
Iranian Minister of Foreign Affairs, Kamal Kharrazi, upon arrival to discuss a
whole host of issues including the Iraqi crisis.
But Patten reiterated, "My priority in
Tehran is to follow up the second round of trade and economic
cooperation between
Iran and the EU.”
“I will also hold discussions with Iranian
officials on terrorism, human rights and specially the regional situation and
the Iraqi crisis,” he added.
The EU has only recently shifted its
relationship with
Iran from a “critical” to “constructive” dialogue. The change of
heart by the EU is in sharp contrast to the current
U.S. rhetoric against
Iran. But
Europe has realized that more can be gained from cautious
engagement and trade than pointless propaganda.
Iranian economic policy has had to change
quickly in recent years to keep up with the lightning changes taking place in
business firms overseas. The very survival of a large number of highly
qualified but unemployed youth in
Iran may indeed depend on the outcome of these latest rounds of
talks and business wrangling between the EU and
Iran. Patten said that he was encouraged by several positive
measures taken by the Iranian government, notably the unification of the
exchange rate, the reduction of corporate taxes and the adoption of a new
investment law.
Iranian perceptions have evolved to take in
the many different facets of international trade that have been viewed with
suspicion in the past. For instance the energy sector in
Iran treats as routine concessions awarded to foreign oil
companies especially if they trade-in their technological know-how for a share
in Iranian reserves. The attitude is beginning to permeate and in some cases
prevail throughout the economic and industrial community in
Iran.
Patten did point out, however, that
Iran's high trade barriers and tariffs meant a longer distance
would have to be traversed until a Terre firma on trade and cooperation is
reached.
Another area of concern for
Iran is entry as a full member into the World Trade Organization
(WTO) and the EU commissioner made it quite clear that the EU supports such an
outcome in principle. Entry into the WTO will free up Iranian businesses to
undertake greater non-oil exports to remedy the trade balance woes of recent
years. The balance of trade with the EU is healthy mainly due to Iranian
energy exports, but should they become absent from the dealings Iranian
weaknesses will become embarrassingly apparent. For example, official
UK exports to
Iran in 2001 amounted to
£430
million, but the Iranian exports to
Britain did not exceed
£29
million. If we take into account unofficial
UK exports, the total figure for
UK exports would be closer to
£1
billion. The poor balance of trade between
Iran and the
UK compared with other members of the EU is a good indicator of
where Iranian energy exports are not present to establish equilibrium.
Chris Patten’s next stop was a meeting with
President Khatami where regional political issues took pride of place.
President Khatami complained of double standards over
Iraq. He asked how was it that
Iraq had to abide by UN resolutions while
Israel could flout the UN resolution passed against it. At the same
time expressing
Iran’s opposition to war on
Iraq, despite damage inflicted by
Iraq on
Iran during the Iraqi-imposed Persian Gulf War of 1980-1988.
Khatami said he appreciated the EU opposition to unilateral action against
Baghdad. Patten assured the Iranian President that should
Iraq fully implement the 1441 resolution it would avoid further
complications.
The EU commissioner in charge of external
relations ended his visit by a speech at the Institute for Political and
International Studies (IPIS) of the Iranian foreign ministry. He said his time
in
Iran had wetted his appetite for further visits and that
Iran, as a regional power should play a more active role in
global affairs. He promised a more constructive role by the EU in the fight
against drugs, a burden that
Iran has had to shoulder for many years without assistance.
Patten said the EU would not set any
preconditions for future trade with
Iran although he deftly connected reforms with further expansion
of ties.
His visit on the whole
left a positive impact setting the political stage for future cooperation
between the two sides;
Iran can look forward to a brighter future
ending its 24 years of near isolation and greater integration in the world
community. |
