Winter Has Come On US-Iran Ties

Winter is historically an ominous time for relations between the world’s only remaining super power and the world’s biggest Shia republic. The remaining days of 2020 and the snowy months of early 2021 are turning out to be no different.

The assassination of Iran’s nuclear scientist Mohsen Fakhrizadeh on November 27, ensured that the chill winds blowing between Tehran and Washington will not abate. It has hindered the status quo ante in the Joint Comprehensive Plan of Action (JCPOA), better known as the Iran nuclear deal. Fakhrizadeh’s murder has set back a return by the United States to the nuclear deal even before President-elect Joe Biden has had time to seriously consider it.

The repeated winter chill in Iran-United States relations goes back to November 1952 when Dwight D Eisenhower was elected US President and British Prime Minister Winston Churchill persuaded the incoming US administration to collaborate in overthrowing Iran’s populist, anti-colonial Prime Minister Mohammad Mosaddegh.

That disastrous mistake led to a succession of events which culminated in the triumphant return from exile of Ayatollah Khomeini to Tehran in wintry February 1979 and the establishment of the Islamic Republic shortly thereafter. In the late winter of 1979, US diplomats in Tehran were seized as hostages and in the cold January of 1981, after a US election in which Islamic Iran was a central issue, Ronald Reagan was sworn in as the 40th US President. Iran released the hostages 20 minutes after Reagan’s inauguration.

There are many more winters’ tales about Iran and the US, but unlike William Shakespeare’s romantic comedy, none of them are either comic or romantic.

Tehran will be equally unforgiving with some European countries which joined Trump’s coalition of the willing to act against Iran in the last nearly three years. Greatly complicating any Biden effort to give new life to the nuclear deal will be an unknown in Iranian politics five months after Biden assumes office.

President Hassan Rouhani is term-limited and cannot run for re-election. Many names are speculated in Tehran as his successor, but if a hardliner is elected, the result will throw up more questions than answers about the future of Iran’s nuclear programme. That has the potential to be Biden’s biggest foreign policy challenge in his first year.

The other challenge Biden will face is a new arrangement against Tehran, which has emerged at Iran’s doorstep, even if it may be informal as a coalition for now: Israel, Saudi Arabia, the United Arab Emirates and Bahrain, with the potential of an expanded bloc. In any future US dealings with Iran, this is a formidable group of friends, whom no one in Washington can ignore — neither the White House nor the US Congress.

If the US political map, now split down the middle, throws up a fragile Biden presidency, West Asia may well see the tail wagging the dog.

Source:https://www.moneycontrol.com/news/opinion/foreign-affairs-winter-has-come-on-us-iran-ties-6190431.html

Mechanism Commensurate with INSTEX “to be Established Soon”

Scion Industrial Engineering

Governor of the Central Bank of Iran (CBI) Abdonnaser Hemmati said a mechanism commensurate with the European Union’s mechanism for trade with Iran, known as the Instrument in Support of Trade Exchanges (INSTEX), will be established in the country soon.

“In the talks that my colleagues had with representatives from the three European countries (Britain, France and Germany) and the president of INSTEX at the CBI (office) in Tehran last week, they gave a full explanation of the Iranian mechanism in line with the European mechanism,” Hemmati said late on Friday.

“We are waiting for practical measures from Europe,” the official said, adding that the Iranian mechanism known as STFI will be established in Tehran in the near future.

Earlier this week, the president of the INSTEX traveled to Tehran to hold talks with senior Iranian officials on ways to make the mechanism operational.

INSTEX is based in Paris and managed by the German banking expert Per Fischer.

The three European countries that are signatories to the 2015 Iran nuclear deal are reportedly going to use the channel initially only to sell food, medicine and medical devices in Iran.

In May 2018, the US president pulled his country out of the Joint Comprehensive Plan of Action (JCPOA), the nuclear deal that was achieved in Vienna in 2015 after years of negotiations among Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany).

Following the US withdrawal, Iran and the remaining parties launched talks to save the accord.

Source:http://www.iran-bn.com/2019/03/20/mechanism-commensurate-with-instex-to-be-established-soon/

Turkish-Iranian Trade Disappoints Big Time

Scion Industrial Engineering

By Mehmet Cetingulec for Al Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iran Business News.

Turkey and Iran have maintained cooperation in regional affairs in recent years, including most notably joint efforts for a settlement in Syria but also solidarity against US and Israeli policies in the Middle East. Earlier this month, Turkey’s interior minister even raised the prospect of a joint operation against Kurdish militants.

The political solidarity has been widely expected to strengthen bilateral trade, with a number of steps taken to that effect. In 2015, a preferential trade agreement between the two neighbors lowered tariffs on 125 industrial and 142 agricultural products. Two years later, a swap agreement took effect to allow the use of national currencies in bilateral trade.

When introducing the preferential trade agreement, the two countries had set a target to boost the volume of bilateral trade to $35 billion. Four years on, the result is a disappointment in full measure. In 2018, bilateral trade was worth $9.3 billion, the lowest level over the past nine years.

SOurce:http://www.iran-bn.com/2019/03/23/turkish-iranian-trade-disappoints-big-time/