IRAN COLD-SHOULDERED BY EUROPEAN UNION
BRUSSELS 13 May. (IPS)
The Islamic Republic of Iran was cold-shouldered Monday by the European
Union after it decided to postpone opening negotiations with Tehran on closer
economic and political ties.
The EU foreign ministers had been expected to give the European Commission the green light to work out a trade and co-operation agreement with Iran, which it sees as a way of boosting pro-reform forces grouped around President Mohammad Khatami.
But diplomats said the 15 member states had disagreed about whether to go for a narrow trade accord excluding provisions on human rights, political dialogue and fighting terrorism, or a broader agreement that might take longer to negotiate.
"The
decision has been put off until June", an EU diplomat told journalists.
“The decision (to postpone the Trade Agreement) is a severe setback for the Islamic Republic and would certainly have backlashes on relations between Tehran and the EU”, an Iranian economist told Iran Press Service, adding that it might serve the cause of the reformists.
“Foreign Ministers of the 15 members organisation discussed in their meeting in Brussels Monday development of EU-Iran relations, including the launching of negotiations on an agreement with Iran, but they could not reach a consensus”, the source added.
The
signing of Economic and Trade Agreement with the Islamic Republic meets several
obstacles, chief among them the inclusion of Tehran by President George
W. Bush among the states
that, with North Korea and Iraq, forms the "axis
of evil".
The characterisation was criticised by a number of European leaders, and European officials argue that a strategy of continued engagement with Iran is more likely to strengthen reformist elements in Iran.
“Not wanting, or not able to reduce tensions with the United States, the Islamic Republic attaches great importance to its relations with the European Union and considers the signing of the Trade Pact as an important strategic bargaining position against Washington”, commented Dr. Fereydoon Khavand, a Pris-based economist.
The pro-government newspaper “Iran”, published by the official news agency IRNA had talked about “new promising horizons” in Iran-EU’s economic and political ties while the reformist daily “No Rooz”, in an editorial published Sunday, said “if signed, the trade and economic agreement would represent remarkable victory” for the diplomacy of the Islamic Republic.
The ruling conservatives new wave of crack down on the press and political dissidents is another major obstacle that the European foreign ministers could not ignore, analysts said, pointing out that the EU’s decision comes at a time that the process of reforms is almost dead and rumours abounds about the President and reformist lawmakers wondering resignation.
Once
concluded, the agreement could radically boost trade and encourage European
investments in Iran as well as facilitating Iran’s return in the international
community.
With
imports from Iran totalling 8 billions Euro (USD 7.8) and exports to Iran
amounting to 5.2 billions Euro in 2000, with oil counting more than 80 per cent
of EU imports, the EU is Iran's main trading partner.
These figures exclude recent lucrative deals between big European oil companies and the Iranian authorities, such as Shell, TotalFinaElf and Eni, which have ignored the Iran-Libya Sanctions Act under which the US seeks to bar foreign companies from making significant financial commitments in Iran.
Cristina Gallach, spokesperson for EU foreign policy chief Javier Solana, told journalists that today's Council meeting could not decide on the form of the agreement that the EU would sign with the Islamic Republic.
“There is a consensus in the EU that an agreement with Iran should be signed, but there is a difference among the member states on the form of the agreement”, she was quoted by IRNA as having clarified.
Germany, Britain, the Netherlands and France have insisted that talks on a trade pact be linked to Iran meeting certain conditions, including respect of human rights, judicial reform, more freedoms and rejecting terrorism.
Italy, Spain and Greece, on the other hand, wanted to play down the conditions clauses, saying they EU’s relations with the Islamic Republic must concentrate on trade and economy, leaving aside political considerations.
The issue will now be discussed by the permanent EU Ambassador's to Brussels, before a final decision is taken by the EU foreign ministers next June.
The European Commission last
December approved a Directive on a Co-operation and Trade Agreement with Iran.
Talks between the two sides will begin after the Council gives its approval.
ENDS EU IRAN TRADE 13502