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EU Delegation Visiting Iran
Domestic Economy

EU Delegation Visiting Iran

A high-level European delegation, led by High Representative of EU for Foreign Affairs and Security Policy Federica Mogherini, is visiting Iran on April 16 to explore sectors of cooperation with Iran.
The two-day visit builds on the Joint Comprehensive Plan of Action agreed in Vienna in July 2015, which laid out the prospect of expanding EU-Iran bilateral relations, the European Commission reported on its website.
The delegation includes EU Commissioners Elzbieta Bienkowska, in charge of Internal Market and Industry, Violeta Bulc, for Transport, Miguel Arias Canete, in charge of Climate Action and Energy, Carlos Moedas, for Research, Science and Innovation, Tibor Navracsics, in charge of Education, Culture, Youth and Sport, Christos Styliandes, for Humanitarian Aid and Crisis management and Karmenu Vella, in charge of Environment, Maritime Affairs and Fisheries.
Relations between the EU and Iran have been through different stages and over the last decade, conditioned by the international dispute over Iran's nuclear program and the consequent sanctions regime that was put in place.
The nuclear agreement is aimed at ensuring the exclusively peaceful nature of Iran’s nuclear program while providing for the comprehensive lifting of all UN Security Council sanctions as well as EU and US sanctions related to Iran's nuclear program.
The Foreign Affairs Council of July 20, 2015, endorsed the JCPOA and also expressed the expectation that this “positive development will open the door to a steady improvement in relations between the European Union, its member states and Iran, as well as improved Iranian regional and international relations.”
On 16 January 2016, the EU lifted all nuclear-related economic and financial sanctions against Iran. This followed verification by the International Atomic Energy Agency that Iran had implemented the agreed nuclear-related measures as set out in the JCPOA.
The conclusion and implementation of the JCPOA has opened the way for a renewal of broader relations.
Following the High-Level Dialogue held on February 8-9, 2016, at vice minister/political director level, where future areas of cooperation between the EU and Iran were identified and a joint exploratory mission on energy, research and innovation related issues on 16-17 February, Mogherini will now visit Iran with seven commissioners with the objective of laying the basis for future cooperation covering a wide variety of sectors and issues.
This visit will also allow for greater exchanges on global and regional issues of mutual interest, in particular how to contribute to a more stable and secure region.
Under the JCPOA, a Joint Commission was established consisting of all members of the P5+1 (the five permanent UN Security Council members, plus Germany) and Iran.
The EU high representative will coordinate the work of the Joint Commission which will oversee the implementation of the agreement.

- Policy Areas:

➢ Economy & Trade

In terms of trade and investment, reengagement with Iran will create opportunities on both sides. While in 2004, the EU exports to Iran were reaching the level of almost €12 billion, they dropped by 46% to less than €6.5 billion in 2014 due to the sanctions. Recognizing the importance of the global trading system, the EU is particularly supportive of Iran's willingness to join WTO.

➢ Energy

With the objective of a full implementation of JCPOA, including its Annex III on nuclear cooperation, the EU will aim to develop durable relations with Iran in the nuclear field. The initial focus will be on nuclear safety matters aimed at strengthening the regulatory and legislative framework.
Cooperation on wider energy issues could aim to improve the business and investment climate and explore the potential of Iran for Europe's energy security given its large gas and oil reserves. It could also comprise an increased use of clean energy and efficient energy demand management, and encouraging transparent, rule-based and well-functioning regional and global energy markets.

➢ Environment

Iran faces many environmental challenges, with water scarcity, land degradation and air pollution being the more prevalent. An effective response to these challenges requires both regional and multilateral cooperation. The EU will engage with Iran to enhance the protection of the environment.

➢ Business Cooperation

Potential areas of cooperation range from industry and services sectors, as well as policy for promoting small- and medium-sized enterprises and business environment. This could facilitate the development of Iranian companies and the creation of jobs and at the same time support European companies wishing to do business in Iran. Concrete ways of cooperation will be examined in other sectors, such as construction/infrastructures, SME development, tourism and creative industries.

➢ Agriculture

The EU and Iran are important agricultural producers. There is potential to strengthen bilateral links in the interests of both by promoting each other's food products in the respective markets and enhancing agri-business investment. As partners, they shall also promote cooperation on agricultural policies and sharing sector know-how.

➢ Transport

An efficient, safe and secure transport system is key to facilitate trade, investment and connectivity. Regulatory issues and aviation safety will be two priorities. Further cooperation activities in the fields of rail, maritime, road and urban transport also offer potential for future cooperation.

➢ Education and Culture

Iran is taking part in Erasmus+ for the Middle East (between 2007-13, 323 scholarships were awarded and 10 Iranian academic institutions took part) with an overall amount of these ongoing activities estimated at €10 million. Cooperation in the field of higher education can be stepped up. The EU and Iran have remarkably rich cultures and can greatly benefit from exchanges and cooperation in the cultural field.

➢ Research and Innovation

Science, research and innovation are particularly promising areas of cooperation under the framework of the Horizon 2020, which is open to participation from Iranian public and private entities. Collaboration in the areas of renewable energy, climate change and bio-economy are also possibilities.
Horizon 2020 is the biggest EU research and innovation program ever, with nearly €80 billion of funding available over seven years (2014 to 2020), in addition to the private investment that this money will attract. It promises more breakthroughs, discoveries and world-firsts by taking great ideas from the lab to the market.

➢ Int'l Cooperation and Development

As an upper middle income country, the bulk of development cooperation with Iran is implemented through thematic programs.
Iran is involved in the "Support to the Silk Routes Partnership for Migration under the Budapest Process" (which improves basic structures in migration management).
The country also benefits from activities under the Climate Technology Centre and Network initiative. The European Commission has just adopted a new project valued at €5 million in the area of nuclear safety cooperation, which is in line with the provisions of JCPOA that foresees civil nuclear cooperation in specific technical areas. The project will support the regulatory authority of Iran in reviewing the regulatory framework and building technical capacity by transfer foreign expertise, support regional outreach and establish a nuclear safety center in Iran.

➢ Humanitarian Aid

After decades of protracted displacement of Afghans, Iran is hosting an estimated 980,000 documented refugees and asylum seekers (UNHCR, June 2015) and between 1.5 and 2 million undocumented ones. The European Commission has been continuously providing humanitarian aid to refugees and asylum seekers in Iran. Between 2002 and 2015, the European Commission allocated €10.5 million to Afghan refugee programs in Iran and this assistance will increase in future.

➢ Regional Issues

Iran has an important regional role. The EU will engage to encourage tangible and constructive steps that would help make an improved regional situation a reality, including by helping find solutions to regional challenges.

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