Economy, Domestic Economy

JCPOA Economically Beneficial

Mousa GhaninejadMousa Ghaninejad

Opponents of the nuclear deal, formally known as Joint Comprehensive Plan of Action, often claim that it has not borne any economic fruit for Iran. Nevertheless, the contract signed with Boeing to purchase 80 aircrafts, unveils layers of economic rationality embedded in JCPOA, says eminent economist, Mousa Ghaninejad, in a Persian opinion piece published on the website of Tehran Chamber of Commerce, Industries, Mines and Agriculture. The write-up is translated as follows:  

The ones opposing the nuclear deal are of the opinion that Iran’s economic conditions in the post-sanctions era have not changed as compared with those before the sanctions were lifted and speak of the difficulties in international banking interactions as proof.

Yet, many changes in our economic ties with the world bear witness to prove the contrary.

For one thing, Iran’s oil exports have experienced an upsurge compared with the sanctions era and the country is winning back its lost share in the global markets.

Moreover, extra expenses in imports and exports to circumvent the financial and banking sanctions are a thing of the past. Therefore, our foreign trade has thrived ever since the nuclear deal was reached.

Moreover, the nuclear deal has restored stability to our domestic macro-economic variables. The business and investment environments have also considerably improved.

True, we have major issues, including the persisting and gratuitous interference of the government in the economy, but these have nothing to do with the JCPOA and had it not been for this deal, these problems would have exacerbated.

The reality is that, for some reasons, the world’s major banks are still reluctant to engage in Iran’s international financial interactions and this has impacted our major deals and foreign investments.

But I believe if we make the best of the opportunities provided by the nuclear agreement, these hampering factors can be puzzled out.

Big oil companies such as Total and Shell are fully aware of the stumbling blocks in the way of financial interactions with Iran and yet, they have signed memoranda of understanding with Iranian companies and are keen to invest in our country.

Under our present circumstances, the deal with Boeing, the largest US-based plane manufacturer, can be considered a huge success through which we can regain the trust of the global market and pave the way for other major deals. An example of this is Boeing’s all-time rival Airbus stepping up efforts to finalize its own contract with Iran.

Unfortunately, some critics of the government denounce the wise steps taken to snap up the opportunities provided by JCPOA for the sole purpose of partisan interests.

It is possible for the Boeing deal to face complications or even be annulled when US president-elect Donald Trump takes office, but this would be costly for the new US government, for it is an indication of Trump going back on his own word of creating more jobs in the United States.

Furthermore, if anything unpropitious happens to the deal, Iran’s righteous approach in wanting peaceful trade with the world and at the same time the unreasonable and unjust approach towards Iran by the US government will be substantiated before the international community.

 It will prove that, despite claims, it is Iran that is prepared to put trade ahead of politics and embark on amicable economic ties even with adversaries.

Whether it bears fruit or not, the Boeing deal will benefit Iran and this shows tactfulness and shrewdness on the part of Iranian officials.

Detractors of JCPOA and the measures taken after it also question the fact that the Boeing deal could create tens of thousands of jobs in the US, which they perceive as Iran’s enemy.

These critics are not familiar with the concept of free trade and don’t know that agreements such as these are win-win deals.

Speaking about the Boeing deal specifically, it is worth mentioning that Iran is purchasing something that it essentially needs and the domestic production of which is not at all possible at present.

Secondly, Iran is not directly investing in the manufacturing of these planes and is not in possession of such financial resources to begin with.

Basically, Iran will pay for the purchased aircrafts through the revenues gained by those very aircrafts once they join the domestic transportation infrastructure.

Last but not least, the fact that tens of thousands of jobs will be created in the US can help restore the utterly distorted and unreal image of our country in the eyes of the US public.

In view of the above, how can opposition to taking advantage of the opportunities arising from JCPOA serve national interests?

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