Brussels, 20/11/2001 (Agence Europe) - As previously announced (EUROPE 17 November page 5), the European Commission has approved a proposal for negotiating a Trade and Co-operation Agreement with Iran. A Commission press release stressed that following the events of 11 September, Iran could play an important role in the global fight against terrorism and establishing regional stability. Previous arrangements between the EU and Iran have not included any contractual basis to relations between the two sides but the press release points out that this is about to change, which demonstrates the eagerness to put relations on a strengthened footing. The press release also points to the fact that in its Communication on Iran to the Commission, the Council pushed for a similar mandate for negotiations in its conclusions of 14 May. These conclusions emphasised that the agreement would contribute to further economic liberalisation in Iran and strengthen co-operation in areas of mutual interest - the fight against drugs and refugee and environmental issues. The agreement would also facilitate greater regional co-operation. The press release indicates that trade between the two parties is still limited in volume but has "enormous potential in view of the country's rich endowments of petroleum, natural gas and minerals"… as well as its potential in the fields of agriculture and industry.
EU-Iran dialogue was launched in 1995 and expanded further, following the election of President Khatami and his reform-oriented government. The Commission is aware that the pace of reform is slow but believes that the setting up of contractual relations will allow the EU to push this process forward. In parallel, political dialogue will continue to address issues such as the Middle East peace process, weapons of mass destruction, non-proliferation and human rights.