Iran launches tour in Spain to save nuclear deal

The Minister of Foreign Affairs, European Union and Cooperation, Arancha González Laya, received her Iranian counterpart, Mohammad Javad Zarif, on Thursday to hold political consultations between the two countries in a meeting in which they also reviewed bilateral relations, including economic relations. 

As reported by the Foreign Ministry in a statement, during the meeting the minister stressed "the importance of the talks taking place in Vienna on the return of the United States to the Joint Comprehensive Plan of Action (JCPoA) concluding successfully" and, in this regard, she asked Iran to make an effort.

He also conveyed that Spain, like the European Union, considers the agreement to be "a key instrument of the non-proliferation architecture" and has therefore urged Iran "to return to full and effective compliance with its nuclear obligations".

The Spanish Foreign Minister, Arancha González Laya, urged her Iranian counterpart, Mohamad Javad Zarif, to return to 'full and effective' compliance with his country's nuclear obligations, and also encouraged him to use his influence 'constructively' to promote political solutions and regional stability.

After the Spanish capital, Zarif will head to Brussels, where he will meet with his French, German and British counterparts: he will then have completed the tour of the five powers that, in addition to the United States, had signed the 2015 text with Iran. 

The Iranian minister was cautiously optimistic about the chances of salvaging this historic agreement, which provided for the lifting of sanctions affecting his country in exchange for a commitment not to acquire nuclear weapons. 

Since the US abandoned the Joint Comprehensive Plan of Action (JCPOA), tensions with Iran have only increased. That action, orchestrated by then President Donald Trump, was followed by a host of other actions - such as Iran's enrichment of uranium - that have led to a very complex situation in which they must now sit down to negotiate and come closer together to reach an agreement. So far, however, neither side has shown the slightest intention of giving in. Neither Iran respects the agreement signed in 2015, nor has the United States lifted the sanctions imposed. 

The role of the European Union seems essential in these negotiations as a mediating actor between the parties. The concern in Brussels to reach a new agreement and, above all, one that could have a significant future impact, is paramount. They consider a return to the JCPOA or, failing that, the creation of a new treaty to be a fundamental step towards global stability.

One of the reasons why Iran wants to accelerate these negotiations is the call for elections to be held in Tehran next June. Reaching an agreement before the elections are held would boost the current government's chances of re-election. Contacts are expected to continue over the next few days with a view to achieving the goal of re-establishing stability among the countries of the Joint Comprehensive Plan of Action, but also that of the whole world, which has been watching everything that has been happening in the Middle East over the last few days with a sidelong glance. 

Despite the different periods of sanctions imposed on Iran throughout history, Spanish companies have not ceased to operate in this country, with a significant presence. After the lifting of multilateral sanctions in 2016, trade flows between Spain and Iran recovered the traditional trend they had before the multilateral embargo against Iran, with a trade balance in deficit due to Spain's heavy imports of Iranian crude oil. The reimposition of US sanctions against Iran has once again affected the volume of bilateral trade. 

Iran's partial return to the world economy after the July 2015 nuclear deal created a remarkable condition for business insertion. The reasons for the development of economic relations with Iran can be justified by the resilience of its economy and producing companies in the face of crises. With a population of 84 million people with young human capital, it has made it possible to diversify its productive structure and move away from excessive dependence on oil revenues, according to The Diplomat. Iran's agricultural and manufacturing productions have compensated for part of the brutal decline in oil exports and have ensured the import of materials from Europe and Spain. Despite the obstacles, Iran's ongoing sectoral transition allows it to demand a variety of intermediate goods and new technologies.

In 2020, the value of Spanish exports to Iran amounted to 206 million euros (-9% compared to the previous year), while our purchases amounted to 64 million euros (-31% compared to 2019). As for the breakdown by exported products, presented by ICEX, the value of Spanish exports to Iran reached €40 million (+49% compared to the same period last year) and Spanish imports from this country stood at €15 million (-18% compared to the same period in 2020).

Relations between Iran and Spain are a function of relations between Iran and the EU and, therefore, despite ups and downs, have shown continuity over the years. There is no doubt that the lifting of sanctions by the US administration will leverage economic ties with Iran, but neither should it be forgotten that, in the meantime, the EU is trying to manoeuvre its own long-term strategies.