Expansion of Iran-US economic ties possible?

Iranian economic players should not expect major breakthroughs in bilateral ties between the US and Iran in the short term.

Pedram Soltani

Iran Chamber Deputy
13 May 2016
ID : 1032
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Ongoing discussions on establishing Iran-US joint chamber of commerce have not made any breakthroughs since no palpable steps have been taken to forge bilateral ties. Unilateral sanctions imposed by Washington have vitiated a pleasant economic ambience between the two states. Hence, discussions on establishing the chamber stem from the enthusiasm of individuals rather than officials.

The US has the largest economy in the world while Iran is the most populous country in the Middle East. Although the region is in a state of turmoil, Iran enjoys high stability and security. This has stolen the limelight from economic players in the world. The US economic players are also following regional developments and seeking to resume ties with the Islamic Republic. Not only the US but also Iran can benefit from mutual economic relations.

A large number of major international companies have established strong links with US firms. If Tehran and Washington develop economic ties, Iran can see major advances in its gas, oil and information technology sectors.

Likewise, the US can take advantage of boosting mutual ties by exporting commodities to Iran. However, political obstacles hinder the expansion of bilateral ties.

One of the obstacles is the mistrust between Tehran and Washington. Efforts to normalize relations have been hindered by more than 30 years of political estrangement. Unilateral sanctions imposed on Iran pose yet another obstacle. These penalties have also worked to the detriment of American companies.

Besides, the regional countries, particularly the Persian Gulf states spare no efforts to throw a monkey wrench into efforts made to patch up ties between Iran and the US.

On the whole, the Iranian economic players should not expect major breakthroughs in bilateral ties in the short period. Since close bonds exist between European and American companies, Iranians should adopt approaches to boost cooperation with European outlets to pave the way for improving ties with US players.

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