Monday, December 09, 2013

Obstacles to an Agreement with Iran

In order to understand the political dynamics surrounding the recently signed EU + 3/Iran nuclear agreement, it is important to understand some of the history. The U.S, sanctions regime against Iran began in 1979 shortly after the Iranian Revolution and the subsequent hostage crisis. The initial sanctions were imposed by President Jimmy Carter who froze millions of dollars of Iranian assets in U.S. banks. In the 1980’s, the sanctions were expanded to include weapons and any financial aid to Iran, as the U.S. attempted to aid Saddam Hussein during the Iran-Iraq war. The sanctions regime was expanded in 1987 under President Ronald Reagan and again in 1997 under President Bill Clinton. President Obama has magnified the impact of the sanctions by threatening and coercing governments around the world, wishing to do business in the U.S., to abide by the unilateral American sanctions. These sanctions have had an increasingly negative impact on the Iranian economy and on the lives of ordinary Iranians. Circumventing and mitigating the effects of the sanctions has been a major focus of almost all Iranian governments.
The Iranian nuclear program dates back to 1957 when the U.S. signed a nuclear cooperation agreement with Shah Mohammed Reza Pahlavi’s government under the Atoms for Peace Program. Following the revolution, the Siemens AG contract to build the Bushehr nuclear reactor was terminated. Shortly thereafter the Iranian government announced an ambitious program to construct its own reactor and to master the nuclear fuel cycle. In my opinion, while the nuclear program has been expanded to provide nuclear power and medical isotopes, its primary purpose has been to accumulate bargaining chips in order get the sanctions removed and reduced and to get Iran reintegrated into the international community. As the West has rebuffed all Iranian efforts at reintegration, the chips have continued to accumulate. It is not a nuclear weapon that concerns the U.S. and its allies, Israel and Saudi Arabia, but the reintegration of Iran into the global economy.
Iran is strategically located astride the Straits of Hormuz and is a buffer state between the Middle East and Central Asia. With its large (70mm), well-educated young population, relatively stable governance, and substantial potential for oil and gas production, Iran is much better positioned than its neighbors to project political and economic power, both within the region and globally. It is this potential to change the status quo in the region that most worries Iran’s adversaries. The nuclear weapons issue is a politically powerful red herring to cover the true concerns.
During the Geneva talks, Israel and Saudi Arabia spent much money, printers ink and bombast to prevent the interim agreement from being signed. Having failed in that effort, they are now rolling out the political big guns in Washington in order shoot down any final comprehensive deal that will result in rapprochement with Iran. Already the Obama administration is showing signs of backing away from any final status agreement. (See here and here.) While it is in America’s interest to resolve the conflict with Iran diplomatically, it is unclear to me whether or not Obama, who sees every foreign policy issue through a lens of domestic politics, will be able to summon the political will to deliver on the promise of the Geneva agreement.


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