Following the July 14 nuclear pact between Iran and P5+1, Iran and the UK are displaying a new willingness to patch torn relations.
This is quite evident from the recent visits by top British officials to Tehran including that of British Foreign Secretary Philip Hammond in August.
As a continuation of such visits, Lord Francis Maude of Horsham, the UK trade and investment minister, visited Iran during October 31-November 1, and held a number of meetings with Iranian trade officials.
In an exclusive interview with Iran Daily, Maude expounded on the objectives of his visit, future prospects of cooperation, areas of common interest for boosting collaboration, joint investments as well as Iranian and British trade potentials.
Excerpts from the interview follow:
IRAN DAILY: Your visit to Iran comes as trade between the Islamic Republic and Britain has remarkably declined in recent years. How do you see the prospects of cooperation in the wake of the nuclear deal?
LORD FRANCIS MAUDE OF HORSHAM: The two countries have a lot of areas of strong common interests. In the past, there were a great deal of severe difficulties in mutual relationship stemming from political differences; but, currently, both sides have reached a moment where they can move forward leaving all the problems behind. Britain can bring particular expertise to help improve some Iranian trade and industrial sectors enabling the country’s economy to reengage with the global economy.
What are the goals of your trip? Has a new horizon opened up? Are the two sides willing to restore ties as they were before the anti-Iran sanctions came into force?
A delegation of 12 businesses, particularly involved in improving infrastructure and providing oil, gas and financial services, are accompanying me on this visit. We are here particularly in response to the request made by the Iranian government during Hammond’s visit to Tehran. In the meetings with senior Iranian trade officials, we explored the scope of collaboration.
The nuclear accord has given both countries a prospect to make a historic break with the past and mark the beginning of a new era in mutual relationships by building an effective partnership. I know no better way of cementing that new age than building very strong economic and commercial links based on joint investments where both states can bring together capabilities and make two plus two add up to more than four.
Is the willingness for expanding cooperation a mutual one?
The UK has a huge interest in working in Iran as well as bringing investments, technologies, know-how, expertise and experiences to the country. Iranian business also has a massive opportunity to bring its entrepreneurial flair and huge capabilities to benefit the world outside. Trade is a two-way floor, so is cross-border investment.
Besides trade cooperation between the two states, the private sector in Iran is extremely keen on working with British companies. How do you evaluate cooperation between the two sides’ firms in the post-JCPOA era?
There is a huge potential in this area. As Iran’s economy opens up, the country’s oil and gas industry will obviously need to attract more investment and increase imports of modern technologies. The country enjoys enormous natural resources which can be a foundation stone for the modern economy. Iran has expressed a great desire to increase domestic production, particularly in oil and gas sector.
In addition, the Iranian government is keen on investments in domestic infrastructures. British companies have particular expertise in some of the services around infrastructure design and architecture, engineering and project management. They also have a great deal of experiences in delivering very big projects effectively and in a timely and cost-effective way and a number of them are quite willing to build partnerships in Iran.
Nevertheless, it is not going to be just a private sector partnership, because there is a strong British government involvement in big infrastructure projects wherever they are. My presence here is another illustration that the participation of these companies in the strengthening and enhancing of Iran’s infrastructure has the strong backing of the British government.
Is the UK also interested in attracting Iranian investments? In what fields?
The British economy is always looking for foreign investors and has recently been successful at encouraging investments into Britain. Apart from the US and China, there is more investment in Britain than any other country in the world. I would hope that Iranian companies seeking to grow their business and sell their goods and products into the wider European market, would see Britain as the natural location of choice, from which, to do their business into the broader time zone.
The UK tends not to be very prescriptive about what kind of investment it wants. The country is a very open economy. London is the biggest international financial center in the world and an optimal time zone.
Are visits by top British officials and delegations to Iran going to continue? Can they make any substantial contribution to the strengthening of mutual ties?
They will definitely continue and can make a big contribution. It is only through talks that two countries can understand each others’ needs and priorities.
Have talks between Iran and the UK led to any practical results? Are you optimistic about the future of cooperation?
What the two sides are doing at the moment is intensive preparation for the time when sanctions are lifted and serious business can commence. We are looking to see whether there are specific projects we can be working on in the meantime which would build our common future.
I am very much optimistic about the future. Both sides have rational leaders who see no benefit in violating the nuclear agreement. They have a very strong interest in implementing the agreement effectively and thus preparing the ground for the opening up of the Iranian economy and its full and speedy reintegration into the global economy.
How does the British government view cooperation with Iran in the field of industry? Does it have a vision in this regard?
This is not a one-way floor. This is all about partnership and bringing together technologies with opportunity. There is an enormous scope for building the Iranian economy and industry. On this visit, we particularly focused on oil and gas sector as well as establishing and improving Iranian infrastructures. But there are also other areas such as digital technology and information technology where Britain has a huge strength. Iran also has great strengths in these fields. We seek a collaboration that can strengthen both sides.
What about the cooperation negotiations in oil and gas sector?
There have been discussions and there will be more. Both Shell and British Petroleum have a long history in Iran and surely wish to renew that commitment. These companies have a very strong support from the British government in taking forward their involvement and engagement in the Iranian economy and projects. British companies, such as Petrofac, KCA Deutag and Wood, also have great strengths in the services around oil and gas industry and have developed very much cutting-edge technologies.
The competition in international markets has greatly intensified with lower oil prices and many governments avidly seeking to attract in investments. Nevertheless, there is no doubt at all that the opportunity for partnership in Iran is very great. Given that currently, the Iranian government, quite understandably, wants to increase domestic output, its main challenge is to find the right partners who can work with it here and, by making investments and doing the upgrades, help Iran build domestic production up at the earliest.
Britain viewed Iran as a consumer country before the sanctions; but now Tehran seeks its own share of exports in cooperation with any country. Are you ready to embark on business with Iran under a win-win situation?
Britain is very open to imports. Although the country has a positive trade balance in terms of services, in terms of goods, the country’s imports exceed its exports. In addition, there is a significant number of Iranian nationals residing in Britain and a great deal of affection for the country.
Do you think that Iran has the potentials to become a leading trade partner for Europe in the Middle East?
Rather than having a dominant trade partner in the Middle East and the Persian Gulf Area, Britain is interested in having a number of strong partnerships. There has always been a very strong British presence in the region and Dubai in particular. The number of businesses accompanying me on this visit and other delegations coming to Tehran is indicative of a growing British desire to expand presence in Iran’s market and establish businesses not just in Tehran but other provinces across Iran.