From Agreement to Trade: Key Prerequisites

Hossein Salavarzi

Even if a possible agreement is reached between Iran and the United States, assuming no destructive interventions by hardliners, it seems that the necessary conditions and infrastructure for establishing stable economic relations are not very good due to structural, political, and legal obstacles.

Decades of severing diplomatic relations, multi-layered sanctions, and a lack of mutual trust have made the bilateral economic ecosystem fragile.

Iran's blacklisting of the Financial Action Task Force (FATF), the isolation of the banking system from international financial systems such as SWIFT, and the lack of coherent legal frameworks to protect foreign investment pose serious barriers to attracting U.S. investors.

In addition, a volatile business environment, complex bureaucracy, corruption and lack of transparency, instability in economic policymaking, and political risks stemming from regional tensions have reduced Iran's attractiveness as an investment destination.

In such a situation, the creation of economic infrastructure requires targeted, gradual, and coordinated actions.

First, it is necessary to facilitate the movement of investors by simplifying the visa process and providing legal guarantees to protect their capital. 
This requires amending domestic laws, drafting bilateral investment agreements, and complying with international standards such as the United Nations conventions on investment.

Second, the opening of commercial representative offices in Tehran can serve as a focal point for identifying economic opportunities, transferring technology, and coordinating joint projects. This would require bilateral agreements to establish legal, tax, and customs frameworks.

Third, the creation of new financial channels, such as special payment mechanisms or cooperation with intermediary financial institutions in third countries, is vital to overcome current banking restrictions.
These channels must be aligned with FATF standards to gain the trust of foreign parties.

Fourth, the establishment of consular relations can reduce political risks and facilitate business interactions. 
In the long term, the reopening of embassies will strengthen mutual trust, though given the political sensitivities, this step will require careful management and appropriate timing.

Finally, stability in economic policy-making, increased transparency in laws, effective fight against corruption, and the formation of a joint working group to monitor the implementation of these prerequisites provide an essential platform for the operationalization of economic relations. Without these measures, even political agreements cannot lead to sustainable and effective economic cooperation.