Iran-Germany Economic Commission Opens New Chapter in Relations: German Minister

April 11, 2001 - 0:0
TEHRAN German Economics Minister Werner Mueller on Monday said that Tehran-Berlin Joint Economic Commission has initiated a new chapter in Iran-Germany bilateral relations.

Addressing the first meeting in 10 years of a joint German-Iranian economic commission, Mueller said that economic entities in Germany are lobbying to have close cooperation with Iran.

"Traditionally, Germany is the most significant exporter of goods to the Islamic Republic and the main purchaser of Iran's non-oil products," he said.

Mueller noted that Tehran-Berlin economic relations are treading a downward trend.

"In 1999, the volume of trade exchanges between Iran and Germany hit its lowest to 3.1 billion marks from a record 9 billion marks in 1992," he said.

Mueller noted that the two countries should clear the way for further expansion of economic and political relations to obtain a sustainable development in trade and investment.

He said that Iran is an important country in the Middle East region and that it shoulders a heavy burden in bringing stability to the region.

He said the convening of the commission in Berlin after a 10-year break, the fruit of talks between Chancellor Gerhard Schroeder and Iranian President Mohammad Khatami during Khatami's landmark visit to Germany last July, was a "great political success for both sides".

The two governments must create favorable political and economic conditions in order to have durable trade and investment which both sides wanted, Mueller said.

Representing the Iranian government at the meeting was Mueller's counterpart Hossein Namazi, who earlier Monday also met with German Finance Minister Hans Eichel.

Namazi said that Iran and Germany are set to sign new agreements encouraging mutual investment.

"Undoubtedly, it is the duty of the commission to evaluate the current status quo in bilateral economic relations, identify the problems and shortcomings and find scientific ways to remove them," Namazi said.

The minister added that although the Federal Republic of Germany was Iran's number one trading partner, the framework should be set for a more balanced trade.

Namazi pointed out that one memorandum of understanding which is to be signed at this joint session, is aimed at encouraging and protecting investments and is an "effective step to motivate German and Iranian investors".

He also urged closer German-Iranian cooperation in international economic organizations such as the World Bank, the International Monetary Fund and the Organization of Economic Cooperation and Development (OECD).

German government officials said there were now moves by some factions in Iran to limit the 25-year-old chamber's freedom.

There are 113 bilateral German chambers of industry and commerce around the world. The institution plays a major role in trade and business contacts.

The two-day meeting between Mueller and the Iranian delegation concludes Tuesday with a news briefing.

Relations between Iran and Germany have zigzagged in recent years.

Although they showed an upturn with Khatami's visit last year, Chancellor Schroeder has indicated that he is waiting for the right political conditions in Tehran before making a return visit.

In the meantime, Mueller announced that Germany is to reach its record trade volume of 9 billion DM with Iran dating back to 1992.

"It is our goal to reach once again the trade volume of 1992 which was 9 billion DM," said Mueller, also pointing out that German-Iranian trade volume hit its lowest point of 3.1 billion DM in 1999.

Mueller stressed that a 35 percent increase in goods exchanges and the trends in the early months of the current Christian calendar year, show that "things look upbeat".

The minister said also that based upon "the positive experience", Germany would be willing to expand the Hermes insurance coverage ceiling for Iran.

Also, three memorandum of understandings were signed between the two sides.