By Ali Kushki, Negar Asadi

‘Renewed dynamism’ between Iran, Italy to revive good old days: ambassador

October 16, 2016 - 20:36

TEHRAN – Strained for years by the West’s nuclear-related sanctions on Iran, now all-encompassing relations between Tehran and Rome are beginning to resemble good old days with the nuclear deal providing the impetus, Italian Ambassador to Tehran Mauro Conciatori told the Tehran Times.

Still, the way forward is to press ahead with dialogue so as to lay the groundwork for ties to flourish, he added.

In what follows, a transcript of the interview has been given.

Q: What is your current assessment of the relations between Iran and Italy and how different the ties are from the pre-JCPOA era?

A: I have the privilege to serve as an Italian Ambassador in Tehran in an extraordinary moment. At the recent UN General Assembly, President Hassan Rouhani and Prime Minister Matteo Renzi met for the fourth time in one year.

At the beginning of my mission, two years ago, the negotiations for a nuclear agreement paved the way for the strengthening of our bilateral dialogue. Italy was at the forefront in upgrading its relations with Tehran, also with the aim of supporting the dynamics towards a positive conclusion of the negotiations in Vienna.

Italy and Iran have passed from MOUs to road maps and feasibility studies. Now they are moving towards contracts, due to be signed in the next few weeks or months.In July 2015, the JCPOA provided a new opportunity to step up our efforts. We didn’t miss it. Five Italian Ministers travelled to Tehran in few months, along with very huge business delegations.

Then, the so-called implementation-day gave even more impetus. President Hassan Rouhani chose Italy for his first official visit as a President in a Western Country; he spent 3 days in Rome at the end of January. Only 2 and a half months later, our Prime Minister Matteo Renzi reciprocated that visit and met in Tehran the highest authorities of the Islamic Republic. The solemnity of the protocol that President Rouhani reserved to him confirmed the exceptional level of respect between our two countries and the friendship among our leaders.

In Rome, the visit of President Rouhani showed the world that Iran was no longer close to business. Then, in Tehran, our Prime Minister Matteo Renzi said that Italy wants to revive a strategic partnership between our countries that has a great historical tradition. He suggested three main areas for our renewed dynamism: culture, politics and economy. Two weeks ago, in New York, both leaders confirmed their engagement in order to strengthen the bilateral partnership.

Q: What practical steps have been taken to implement agreements signed during Prime Minister Renzi’s visit to Iran and President Rouhani’s visit to Italy?

A: In order to promote a strategic economic partnership, many MOUs were finalized in the presence of the Leaders, both at the Roman Capitol in January and at the Saadabad Palace in April. Other important texts were signed in May, at the Iran Health Summit. Immediately after the signatures, the involved Italian groups and their Iranian counterparts started working very hard on the implementation: they passed from MOUs to road maps and feasibility studies. Now they are moving towards contracts, due to be signed in the next few weeks or months.

But let me observe that the strengthening of our bilateral economic partnership requires an action on three different levels: trade, joint ventures and cooperation on major Iranian projects, whether in infrastructure or in productive revival in the strategic sectors. The strengthening of trade has already begun, but only on high-quality products; while on the others the Iranian high tariff barriers and domestic competition will hamper any spectacular development.

A delegation from Tehran will represent Iran at the important, international event known as “Ecomondo”, scheduled to happen in the city of Rimini on November the 8th and 9th next.

As for joint ventures, our SMEs with strong technological capabilities can help revive Iranian factories that want to increase their competitiveness both on the domestic and on external market. It's a kind of cooperation that is particularly suitable for Italians and Iranians. It does not require large capital but spirit of initiative and willingness to share. With Italian updated technologies, modern management, established brands, you can upgrade the Iranian domestic production in crucial sectors also in order to substitute import, fully in line with the so called ''Resistance Economy'', that means a more sustainable economy.

As to the strategic projects, the path will necessarily be longer. As I said, we have already passed from the stage of the MOUs to that of the shared road maps and then to the feasibility studies. We are reaching the final step, under which the Iranian side will award big contracts to Italian companies on the basis of financial plans to be agreed in the coming weeks or months. It's clear that this was a longer route in comparison with trade or SME's joint ventures. But it is proceeding with the pace that it was reasonable to predict from the outset. We're not late, even on this third level.

And in general, it is absolutely not true that the re-launch of our economic partnership lies at square one.

                                                                                    Italian ambassador Mauro Conciatori 

Q: An Iranian human rights delegation visited Italy to exchange views with Italian officials. What was on the agenda and is the meeting in line with Iran’s readiness to hold bilateral human rights talks with the European Union? Any outcomes? Any future plan to reciprocate the visit?

A: The bilateral dialogue on human rights was initiated in December 2013 by Minister Zarif and former Italian FM Emma Bonino, during the latter’s visit to Tehran. Italy was the first EU Country to resume a dialogue on human rights with Iran. Three seminars at a technical level, involving judges, law professors and diplomats have been organized by the Iranian High Council for Human Rights and by the International Institute of Higher Studies in Criminal Sciences (ISISC) based in Siracusa (Sicily) in 2014, 2015 and 2016. The third meeting on "the Protection of Human Rights in the Criminal Justice System” took place in Rome three weeks ago. As in the previous occasions, the delegations were headed by the Secretary General of the High Council for Human Rights, Dr. Mohammad Javad Larijani, on the Iranian side; and by Prof. M. Cherif Bassiouni, Honorary President of ISISC, on the Italian. The Italian delegation is looking forward to receive an invitation to a fourth bilateral seminar next year, to be hosted by Iran.

This dialogue deals with the issues of human rights in the legal systems of our two countries without any prejudice and on an equal footing. Using a theoretical approach, it studies the different cultural backgrounds and different traditions of the two systems. It has come to the conclusion that there is a nucleus of concerns and values that are common to both systems. And on this basis, it can also tackle more concrete and more specific issues.

As for joint ventures, our SMEs with strong technological capabilities can help revive Iranian factories that want to increase their competitiveness both on the domestic and on external market.

Q: There has been a plunge, according to the Iranian Customs Administration data, in trade between the two countries over the past two years and this is ironical considering the JCPOA deal. What are the reasons?

A: Not to my knowledge. According to Italian data, our business has been growing since 2013: 1.2 billion Euros in 2013; 1.58 in 2014; 1.67 in 2015. Also in the first six months of 2016 we register an increase of 5.4% over the first half of last year. Maybe some partial data could be different. But the trend is clearly growing. I am convinced that progress on the two tracks we mentioned - joint ventures and investments in large projects - will soon allow further improvement. As I said, spectacular progress in trade flows is hampered by high Iranian tariff barriers in many areas. But I think that in 2-4 years we will return to the levels of pre-sanctions interchange.

Q: Iran and Italy are both touristic countries. Has there been any move to increase touristic visits and share experiences in this sector? If yes, what are the details?

A: Indeed, the cooperation in the field of tourism is growing. The number of Italian tourists who refer to Iran as the main destination for their vacation is increasing. Iran and Italy share two of the richest cultural heritages in the world. Traditions and history are ingredients that attract a growing flow of tourists on both sides. Direct flights and visa facilitations help bilateral tourism relations. The Italian carrier Alitalia is investing on Iran, a daily flight to Rome is successfully operating on regular basis. Moreover, Iran is working to improve the quality of its touristic offer. Technical expertise is needed to protect and preserve the national cultural heritage, as well as to increase the number of available accommodation. It is also important to improve and renovate the transport net in order to match with the growing demand of services from tourists. Italian Universities, Italian Museums and specialized Italian business community are present to play a significant role in this context.

Q: Iran has been complaining that European banks have shown reluctance to enter partnership with Iranian counterparts. Is that the case with the Italian banks, as well? Have you been in contacts with Italian banks over the issue?

A: Italy plays a pioneering role also in this field. Many Italian primary Banks accompanied Prime Minister Renzi during his two-day visit in Tehran last April, and regular contacts have been intensifying. Our Ministries of Finance, our two central banks, as well as private banks, have a close dialogue to reach the most suitable framework of cooperation. Our two Ministers of Finance, Prof. Padoan and Dr. Tayyeb-Nia, met in Washington last week. Many Italian banks are now working in Iran through a wide net of local correspondent banks. Some of them are negotiating basic financial agreements. They already perform a variety of services, which, together with the reopening of SACE (the Italian Export Credit Agency), represent a fundamental instrument for the business to grow and catch the opportunities offered by the economy of the Islamic Republic. Once some strategic texts on financial agreements and sovereign guarantees will be finalized, the ongoing dialogue will also pave the way for the financing of many Iranian priority projects.  

Q: On September 5, an Italian military delegation visited Iran. Does it mean the start of closer military ties? If yes, in what areas?

A: The staff talks held in September in Tehran enrich political dialogue between Italy and Iran on a new component. It was a first contact, on a purely technical level, after many years and it has been carefully prepared. It enabled a first exchanges of information on institutional issues. The two sides also called for new symbolic gestures. And in fact, from 24 to 27 September, the Italian military ship “Euro” was a guest in the Port of Bandar Abbas. In any case, in this area we have agreed to proceed gradually. This is a subject in which time is not an enemy but a partner.

Q: Have any steps been taken to implement the agreement signed between Iran and Italy on environmental protection?

A: Environment is one of the main subjects of cooperation between us. The MOU in this field is the very first of a series of bilateral agreements signed even before the lifting of sanctions. Italy is well aware of the challenges and commitments of the Islamic Republic in the environmental sector and is ready to provide any type of expertise needed to reach those objectives. In 2016, the bilateral Environment Steering Committee has gathered twice, and the Italian Government has granted 3 million euros for projects to be developed in Iran. From 24 to 26 of October next, a seminar on renewable energies, water treatment and waste recycle will take place in Tehran in close cooperation between the Italian Ministry of Environment and the Iranian Department for Environment. Then, a delegation from Tehran will represent Iran at the important, international event known as “Ecomondo”, scheduled to happen in the city of Rimini on November the 8th and 9th next. A second visit to Iran of the Italian Minister Galletti could take place early next year. In this framework, I can also mention the dialogue established with the Iranian Agency responsible for the development of renewable energies (SUNA) within the Ministry of Energy, and the great interest shown by Italian private sector in this field.

Q: Oil and gas sectors are one key area for the expansion of ties. What is the prospect, particularly in the light of the agreement between the Italian Eni and National Iranian Gas Company?

A: Energy is a key sector for Iran, and the Italian business community is ready to play its role in an evolving environment. The complementarity of our countries is undoubtedly an asset. ENI has a long history in Iran and it always maintained an active office in Tehran. I believe that ENI will seriously evaluate the terms of the new IPC and further expand its ties with Iran if the new terms will allow. Other major Italian companies have shown great interest for the opportunities of the Iranian market. ENEL opened talks with Iranian counterparts, while strong perspectives of cooperation emerge in the field of renewable energies as well as in the vast spectrum of services that Italian companies can provide to energy sector.

Q: Our last question has to do with cultural ties. How do you see the way forward?

A: We have not yet talked about cultural relations. In the case of Italy and Iran, they are a crucial aspect, not an accessory, of the bilateral partnership. Not surprisingly, in Tehran the President Renzi always mentioned them before any other aspect. He always explained that between two so ancient Peoples, everything flows from the mutual understanding; from our skills for cultural mediation; from our deep curiosity for what is different, for what is "other".

Our cultural relations are developing very quickly and this trend will soon strengthen. During the last months, our Embassy has been facilitating a lot of joint cooperation between prestigious Italian and Iranian cultural institutions: for example, the exposition in Milan, then in Tehran, of the Penelope of the 5th c. BC owned by your National Museum, together with her 3 Roman copies owned buìy Italian Museums. Or the recent concert in the Vahdat Hall of “Solisti della Scala”, three weeks ago, in cooperation with the Roudaki Foundation.

Next May, Italy will be guest of honor at the Tehran International Book Fair. In close contact with our Iranian counterparts, we are preparing a rich program, both for the Fair itself and for the preceding months. In fact, we will organize a number of events to better introduce the Italian culture in its different aspects to the Iranian public: from November onwards, this path will end in the May event. Those activities will mark a further upgrading of our cultural relations.

AK/PA