Future Impacts of Uplifting Iran Sanctions – Indigo Ball – 18 Jan 2016
Finally, after many years, the European Union (EU) has uplifted the sanctions on Iran. This decision of uplifting sanctions has huge after effects, as it could be turning point of political and economic situation of the Asian continent and global world. Because, due to sanctions, the Iran had gone into isolation and now it will come back again with its significant role in international political and economical environment. Especially, when the tensions between Saudi Arabia and Iran are quite hot.
The decision of uplifting sanctions have been made after the Yukia Amano, chairman of the International Atomic Energy Agency (IAEA), after inspection of the Iranian atomic program, has confirmed that the Iran has conformed to required criteria of its atomic program, which has been reduced to a limited level in accordance with IAEA agreement. The other provisions of this agreement include reducing the volume of sanitary fudges and shutting down hard water reactor, which were being used before in atomic activities.
This new political development would have plenty of after effects in Asian and global political and economic point. Mostly, the upcoming emerging trends would be more favourable for Iran from political, economic and social perspective.
Geographical and Global Political stability:
According to Federica Mogherini, high representatives of the European Union for foreign affairs and security policy and also vice-president of European commission in Juncker Commission, the impact of uplifting sanctions would result in overall stability of Asian and global political environment and peace process.
Unblocking Iranian Assets:
In accordance with the agreement, the international establishment (USA and EU) would unblock the blocked assets and reserves and Iranians would be able to use these assets reserves, which are over 100 billion dollars in amounts. This would improve the overall economic position of Iran.
Now Iran would be able to sell his oil in international markets, which was not possible under sanctions. Since 2012, due to sanctions, the Iranian economy has to bear the loss of over $160 billion, because it was not able to sell his oil in international market and now it can sell. The return of Iran in international oil markets would be economically beneficial for Iran, but it might be a competitive threat for existing oil producing countries.
The uplifting of sanctions would enable the Iran to take active part in global trade. Other than oil selling, the Iranians would be able to do import and exports with other neighbours and international countries. For example, before 2012, the trade volume between Pakistan and Iran was significant, which is expected again to rise after uplifting of sanctions.
After 2012, the nature of global relations has been significantly changed. First, there has been intense relationships between Iran and the rest of the world, especially with America and European Unions. Secondly, the countries were also getting into clusters (blocks). Now, this decision would result in smoothening relationships between Iran and international establishments. As announced, on Saturday, the Iran is going to release three American prisoners, including journalist of Washington post. In return, l the America would also release 7 Iranian prisoners, which were held on the charges of violation against sanctions. So, the decision of uplifting sanctions would improve global relations between Iran and the rest of the world.
Saudi Arabia – Iran Tensions:
Currently, the tensions between Saudi Arabia and Iran are at peak. Previously, the Saudi Arabia was in a dominant position, while uplifting sanctions would help the Iran gain some bargaining power and resolve the matter carefully.
Fight against ISIS:
Today, when an international establishment has taken its position against ISIS and Iran is already contributing significantly. At this point, the uplifting of sanctions would help the Iran to improve his power and contribute more in the fight against ISIS.
The decision of uplifting sanctions from Iran has also faced criticism from different sectors of society. Overall, the critiques are not happy with this decision, which might be due to political or security reasons. The justifications of criticism have been provided as follows;
According to American Republicans, the uplifting of sanctions on Iran would result in increase of atomic weapons in the overall world. Because, in their opinion, the conditions, of an agreement between Iran and the international establishment, are not enough for stopping Iran to make atomic weapons, as the chosen measures are not much effective.
Another American parliament speaker, Paul Ryan, has criticized Obama president, as it is helping again the terrorisms to prosper and uplifting sanctions on Iran is not a productive measure during the fight against terrorism. Similarly, the Netanyahu, Prime Minister of Israel, has claimed that even under atomic agreement with the IAEA, the Iranians didn’t stop his plan to make atomic weapons and Iran is going with his existing plan.
In short, either this is a good decision or bad decision, this new political development has great after effects and it would change the political and economic dynamics of both Asian and global politics.