New Agreement Paves the Way for Closer Economic
Co-operation with the EU

During his official visit to the Austria on mid March 2002, H.E. Ali-Naghi Khamoushi conducted useful negotiations with Austrian and European economic officials, and signed an agreement with the Association of European Chambers of Commerce and Industry (Eurochambres), to pave the way for more economic co-operations between Iran and the EU. Following is the text of the Eurochambres' press release, followed by the text of the agreement.

EU Foreign Ministers met on 13 May 2002 in Brussels, to discuss the mandate of the European Commission to negotiate a trade and co-operation agreement with Iran.

Eurochambres, the Association of European Chambers of Commerce and Industry, calls on the Foreign Ministers to develop stable relations with Iran by means of a trade and co-operation agreement. The EU is Iran's leading commercial partner. President of Eurochambres, Dr. Leitl stated; "We strongly support the development of business and trading bridges with Iran. We urge the European Union to approve an appropriate framework for trade and co-operation, to facilitate the development of mutually beneficial entrepreneurial activities in both regions. Economic stability is the bedrock for political stability."

With a view to favouring and underpinning the establishment of bilateral relations, on 12 March 2002 Eurochambres signed a co-operation agreement with the Iran Chamber of Commerce, Industries and Mines. Eurochambres and the Iran Chamber undertook to initiate and develop bilateral actions of co-operation within the principle of mutual assistance and support, in line with the following priorities:

• to develop strong institutional relations in order to establish a sustainable mechanism of dialogue and forums of discussions;
• to provide their members with information on the general economic situation, taxation, investment opportunities, trade policies and legislative changes therein;
• to promote the establishment of legal and administrative conditions favourable to the creation of a business climate enhancing the development of trade and economic relations between both regions;
• to promote the organisation of training courses for their staff and the staff of their members in order to develop a knowledge of the economic intricacies of each respective region; and
• to develop tools of co-operation between Eurochambres and the Iran Chamber, which would allow an effective role of both parties in the implementation of the EU/Iran Trade and Co-operation Agreement.

By means of this Co-operation Agreement with its Iranian counterpart, Eurochambres wishes to show its strong commitment to political and economic stability in Iran. It is now time for EU Ministers to effectively encourage and support Iranian efforts to open Iranian society and to liberalise and deregulate its economy.

AGREEMENT
OF
CO-OPERATIION
between the
Iran Chamber off Commerce,
Industries and Mines
and
EUROCHAMBRES
Association of
European Chambers off Commerce and Industry

Considering:

- The current development of the relations between the European Union and the Islamic
Republic of Iran, which should lead to the conclusion of a Trade and Co-operation
Agreement,

- The importance that the business community in both the European Union and in the
Islamic Republic of Iran are giving to the strengthening and the promotion their economic and trade relations,

Eng. Ali Naghi Khamoushi
President of the Board of Directors of the Iran Chamber of Commerce, Industries and Mines, hereafter referred as the Chamber and

Christoph Leitl
President of Eurochambres,
Association of European Chambers of Commerce and Industry, hereafter referred as Eurochambres have agreed to sign the present agreement.

1. The Chamber and Eurochambres formally undertake to initiate and develop bilateral
actions of co-operation within the principle of mutual assistance and support, in line with
the following priorities:

- to develop strong institutional relations in order to establish a sustainable mechanism
of dialogue and forums of discussions;

- to provide their members with information on the general economic situation, taxation,
investments opportunities, trade policies and legislative changes therein;

- to promote the establishment of legal and administrative conditions favourable to the
creation of a business climate enhancing the development of trade and economic
relations between both regions;

- to promote the organisation of training courses for their staff and the staff of their
members in order to develop a knowledge of the economic intricacies of each
respective region;

- to develop tools of co-operation between the Chamber and Eurochambres which would
allow an effective role of both parties in the implementation of the EU/Iran Trade and
Co-operation Agreement to come.

2. The Chamber and Eurochambres undertake to promote within their respective regions
and institutions all aspects related to economic development and trade relations between the Islamic Republic of Iran, the European Union and its Member States.

3. The present agreement shall enter into force upon its signature.

4. Modifications and amendments to this agreement must be approved by the competent
bodies of each organisation.

5. This agreement may be terminated by either party by written notice to the other party within a sixty days notice.

The present agreement has been established in two copies, equally authentic, each party recognising having received its copy.

Signed in Vienna, on 12 March 2002

Eng. Ali Naghi Khamoushi,
President of the Board of Directors of the Iran Chamber of Commerce Industries and Mines

Christoph Leitl,
President of Eurochambres,
Association of European Chambers of Commerce and Industry