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German businesses complain that bans on certain exports only benefit their foreign competitors.
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The ongoing western policy of pressure, threats and sanctions against Iran has failed and there is a need for a new western approach, a leading German expert said on Thursday.
According to IRNA, the former head of Berlin-based German Institute for International and Security Affairs (SWP), Christoph Bertram wrote in an op-ed piece for the Hamburg-based weekly Zeit news magazine that western plans to impose tighter sanctions against Iran are doomed to fail as well, citing 30 years of futile US sanctions policies towards Tehran.
“It does not make sense to stick to this policy any longer,“ Bertram stressed.
“Anyone who wants an Iranian change of mind or even concessions must stop threatening Iran and engage in a new, cooperative relationship with Tehran,“ he added.
The ex-director of London’s International Institute for Strategic Studies (IISS) has repeatedly called on western governments to engage in nuclear talks with Tehran without any preconditions.
Bertram has made clear that a western detente policy with Iran had to include Tehran’s right to enrich uranium for its civilian nuclear program and fair solutions for all remaining non-nuclear problems.
Such a western Iran initiative has to be led by the US, the scholar was quoted saying.
Bertram is among several prominent Mideast experts in Germany who have expressed deep skepticism over Berlin’s current Iran policy.
Seeking Lost Trade
German businesses have long complained about tough restrictions on trade with Iran, arguing that bans on certain exports only benefit their foreign competitors. Now a far-reaching court decision is posing a challenge to the government’s rigid policies, Spiegel Online wrote.
The tone of the letter to the German Foreign Ministry may have been polite, but the content was pointed. Over five pages, Martin Jager, the chief lobbyist for carmaker Daimler, explained why Berlin’s export restrictions on trade with Iran place German industry at a serious disadvantage.
According to Jager, the German government’s rigid position achieves only one thing, namely that goods being exported to Iran are no longer coming from Germany, but from countries like France and Sweden.
Instead of Daimler, the companies that benefit from trade with Iran include Renault, Volvo and Iveco, which are able to sell their goods largely unencumbered by restrictive regulations. Jager asked if that was really what the German government wanted.
The urgent letter, ironically, written by a former spokesman to Foreign Minister Frank-Walter Steinmeier, is a result of the German government’s decision to ban the export of German-made semi trucks to Iran.
In the past, Daimler has sold up to 1,000 trucks a year to Iranian companies. The company’s Actros series, assembled in the southwestern German town of Worth, is seen as a showpiece of German motor vehicle manufacturing.
A semi truck in the series sells for $138,000. As a result of the embargo, Stuttgart-based Daimler stands to lose millions of euros in annual sales.
Drawing the Line
The conflict over the semis is the most recent climax in a long-brewing conflict between the political and business communities. At issue is the difficult question of where to draw the line between foreign policy interests and economic freedom. Germany is not just the world’s export champion, but is also a frontrunner when it comes to blocking exports headed for the Persian Gulf region.
Now a decision by the Munich Higher Regional Court could force the government to change its hard line against Iran. The case brought before the Bavarian judges involved charges brought by the Federal Prosecutor’s Office against Saeed S., a German-Iranian from the western state of North Rhine-Westphalia who had supplied companies in Tehran. The investigators believed that the recipients were working for the government-run defense industry. In a decision with far-reaching consequences, the Munich judges not only refused to allow the case to proceed, but also called the entire German export monitoring system into question.
The judges found fault with the German government for its fear of international criticism. If Germany insists on pursuing its own national approach on the issue, they wrote, it must explain convincingly what it means by a “significant impairment of foreign relations“ and that simply making reference to German history is insufficient. The Munich judges revoked a warrant for the arrest of Saeed S. and ordered the $138,000 in bail money to be repaid.
German industry is also watching the legal tug-of-war with great interest. After year-on-year exports to Iran fell by roughly a third in January 2009, trade groups hope to see the courts relax sanctions.
If the Frankfurt judges concur with their Munich colleagues, Daimler’s prospects will likely improve. Just in case, the Stuttgart-based company has already applied for a permit to export its semi trucks to Iran--despite the embargo.