Nuclear Issues

If the intended aim of the new round of U.S. sanctions were to change Iran’s behavior, it already has. Just not the behavior the Trump team had in mind—Iran abandoning its pursuit of pro-market economic reforms. President Hassan Rouhani, who was elected twice, in 2013 and 2017, on a platform of liberal economic reforms, has piece by piece put aside his reform agenda. Because of the economic havoc wreaked by the re-imposition of U.S. sanctions, he finds himself in the odd position of overseeing price controls, punishing commodity hoarders, subsidizing imports of a variety of goods, including mobile phones, and has lost the most liberal members of his economic team

The US withdrawal from the JCPOA has laid bare the strategic contradictions inherent in this approach. The United States has abrogated its leadership position on global nuclear non-proliferation while demanding trust and support from allies. It has also reopened the prospect of Iranian nuclear armament while forfeiting the moral and institutional ammunition the US would need to clinch a better deal.

Trump's strategy appears to be one of brinkmanship—rocking the boat in hopes that the other party is less risk-tolerant and will give in before the boat capsizes.

Air Vice Marshall (Ret.) of the Indian Air Force and Fellow at Harvard's Asia Institute, Dr. Arjun Subramaniam spoke at the Future of Diplomacy Project with its Faculty Director, Nicholas Burns about the intricacies of the India-China relationship.

Nuclear energy powerhouse Westinghouse Electric Co. filed for Chapter 11 bankruptcy on 29 March, with its parent company Toshiba writing off more than $6 billion in losses connected to its US businesses. Westinghouse was engaged in negotiations to build six AP1000 nuclear reactors in India as part of the landmark US-India civilian nuclear agreement. The bankruptcy filing raises fresh questions, not just about the fate of the reactors, but also about the future of the nuclear deal.

"Now that President Barack Obama has secured more than enough votes in the U.S. Senate to assure the implementation of the agreement with Iran on nuclear issues and sanctions, we can focus on the lessons learned from the process’ intense political dynamics. Three in particular stand out: U.S.-Israeli, U.S.-Saudi Arabian/Gulf Cooperation Council (GCC), and GCC-Iranian relations. U.S.-Israeli bilateral ties get the most attention these days, but all three are equally important, and turbulent in their own ways."

In the wake of yet another extension in the nuclear negotiations between Iran and the P5+1, the next step for the United States to move toward a final comprehensive agreement with Iran is to engage with those Iranians it likes the least—the hardliners. Crafting a sophisticated agreement capable of persuading Iranian hardliners and the Revolutionary Guards to accept a final deal is essential to moving the negotiations forward. Iranian President Hassan Rouhani and his moderate team of negotiators are constrained by the hardliners who, in turn, have nothing to lose if negotiations fail. While the lifting of international sanctions is commonly considered to be the main economic incentive for Iran to agree to a deal, we should be aware that many U.S. sanctions will remain against key hardline actors in the Iranian regime for non-nuclear related reasons. In other words, those hardline elements most opposed to the current talks—the spoilers—are also the ones that have the least to gain from their success.

"...[S]anctions played a part in changing Iran's behavior, but not because they forced Iran to return to the negotiation table out of fear of economic collapse. Rather, sanctions contributed to a transformation of the balance of power within the Iranian political system that had been already underway since 2009 — prior to the enactment of the current sanctions regime. Sanctions helped pave the way for a Rouhani victory in the 2013 presidential elections..."