Research

For much of Iran's modern history, the Iranian people have been divided on issues such as traditionalism versus modernity and the nature of their relationship with the West. These divisions only highlight the need for organic political change to allow society to find common ground. However, outside political interventionism has been a constant setback, whether during the Constitutional Revolution period, the 1953 US/UK coup, or now with Trump's exhortations and actions.

Iran’s economy is having difficulties for sure but is far from “collapsing”. While the Iranian rial has lost more than 50 percent of its value against the US dollar in the unofficial market since January 2018, this is nothing new for Iran’s economy. Every president since the end of Iran-Iraq war had to deal with a sort of analogous currency crisis.

President Trump enacted steel and aluminum tariffs in March, citing national security.  China is the intended target, as most other major suppliers were eventually exempted. On April 2, China retaliated by imposing tariffs on 128 American products (representing about $3 billion of trade), ranging from 15% on fruits to 25% on pork.  Trump April 3 announced 25% tariffs on another 1300 Chinese products [representing some $50 billion of trade], citing forced transfer of US technology and IPR. China on April 4 responded with plans for retaliatory 25% tariffs on 106 US exports -- including soybeans, autos, and airplanes -- to go into effect when the US tariffs do.  On April 5, the White House announced it was considering $100 billion of additional tariffs on China.

If these tariffs go ahead, yes, it is a trade war. How will it end?

The recent protests in Iran are surely a wakeup call for President Rouhani. To respond the legitimate grievances of low-income Iranian households, the Rouhani government should do its best to further diversify the Iranian economy and to bolster its manufacturing and industrial sectors. The Rouhani government should also promote the export of non-oil products, following the models of countries such as South Korea, Taiwan, and recently, the Chinese leviathan. Labor-intensive industries as well as service sectors like information technology, ought to be solidified. Rouhani should call upon state-directed industrial committees and agencies to provide Iranian entrepreneurs and manufacturers with fiscal resources, and he should foster financial support and protection for firms that place emphasis on exporting goods abroad.

As the world’s largest nuclear facilities operators, U.S. corporations understand all aspects of nuclear programs. Employing those same corporations to partner and collaborate with Iran on nuclear projects would be a major confidence-building step that would secure trust between the two sides after the sunset provisions of the deal expire. The people of Iran and the United States have never been enemies. Now is the time to seek a legitimate business-based compromise that can allow the United States and Iran to fully execute the JCPOA in full compliance with both the substance and intent of each of the deal’s signatories while pursing the long-term goal of eliminating the growth and proliferation of nuclear weapons and nuclear terrorism. To this end, Iran and the US can in parallel collaborate on eliminating the risk of proliferation in the region and establishing a Middle East free from all weapons of mass destruction.