Speak Very Softly

By A. John Rasdan

January 2002

Sometimes, silence is golden. Silence should be the American policy as Iran takes the first steps toward becoming a member of the World Trade Organization. Next month, when the WTO reviews Iran's request to have its membership application considered, the Bush Administration should not raise any objections. Considering our history of conflict with Iran, keeping mum on its WTO application might appear, on first thought, to be an unnatural reaction. But having Iran join the WTO waiting list is in the best interests of the United States, the global community, and Iran.

How does the U.S. benefit from Iran's WTO application process? WTO status for Iran would require widespread economic reforms in that country. The Iranian government would have to open its books for review, pass new foreign investment laws, eliminate many protective subsidies and tariffs, and enact policies that protect the intellectual property of U.S. software, videos and books that today are pirated for sale on the streets of Tehran.

These free market reforms would trigger social and political changes and introduce greater freedom and democracy in Iran.

But sadly, the U.S. stands out from the WTO's 144 members for so far having blocked Iran's application for membership consideration. This intransigence is perhaps the most illogical of any U.S. unilateral economic sanctions because Iran seeks not a stream of revenue, but merely a chance to prove that it can abide by stringent international disciplines.

Supporters of Iran's isolation still suggest that to engage Iran in any way would be an endorsement of an Iranian regime that is out of step with its more progressive and free market-minded citizens. In fact, the opposite is true. By engaging Iran and encouraging its exposure to the WTO process, we would help bring about the social, economic and political changes in Iranian society that we have long sought.

The Chamber understands that the U.S. cannot and should not interfere in the internal political dynamics of another country. Even so, building bridges between the U.S. and the Iranian private sector, encourages progress, growth and stability in that country while dispelling the mistrust that has come from twenty years of estrangement.

We must also remember that failure to engage Iran and encourage its movement toward WTO membership puts U.S. businesses at a disadvantage with its global competitors. Since September 11, our European Union allies have stepped up their efforts to negotiate a free trade agreement with Iran. Apparently, Europeans do not fear that Iranian consumption of French cosmetics and Italian sewing machines will undermine EU ideals or strengthen Islamic extremists. As long as the U.S. blocks Iran's negotiations with the WTO, we are allowing the Europeans to gain a lock on the Iranian market.

Canada shares the Europeans' view of Iran. The Canadian Chamber of Commerce is one of the largest and most active in Iran. So, while Europeans and Canadians trade and invest in Iran, the U.S. stands proudly and absurdly on the sidelines. Even more absurd would be to prevent Iran from trying to play fair on a diverse field with 144 other members of the WTO.

After more than 20 years of estrangement, normal U.S.-Iranian relations will not happen overnight. The American and Iranian governments are not yet ready for bilateral discussions or cooperation. But they have found it in their interests to work on Afghanistan together. This is an important step.

The formation of a working party to assist Iran's WTO accession is the logical next step. Assisting Iran's movement toward inclusion in the international community of nations would provide the U.S. and Iran another forum for cooperation, rather than confrontation. And it would force Iran to diversify its economy, become less ideological, and more inclined to quell mischief. In other words, Iran's application for WTO membership is good for the U.S., good for the global trading system, and good for the Iranian people.

A. John Rasdan is special advisor is partner in the international law firm of Afridi, Angell & Pelletreau and and former U.S. Prosecutor. He serves as Special Advisor on Iran to the U.S. Chamber of Commerce.