Some very good articles I have posted below on the trade...

Some very good articles I have posted below on the trade relations between iran and australia

Cheers

http://www.dfat.gov.au/geo/iran/iran_country_brief.html
Iran Country Brief - October 2005
Political Overview
Economic Overview
Bilateral Relations
Trade
More information on Iran


Political Overview
The 1979 Islamic revolution transformed Iran, abolishing the existing monarchy and establishing an Islamic Republic. The political system now comprises both elected and un-elected institutions. The Supreme Leader is Iran's highest political authority and is chosen by the Assembly of Experts, a body of 86 clerics (elected on a regional basis).

The President, the unicameral Islamic Consultative Assembly (or Majles) and municipal councils are elected every four years on the basis of universal suffrage. Electoral candidates are vetted by the Guardian Council, which consists of six clerics, appointed by the Supreme Leader, and six legal figures, appointed by the Head of the Judiciary and approved by the Majles.

The Majles has the power to initiate bills, but the Guardian Council must approve all bills passed by the Majles as consistent with Islamic law and the Iranian Constitution. The Expediency Council (with ex officio members including the President and members appointed by the Supreme Leader) can, however, pass a Majles bill into law, overriding the Guardian Council.

Reformist President Khatami was elected in 1997 and re-elected in 2001. He sought to increase social freedoms and modernise Iran's economy. While a reformist-dominated Majles was elected in 2000, implementation of the reform agenda was largely frustrated by the conservative domination of the Guardian Council.

Presidential elections were held on 17 June 2005 to replace Khatami but no candidate was able to secure the fifty per cent majority required to be elected outright. A second round of elections on 24 June saw Tehran Mayor Mahmoud Ahmadinejad elected as President.



Economic Overview
With a large and fast-growing population (estimated to be approaching 67 million in 2004) and among the world's largest oil and gas reserves, Iran is a significant regional economy.

The economy is heavily dependent on hydrocarbon exports, and economic growth is strongly influenced by oil market developments. Around 80 per cent of total export earnings are generated from oil revenues. A key goal of Iranian economic policy over the last 20 years or so has been diversification of the economy away from dependence on oil.

Large state-owned enterprises dominate key industry sectors, and organisations controlled by charitable religious foundations also account for a large share of GDP. The private sector is generally confined to small and medium enterprises. The reformist dominated 6 th Majles pushed to increase privatisation and foreign investment, but this policy has been challenged by conservatives elected to the current Majles. Although the economic policies of President Ahmadinejad's new government have not been set, they may be more nationalistic and populist than those followed by Khatami. Ahmadinejad was elected on the promise of a return to "revolutionary values". Ultimately, decisions of the Supreme Leader and the Expediency Council will decide the success of economic reform.

In recent years economic growth has not kept pace with labour force growth, leading to an unemployment rate, which, on unofficial estimates, exceeds 30 per cent (the official estimate is 16 per cent). Increasing the economy's growth rate in order to reduce unemployment is a high priority but, to date, economic reform has proceeded only at a modest



Bilateral Relations
Australia has maintained a continuous diplomatic presence in Iran since our Embassy opened in Tehran in 1968. Iran opened an Embassy in Canberra in 1971 and has maintained a presence in Australia since then. In recent years, there has been a significant two-way flow of high-level visitors including visits by Mr Downer (2000, 2003) and Mr Vaile (2002) to Iran and visits to Australia by the Iranian Foreign Minister Dr Kharrazi (2002) and the Secretary of the Supreme National Security Council, Dr Rowhani (2004). Parliamentary delegations from both countries visited in 2003 and 2004.

Our relationship with Iran has a solid base in trade and has developed to the stage where we can conduct open and serious discussions on a range of important issues, including terrorism, disarmament and human rights.

During his visit to Tehran in May 2003, Mr Downer discussed critical regional and global security issues as well as Australia's ongoing bilateral relationship with Iran. Since then, the Government has consistently reinforced with Iran Australia's long-standing opposition to the proliferation of nuclear weapons. As a member of the Board of the International Atomic Energy Agency, Australia is working constructively in support of international efforts to resolve outstanding questions about Iran's nuclear activities.



Trade
Iran has traditionally been one of Australia's leading wheat export destinations, and has also attracted interest from a range of Australian exporters and investors. Other Australian agricultural exports to Iran include barley, animal oils and fats, meat and butter. Coking coal is Australia's major non-agricultural export to Iran. Australian expertise in agriculture, mining and civil engineering has wide application in Iran.

Australia's exports to Iran amounted to $152 million in 2004, down from $263 million in 2003 largely as a result of a decline in wheat exports and the impact of a stronger Australian dollar. Australia's imports from Iran amounted to $27.9 million, down from $52.6 million in 2003. Pistachios and carpets have traditionally dominated Australia's imports from Iran. Technical factors have long limited Australia's ability to import Iranian crude oil.

Iran is a market of significant interest and potential to Australian companies, particularly in the oil and gas sector. Both countries are interested in diversifying the bilateral trade relationship beyond traditional commodities. We are particularly interested in expanding the trade relationship to include more trade in services, for example in mining, energy and education.

A series of Joint Ministerial Commissions (JMCs) has helped expand trade and investment ties. Mr Vaile led a delegation of 54 business representatives to Tehran in September 2002 for the 9 th meeting of the Australia-Iran JMC. Australia and Iran are negotiating bilateral agreements on trade and investment promotion and protection to facilitate two-way trade and investment.








Media release
Thursday 12 September 2002 - MVT109/2002
Australia - Iran Trade Relations Move to a New Plane
Australian-Iranian trade relations were set to move to a new plane, Trade Minister Mark Vaile said today.

Mr Vaile led a delegation of 54 representatives from 34 Australian companies to Iran during his three-day visit.

"The size of the delegation clearly demonstrated the level of enthusiasm amongst Australian businesses for expanding Australia's commercial relations with Iran," Mr Vaile said.

During his visit, Mr Vaile was received by Iranian President Khatami, President of the Expediency Council, Ayatollah Rafsanjani, Ministers for Agriculture, Industries and Mines, and the Governor of the Central Bank of Iran. Mr Vaile also co-chaired, with the Iranian Minister of Agriculture, Mr Hojjati, the ninth Australia-Iran Joint Ministerial Commission (JMC).

"Australia and Iran have agreed to give priority to negotiations on an Investment Protection and Promotion Agreement, with the first round of talks to take place in the first half of 2003.

"We are entering into negotiation on this Agreement to ensure that Australian companies can take full advantage of the growing investment opportunities in Iran and new reforms to the Iranian investment regime.

"The JMC communiqué highlights the maturing of Australia-Iran commercial relations, by emphasising a greater commitment to moving beyond traditional trade patterns to new sectors such as investment, services, and technological transfer."

Mr Vaile said key outcomes of the visit included confirmation that the AWB Ltd will provide a further 530,000 tonnes of wheat to Iran this year; the early conclusion of a technical services agreement by BHP-Billiton and PetroIran and the likely re-opening of Australia's livestock export trade to Iran following a break of two decades.

Mr Vaile also welcomed the announcement by CSIRO of its participation in the establishment of a new $145 million Iranian Minerals Research Centre; an agreement to cooperate in the fields of smart cards, GSM, fibre optic cables, training and research and development centres using technologies developed by the Australian companies Vecien and Intercard Wireless Limited; and the expansion of cooperation between Curtin University and its Iranian counterpart in the development of petroleum-related academic programmes.

Mr Vaile said that these substantial outcomes highlight the opportunities available to Australian companies in the Iranian market and clearly demonstrate that our trading relationship with Iran has moved to a new level.

Communique: Ninth Joint Ministerial Commission of the Islamic Republic of Iran and Australia Tehran 18-21 Shahrivar (9-12 September)

Media Contact: Mark Croxford +61 02 6277 7420