WASHINGTON: The US and European governments announced on Friday that they would no longer prevent international companies from doing business with Iran if they followed all applicable rules.

“We will not stand in the way of permitted business activity with Iran, and we will not stand in the way of international firms or financial institutions’ engaging with Iran, as long as they follow all applicable laws,” said a joint statement issued in Washington.

France, Germany, Britain, the United States and a high representative of the European Union signed the statement that explains their policy for doing business with Iran.

Last year, the United States and the European Union lifted economic and financial on Iran after signing an agreement called the Joint Comprehensive Plan of Action (JCPOA).

In return, Iran agreed to significantly curtail its nuclear programme.

The statement noted that by end of 2015, both sides had met the conditions included in the nuclear agreement and on Jan 16, the US and EU started lifting the sanctions.

“As a result, there are now extensive economic opportunities for companies and financial institutions in Europe and around the world to do business in Iran,” said the joint statement by the US State Department.

In the JCPOA, all parties pledged to take steps to ensure Iran’s access in areas of trade, technology, finance and energy. In this context, the EU and its member states are exploring possible areas of cooperation with Iran, including the use of export credits to facilitate trade, project financing, and investment in Iran.

The joint statement noted that the due diligence required for sanctions compliance was not unique to business opportunities in Iran.

Published in Dawn, May 21st, 2016