04.08.2009

Switzerland and Iran: Deepening Ties

Although Switzerland and Iran have normal diplomatic relations, they are more limited since the UN imposed sanctions on Iran in 2005. As the United States has no diplomatic relations with the Islamic Republic of Iran, the Swiss embassy in Teheran represents  American interests. Because of this representation, the Swiss government often acts as a diplomatic mediator between the US and Iran.

Diplomatic Relations

• Following the fiercely disputed Iranian elections of June 2009, Swiss Foreign Minister Micheline Calmy-Rey called on the Iranian government to show restraint in the use of force against peaceful demonstrators, stressing the importance of freedom of expression in the country. She also called for an investigation into election irregularities, adding that the Swiss government did not wish to endanger the opposition and wanted to maintain a dialogue with Tehran since the Swiss embassy has the additional responsibility of representing American interests in Iran. [1]
  
• On 1 July 2009, the Swiss Foreign Ministry summoned the Iranian ambassador to express Switzerland’s concern over tensions following the disputed presidential elections in Iran. Foreign Ministry spokespeople reportedly reminded the Iranian delegation that human rights ought to be respected in Iran and conveyed Switzerland’s concern about Iranian acts of violence. [2]
  
• Calmy-Rey caused some controversy after publicly appearing wearing a headscarf at a meeting with Iranian President Mahmoud Ahmadinezad on a trip to Iran in March 2008, which raised questions about Switzerland’s stance towards women’s rights in Iran. [3]
  
• In June 2009, Switzerland held diplomatic talks in Geneva with officials from the Iran-backed Palestinian terrorist organization Hamas. This meeting caused outrage in Israel and the United States, but Swiss officials affirmed that as a recognized neutral country, Switzerland routinely acts as a “bridge” between warring parties. Swiss Foreign Minister Calmy-Rey claimed that “great progress” had been achieved in the meeting regarding an unofficial peace plan. [4]
  
• In October 2008, Calmy-Rey met in Geneva with Iranian parliament president Ali Larijani to discuss Iran’s nuclear plan as well as other pressing issues. Iranian officials stated that Switzerland has a “major role” to play in the resolution of nuclear issues and the meeting seemed to strengthen the dialogue between Iran and Switzerland.  [5]
  
• Calmy-Rey did convey to Larijani that Iranian declarations calling for the State of Israel to be wiped off the map were unacceptable to Switzerland. [6]
  
• In April 2009, Swiss President Hans-Rudolf Merz met with his Iranian counterpart Mahmoud Ahmadinejad at the Intercontinental Hotel in Geneva on the occasion of the Durban II Conference on Racism.  At that event, Ahmadinejad gave a speech attacking Israel which caused European Foreign Ministers to walk out . During his electoral campaign in May 2009, Ahmadinejad cited this meeting as proof that the Swiss shared the same anti-American sentiment as the Iranian regime, causing diplomatic embarrassment for the Swiss government. [7]
  
• In a meeting with Micheline Calmy-Rey in Teheran in March 2008, Iranian President Ahmadinejad called for closer ties with Switzerland: “We are willing to develop economic and energy cooperation with Switzerland,” he said. [8]

Economic Relations

• According to the Swiss Foreign Ministry, Iran is one of Switzerland's most important trading partners in the Middle East. [9]
  
• Switzerland is a country with few energy resources of its own and has proposed that Europe should diversify its energy imports away from Russia and toward other exporters like Iran. [10]
  
• Swiss Foreign Minister Calmy-Rey’s trip to Iran in March 2008 coincided with the signing of a twenty-five year contract between representatives of the Swiss power company Elektrizitaetsgesellschaft Laufenburg (EGL) and the National Iranian Gas Export Company (NIGEC) [11] to bring natural gas from Iran to Europe. The deal secured the delivery of 5.5 billion cubic meters of gas per year to Europe through a pipeline scheduled for completion in 2010. The Swiss energy group said the value of the deal was over 10 billion Euros (13.32 billion USD). [12] Calmy-Rey said that the contract is in line with Switzerland's rights as an independent country with its own strategic interests to defend. EGL stated that gas deliveries from Iran would begin in 2009. [13]
  
• Calmy-Rey signed the agreement with her Iranian counterpart Manouchehr Mottaki in Tehran. "I congratulate this Swiss company for being so far-sighted. We hope this will be a new chapter for long-term economic cooperation between Iran and Switzerland," said Mottaki. [14] He also said that his talks with his Swiss counterpart were "useful" in various areas. "We talked about mutual economic cooperation, continuation of political relations, and maintaining the consultations." [15] A Swiss delegation visited Tehran again in August 2008 to continue negotiations with Iranian officials on technical issues related to gas exports. [16]
  
• Israel lodged a complaint with Switzerland over the Swiss-Iranian natural gas purchase, calling the deal inconsistent with U.S.-led efforts to curb Tehran's nuclear programme through economic isolation. "Switzerland and the entire international community are aware of the danger posed by Iran. Israel expects Switzerland to join the international effort in this matter," the Israeli Foreign Ministry statement said. [17] The United States criticized the agreement as well: The deal "sends the wrong message to Iran at a moment when Iran continues to defy United Nations Security Council resolutions" on the country's nuclear program, the U.S. embassy in Bern said in a statement. The U.S. embassy added that the accord "violated the spirit of the sanctions." [18]
  
• There are also long-standing agreements between the Switzerland and Iran on air traffic (1954, 1972 and 2004), road and rail transport (1977), export risk guarantees (1966), protection of investments (1998) and double taxation (2002). [19]
  
• However, Switzerland has reduced its economic cooperation with Iran since the UN Security Council took up Iran’s nuclear enrichment programme in 2005 and several Swiss banks have frozen the financial assets of those involved in the Iranian nuclear program. [20]
  

References:

[1] Geiser, Urs: "Swiss express concern over situation in Iran," Swiss Info, June 24, 2009, http://www.swissinfo.ch/eng/news_digest/Swiss_express_concern_over_situation_in_Iran.html?siteSect=104&sid=10867027&cKey=1245912604000&ty=st

[2] "Iranian Ambassador Summoned," Swiss Info, July 1, 2009, http://www.swissinfo.ch/eng/news_digest/Iranian_ambassador_summoned.html?siteSect=104&sid=10901485&cKey=1246443677000&ty=nd

[3] "Calmy-Rey regrets Israeli non-invitation," Swiss Info, May 4, 2008, http://www.swissinfo.ch/eng/front/Calmy_Rey_regrets_Israeli_non_invitation.html?siteSect=106&sid=9048615&cKey=1209920094000&ty=st&sb=red

[4] "Swiss FM defends Hamas meeting," AFP, July 19, 2009, http://news.yahoo.com/s/afp/20090719/wl_mideast_afp/mideastpalestinianswitzerlandhamas

[5] "Nuclear solution tops agenda in Iran talks," Swiss Info, October 15, 2009, http://www.swissinfo.ch/eng/front/Nuclear_solution_tops_agenda_in_Iran_talks.html?siteSect=105&sid=9848425&cKey=1224057703000&ty=st&rs=yes

[6] Ibid.

[7] Bussard, Stéphane, "Ahmadinejad utilise Merz pour sa réélection," Le Temps, May 5, 2009, http://www.letemps.ch/Page/Uuid/f547e53a-38ee-11de-8818-afca1ae4b673/Ahmadinejad_utilise_Merz_pour_sa_r%C3%A9%C3%A9lection

[8] "President: Iran keen on developing ties with Switzerland," Irna, March 17, 2008, http://www2.irna.ir/en/news/view/line-17/0803171587192805.htm

[9] Swiss Foreign Ministry, "Bilateral relations between Switzerland and Iran," Federal Department of Foreign Affairs, December 28, 2006, http://www.eda.admin.ch/eda/en/home/reps/asia/virn/bilirn.html

[10] "Iran, Switzerland sign gas export deal," Agence France Presse, March 17, 2008, http://news.yahoo.com/s/afp/20080317/wl_mideast_afp/iranswitzerlandenergygas_080317132937

[11] "Gasgeschäft mit Iran unterzeichnet," Neue Zürcher Zeitung, March 18, 2008, http://www.nzz.ch/nachrichten/schweiz/gasgeschaeft_mit_iran_unterzeichnet_1.691317.html

[12] "Iran and Swiss firm sign gas purchase deal," Reuters, March 17, 2008, http://www.reuters.com/article/innovationNews/idUSDAH73468720080317

[13] "US demands to see Swiss-Iran gas contract," Associated Press, March 30, 2008, http://www.iht.com/articles/ap/2008/03/30/europe/EU-GEN-Switzerland-Iran-Deal.php