France’s association of businesses (MEDEF) appears to have stirred up one huge hornet’s nest this week with its visit to Iran that included elements believed to be from PSA Peugeot-Citroen and Renault.
The trip to Tehran appears to have largely gone under the radar until the 100-strong delegation was actually in situ and then the cat was really out of the bag.
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Western powers imposed a series of crippling sanctions on Iran in an attempt to dissuade Tehran from what they see is its ambition to enrich uranium for nuclear weapons, but recent breakthrough talks in Geneva saw limited progress on trade barriers that some have speculated could lead to the auto industry benefiting by up to US$500m.
Both Renault and PSA have maintained ties with Iran and a recent automotive conference in the Iranian capital, also saw a significant delegation from French suppliers association, FIEV, led by its vice president, Arnaud de David-Beauregard, attend with 16 companies from the body.
That slight thaw in Geneva appears to have galvanised French interest in particular, although former British Foreign Secretary, Jack Straw, as co-chairman of the UK all-party group on Iran, was also recently a guest of the Iranian Parliament on a parliamentary delegation.
However, all this activity and the MEDEF visit in particular this week, appears to have irritated the US State Department, which apparently drew attention to a still-existing sanctions regime, despite its recent softening.
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By GlobalDataBut Paris is not about to be pushed around by Washington it seems with comments from French Foreign Minister, Laurent Fabius’ spokesman sent to me noting: “It’s [Tehran visit] is an exploratory MEDEF initiative in a strict legal framework – that is to do with the intermediate agreement reached with Iran – which temporarily suspends certain sanctions.”
Fabius’ spokesman certainly doesn’t condemn the delegation and with Renault and PSA having close historical ties with automakers, Iran Khodro and Sapia, both main French vehicle manufacturers and their legion of component producers, are anxious to see a normalisation of relations.
That is largely out of their hands of course and there is an awful lot of water to pass under the bridge first – not the least of which is a resolution of banking restrictions – before French auto companies can beat a collective path to Tehran’s door.
Despite that apparent green light to MEDEF the Foreign Minister’s spokesman added for good measure – and perhaps as an olive branch to Washington – that: “The Minister recalls the priority that we give that Iran takes all necessary measures to renounce in a clear and definitive manner, any nuclear arms perspective.
“He [Fabius] also met [the] director general of the International Atomic Energy Agency to confirm the role of that agency in the agreement verification with Iran, in particular to avoid any military dimension.”
PSA board member, Frederic Saint-Geours, was part of the delegation, although the automaker was at some pains to insist he was there in his role as president of the French metallurgy industries association (UIMM)
Saint-Geours appears to have something of a plenipotentiary role in PSA at the moment – he is “directly related” to CEO Philippe Varin, but is on a “special mission at the moment” a PSA spokeswoman told me from Paris.
“He is president of the UIMM – it was with this role he was with Iran, but not as a PSA director,” added the PSA spokeswoman.
But despite those finely honed nuances, it’s surely inconceivable isn’t it Saint-Geours would not have a chat, even a discreet one about the machinations of this week’s seemingly cloak and dagger visit, with his boss, seemingly still very much in place, at least until the results on 19 February.
I know a few places in Paris – and I’m sure they do – where they could melt into the background and quietly discuss what – admittedly – is an uber-sensitive subject but one which has the potential to unlock huge business opportunities.
I normally receive an email towards the end of the day from US lobby group, United Against Nuclear Iran and I can only guess they’re fulminating against this week’s French trip, so I’ll wait with interest for this evening’s missive.
Maybe the State Department feels it has to play to the domestic audience, but there seem no such deep-seated qualms this side of the pond.
I have the feeling France has actually adopted quite a hawkish stance towards Iran in the so-called P5+1 group, the UK, US, France, Germany, Russia, China and the European Union, but any thawing in hitherto glacial relations with Tehran, albeit laced with caveats, can only be a good thing can’t it for the auto industry?
No-one’s being naive – there’s a mountain to climb before relations resume their previous rosy hue – but you have to start somewhere.
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