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Fall 2017 JPI

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Secretary Jacob Lew stated that Iran's economy had been “squeezed between 15 to 20 percent under<br />

which cost the country about $160 billion in oil revenue alone.” 16 In addition, “more than $100 billion<br />

in Iranian assets were held in restricted accounts outside the country.” 17 There was also continued<br />

political instability in the country due to protests and crisis marked by the last presidential election.<br />

Iran’s national interest was to be a regional hegemon. Therefore, it was important for Iran to reestablish<br />

economic and trade capabilities. Oil was an important natural resource for the country’s<br />

economy and due to the embargo, a big budgetary problem. Iranian oil export revenues fell by 26<br />

billion dollars year-over-year in 2012 to just 69 billion dollars. 18 It was a major blow to the country’s<br />

industry, with oil having accounted for about 80% of total export earnings. 19<br />

Based on Iran’s present economic situation, it could be assumed that the country did not have<br />

many options at the time of the negotiations. The country had changed and did not have the same<br />

ability to continue economic development as before. Iran needed immediate help, and the nuclear deal<br />

could open doors for this development. Some of the main gains and obligations for Iran in JCPOA<br />

negotiations, based on the White House fact sheet, included: 20<br />

Gains<br />

Removing all UN SC sanctions<br />

Lifting all national and regional sanctions<br />

Maintaining right to continue nuclear research<br />

Obligations<br />

Removing two-thirds of its installed<br />

centrifuges and 98% of its stockpile of<br />

enriched uranium<br />

Not using advanced centrifuges to produce<br />

enriched uranium for the next decade<br />

Developing vigorous, intrusive, and<br />

unprecedented transparency measures<br />

including inspectors having access to Iran’s<br />

key nuclear facilities<br />

Domestic pressure on Iran forced a change in the narrative that embraced the positional style<br />

of bargaining. The considerations of domestic needs in Iran shifted the strategy for negotiators at the<br />

international level.<br />

While Iran had domestic pressures that brought it to the bargaining table, the US also had to<br />

balance its domestic political capital to push the deal forward. The approval of the JCPOA by the US<br />

Congress was not a guarantee given the deep partisanship. The Republican Party opposed the nuclear<br />

deal in the Senate, proposing a resolution to block the deal from coming to fruition. 21 The Democratic<br />

Party did eventually rally enough support to pass the JCPOA, but at the cost of significant political<br />

capital for future democratic agenda. 22 The block of the Republican’s resolution ensured that President<br />

Obama could sign the deal without a process of veto override occurring 23 . The balance in satisfying<br />

domestic-level needs as well as domestic political obstacles further shows the weakness in the<br />

16 Remarks of Secretary Jacob J. Lew at The Washington Institute for Near East Policy 30th Anniversary Gala, April 29 2015.<br />

17 Zachary Laub. Council on Foreign Relations, 15 July 2015. Web. 03 Nov. 2015.<br />

18 Asa Fitch. "Five Basic Facts About the Sanctions on Iran – At A Glance," The Wall Street Journal, 17 June 2015.<br />

19 Ibid.<br />

20 The Iran Nuclear Deal – What you need to know about the JCPOA (www.whitehouse.gov).<br />

21 Jennifer Steinhauer. “Democrats Hand Victory To Obama on Iran Nuclear Deal,” The New York Times, September 10, 2015.<br />

22 Ibid.<br />

23 Ibid.<br />

<strong>JPI</strong> <strong>Fall</strong> <strong>2017</strong>, pg. 8

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