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[shinobi602]

Thought this deserved a separate discussion. With a population of almost 80 million that's been virtually untapped by the Western world for decades, it's going to be fascinating to watch how it unfolds.

LONDON—Tuesday’s deal between the West and Iran paves the way for fresh foreign investment and the reopening of a big consumer market-in particular, for U.S. companies all but barred from the country for decades.

Amid a diplomatic détente that started in earnest last year, big American firms have already been gearing up to explore the market potential. Apple Inc. and General Electric Co. both have been in touch with potential Iranian distributors, according to people familiar with the matter. Boeing Co. started selling aircraft manuals and charts to an Iranian airline last year, its first Iranian sales in more than three decades.

A Boeing spokesman said the company “will await further developments on how this agreement will affect” the company. Representatives for GE and Apple weren’t immediately available.

Executives in Europe are already relatively far along in their own re-engagement with former Iranian business partners and with the government in Tehran. With that head start, European exporters are likely to be the first to benefit once a deal is implemented.

“In my experience, Iranians value loyalty,” said Nigel Kushner, chief executive of W Legal Ltd., who advises companies on sanctions. “Those western companies who retained a close relationship during the sanctions regime will likely be the first to reap the benefits.”

German industry group BDI welcomes the agreement with Iran, predicting German exports to Iran to rise to more than €10 billion ($11.3 billion) in the medium term, from €2.4 billion last year. Machinery and plant makers could sell equipment to Iran’s oil industry, said BDI President Ulrich Grillo.

“Car manufacturing, the chemical industry, healthcare and the expansion of renewable energy also offer the German industry many opportunities,” he said.

Last month, Shell Chief Executive Ben van Beurden met with Iranian Oil Minister Bijan Zanganeh in Vienna before flying a team of officials out to Tehran to discuss potential areas of business cooperation should sanctions be lifted, the company said.

“We are engaging with relevant governments to understand the immediate and long term impact of the latest agreement on the sanction regime,” a Shell spokesperson said Tuesday. BP declined to comment Tuesday on the deal. By allowing U.S. companies into Iran, the deal could heighten competition in the oil patch. Exxon Mobil Corp. hoped to move into Iran in the late 1990s before the U.S. government quashed the deal. A spokesman wasn’t immediately available for comment.

Tuesday’s deal sets up Boeing to benefit from Iran’s ageing commercial aviation fleet. That establishes a fresh market in which to compete with Airbus Group SE, which has also been stymied in selling into Iran. Last month in Paris, Iran’s transport minister said the country’s aviation industry was in the market to replace as many as 400 jets over the next 10 years, at a cost of at least $20 billion.

The deal also eventually unlocks more than $100 billion of frozen Iranian assets, which have been locked in foreign bank accounts, boosting Iranian buying power. Exporters, consumer-goods manufacturers and pharmaceutical companies are already selling into Iran, with current sanctions allowing some humanitarian trade.

Via the Wall Street Journal

 

[Casimir]

It will be interesting to see how this plays out in congress, considering that conservatives are both the bastions of hawkish xenophobia and pro-business policies. I think the potential deals for Boeing/Airbus alone is estimated at around 80-90 Billion. I don't see Boeing taking a passive role and hoping the conservative aspects of congress vote favorably.

On a side note, in terms of their newest 777/787s Boeing's capacity is already contracted for the next few years, so Iran will have to wait a bit to upgrade their fleets to the most modern jets. They'll probably end up leasing or outright buying some versions of the 747 or possibly making a deal with Airbus.

 

[razgriz417]

It will be interesting to see how this plays out in congress, considering that conservatives are both the bastions of hawkish xenophobia and pro-business policies. I think the potential deals for Boeing/Airbus alone is estimated at around 80-90 Billion. I don't see Boeing taking a passive role and hoping the conservative aspects of congress vote favorably.

On a side note, in terms of their newest 777/787s Boeing's capacity is already contracted for the next few years, so Iran will have to wait a bit to upgrade their fleets to the most modern jets. They'll probably end up leasing or outright buying some versions of the 747 or possibly making a deal with Airbus.

My bet is most conservatives will side with businesses. Money wins, money always wins

 

[Crisco]

The GOP is fucked, good luck mounting a successful opposition to $2 dollar gas.

 

[Beelzebufo]

So could this make plane ticket prices go down? I want a vacation.

 

[The Llama]

Only a matter of hours until the Republicans switch to supporting this deal then.

 

[geardo]

Only a matter of hours until the Republicans switch to supporting this deal then.

Exactly, they'll cave in soon enough. The only reason they have been against it is because of AIPAC.

 

[Kenshin001]

Apple Inc. and General Electric Co. both have been in touch with potential Iranian distributors, according to people familiar with the matter. Boeing Co. started selling aircraft manuals and charts to an Iranian airline last year, its first Iranian sales in more than three decades.

Apple products with components developed in Israel and products made by an American company that supplies 14,000 JDAMs to Israel. How ironic.