Japan and Iran signed a bilateral investment pact Friday in a bid to give Japanese firms an edge in the global rush for access to the resource-rich nation.
Foreign Minister Fumio Kishida signed the pact with Iran’s visiting Minister of Economic Affairs and Finance Ali Taiebnia during a ceremony at the Foreign Ministry in Tokyo.
Japan is determined not to fall behind its rivals and hopes the pact will eventually lead to greater auto exports and greater participation in the development of Iranian oil fields, Japanese officials said. Earlier Friday, Taiebnia praised the high quality of Japanese technology.
“The country of Japan, which in the eyes of the Iranians has always been associated with high-quality and trustworthy products will have a higher chance to enter Iran’s market and establish long-term partnerships,” he said.
He added, there is “great appetite” in Iran for fuel-efficient, high-quality cars and motorcycles, renewable energy and improvements in agricultural processing.
With the lifting of the sanctions, Japanese insurance companies will be able to issue policies covering trade deals involving Iran. Japanese businesses will also be able focus on making new investments in Iran’s oil and gas sector.
The lifting of sanctions may also allow Japanese companies to return to a development project in Azadegan, one of the world’s largest oil fields, in Iran’s southwest. Japan had a 75 percent stake in the project but withdrew in 2010.