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22 J.L. Pol'y & Globalization 65 (2014)
Economic Law Aspects of the Japan-Iran Relations (Past, Present and the Future); Dealings without Making Friendship

handle is hein.journals/jawpglob22 and id is 65 raw text is: Journal of Law, Policy and Globalization wwwiste.org ISSN 2224-3240 (Paper) ISSN 2224-3259 (Online) t Vol.22, 2014 II E Economic Law aspects of the Japan - Iran Relations (Past, Present and the Future); Dealings without Making Friendship Ahad Gholizadeh Manghutay Department of Law, University of Isfahan, Isfahan 81746, Iran E-mail of the corresponding author:gholizadeh 4ase.ui.ac.ir Abstract This article studies the economic law aspects of the Japan - Iran relations and reaches to the conclusion that the line between Japan and Iran is a two way road taking consumer products, projects requirements, loans and technical assistance from Japan to Iran and returning oil and gas from Iran. This line, although established out of the both parties urgent need, was never elaborated or improved to shape up an equal and just relationship and its existence and stable operation was never supported by conclusion of a long term treaty and with sanctions it is now extremely narrowed. Keywords: Japan - Iran - Trade relations - Azadegan - South Pars - Loans - Sanctions - Technical assistance 1. Introduction This is a theoretical study which follows an analytical approach. For the purpose, the two countries pertinent endeavors for accomplishing projects, making exports, giving loans and providing technical assistance have been with due regard to sanctions imposed against Iran studied. As early as the Constitutional Revolution in 1906, Iranians looked towards Japan as a model for successful development without European assistance (Cohen, 2002). But, in practice Iran disregarding the Japans economic policy adopted for its developmentat first the western models and in recent decades the former eastern bloc models, namely expansion of the state and quasi-state sector to the most possible extent. Initially Japanese firms inter alia entered Iran after the oil industry nationalization in 1952 under piece meal contracts for extraction and exploration of oil but soon after 1979 Revolution, they inter alia were due to Iran's deteriorated relations with International Oil Companies (IOC's), as well integrated into customer baseof the National Iranian Oil Company (NIOC) (Brumberg & Ahram, 2007, p. 18). In the 1990s deep suspicion about US intentions prompted the Iranian authorities to adopt a policy of the West without America, focusing on Europe and Japan (Leverett & Leverett, 2010, p.75). But, the 1993 dual containment policy of US administration began persuading Europe and Japan to limit their involvement in Iran (Hassani & Nojoomi, 2010, p.34). So, Iranian strategy changed into expanding relations with the Russia, China and India. But with emergence of China as a solution for every need, all other strategies lost their importance. 2. Trade relations In 2000, Japan eagerly dependent on oil imports as the world's third-largest oil importer, after China and the US (Muriel, 2000, p.49) was importing 17% of its oil requirements (637,000 barrels of oil per day) from Iran (Japan's import: 2000; and Iran-Japan: 2005) as its third largest oil supplier (Japan to: 2000; Japan, Iran: 2000; Iran: 2004; Iran, third: 2005; Iran professor: 2003). In 2002, Iran's traditional exports to Japan amounted to about $40 m per annum consisting mainly of commodities such as carpets, pistachios and dried fruits. (Iran pistachio: 2002) In fact there was no balance in trade between Iran and Japan if the oil exports were not accounted for. Even at present that Japan is set aside by the China, many Japanese products are lawfully or by smugglers, imported to Iran. In 2004 Japans imports from Iran stood at $8.606 b (Shariatmadari: 2005) while its exports reached to $1.164 b (Shariatmadari: 2005) mainly including spare parts, steel, rolled steel, silicon steel, artificial fabrics, propylene, and steam turbine parts. Switchboards and other equipment as well in 2000 were exported by NEC Corp and Sumitomo Corp to an Iranian state-owned telecommunications firm (Japan MITI: 2000). In 2005 Japan as the third largest importer of Iran's industrial and mineral products (MENA Business Reports, 2005); mainly consisting of petrochemicals. (Japan agrees: 2001) reduced its oil imports from Iran to 13% (Shaoul, 2006). In 2006, Japan was Iran's second largest trade partner after China; their trade volume exchange exceeding $12 billion. Crude oil accounted for approximately 96% of Japan's total imports from Iran (MOFA, 2009) making Iran the third biggest exporter of crude to Japan (Farzin, 2008, p. 174). In 2008, Japan's oil imports from Iran reduced to 11.8% (MOFA, 2009) but due to oil price hike, their trade value increased to approximately $20.15 b, with $1.91 b of exports to Iran, and $18.24 b of imports to Japan (MOFA, 2009). As of October 2008, there were 711 Japanese nationals residing and 33 Japanese corporations (mainly trading companies) operating in Iran (MOFA, 2009). Iran besides oil supply is a very important country for Japan because as of 2008, more than 85% of its crude oil

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