The Islamic Republic of Iran and the European Union established a Comprehensive Dialogue in 1998 to discuss a wide range of issues and explore possibilities for co-operation.

In 2001, the Commission adopted a Communication setting out the perspectives and conditions for developing closer relations with Iran. One objective was to conclude a Trade and Co-operation Agreement (TCA) and negotiations were launched in December 2002 . The EU is Iran’s main trading partner and such an agreement is the normal channel through which the EU develops its relations with other countries and trading partners. In view of Iran’s aim of becoming a member of the World Trade Organization (WTO), such an agreement would help Iran to adapt to WTO rules. It would boost Iran’s economic development potential, enhancing the climate for trade with, and investment from, Europe and the wider world.

An agreement would also pave the way for closer EU-Iran co-operation in a wide range of sectors, such as science & technology, energy, transport, environment, drugs control, asylum and migration, education and culture, and any other area of shared interest.

Increased cooperation in all these fields should also be matched by enhanced political relations. This is why the EU and Iran began negotiating a Political Dialogue Agreement (PDA) , which addresses issues such as the situation in the Middle East, the non-proliferation of Weapons of Mass Destruction, Human Rights and the fight against terrorism.

Currently, both economic and political talks are on hold. Their resumption depends on progress in resolving the outstanding issues in connection with the Iranian nuclear programme.