Tuesday, January 29, 2008

Iran might reduce economic ties with France

Two Iranian parliamentary committees discussed reducing economic ties with France on Monday in reprisal for President Nicolas Sarkozy's "unfriendly" policies in Iran's nuclear standoff.

We discussed moving towards reducing economic ties with France especially in the auto industry," the head of the national security and foreign affairs committee, Alaeddin Borujerdi, said.

Since Sarkozy's election, France has considerably toughened its position towards Iran and has called for the Security Council to impose a third set of sanctions to punish Iran for its failure to heed ultimatums to suspend uranium enrichment.
In September, Iranian President Mahmoud Ahmadinejad warned that France's new tougher position could hit economic relations.
French cars have a prominent presence in Iran's closely protected auto market, and models such as the Peugeot 405 and 206 have been manufactured under licence by Iran Khodro, Iran's largest car manufacturer.

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This could affect many people in the society of Iran because of the relationship with France. Even though it is just cars, soon Iran could pull from France in other major provisions or even pull away all together.

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