By: H.E.Ambassador Giuseppe Perrone
Thank you so much for giving Trends this exclusive interview despite your busy schedule, we are very grateful. If you were to summarize the state of affairs between Iran and Italy, in terms of political relations as well as trade activities and cultural exchanges, how would you describe it?
Political and economic relations between Italy and Iran have their roots in centuries of dialogue and fruitful interaction. Italy’s history and geography make it naturally interested to project its influence in the larger Mediterranean region, where Iran plays a pivotal role. From a political, economic and cultural points of view, this synergy has always allowed us to build relations based on mutual understanding and reciprocal respect. Despite the current challenging economic and commercial scenario, Italian companies and financial institutions have continued to play a significant role in Iran. Many of them still continue to operate in Iran and have fulfilling partnerships with Iranian companies, building on a legacy of trust and an extended network of relationships.
Our cultural activities have been flourishing over the last year, notwithstanding the pandemic. We have worked out a hybrid strategy to present Italy and Italian culture to the Iranian public through virtual tools such as video-series, online programs, and live streaming of our events on social media.
As one of Iran’s main traditional industrial and trade partners, Italy has been instrumental in the development of some of the key industries here, including energy, steel, machinery and so on. Please tell us about the history of business between the two countries. Also, what is the trade volume between Iran and Italy today? What products and services are still being exchanged, if any? Do you see any major emerging trends/patterns – for example, expansion of trade beyond activities in traditional sectors such machinery, energy and steel?
Our two countries have a long history of cooperation. Italy has participated heavily in Iran’s industrial development particularly through partnerships for the implementation of big infrastructural projects. Today Italy and Iran continue to have two largely complementary economies. Italy has traditionally provided industrial equipment, technology and know-how to Iranian industries. On the other hand, we are a country largely dependent on the import of oil & gas.
Italian and Iranian businesses find it very advantageous to work with each other in a cooperative manner and they continue to establish successful partnerships. For example, we have recently hosted a two-day virtual business forum on agricultural machinery in cooperation with various business associations of both countries and with the support of several Italian and Iranian Chambers of Commerce, which has been met with overwhelming interest by many companies within the two countries.
Although the bilateral trade volume has recently decreased largely as a result of the impact of US sanctions, I am confident that, as conditions improve, we can rapidly catch up the lost ground and reach or even surpass the bilateral trade volume reached in recent years, which was worth around 5 billion euros, the highest figure in the European Union.
Iran is shifting from oil exports to domestic manufacturing and non-oil exports. Iran also has access to some of the biggest regional markets including Iraq. Would Italian companies consider Iran as a potential manufacturing hub in our region, if and when the sanctions are lifted?
In July 2020, the Italian Embassy hosted a Business Forum entitled “Economic relations between Italy and Iran in the current context: non-oil sectors, SMEs’ role, EU support” in cooperation with the Italian think tank The European House Ambrosetti and the Tehran Chamber of Commerce.
With about 800 participants among Italian and Iranian entrepreneurs and professionals, we discussed the new opportunities arising in both countries and in particular the role Italian companies may play in partnering with Iranian companies, as these redouble their efforts to increase non-oil production and productivity. I think Italian companies can make a very positive and constructive contribution in the process of transition to the non-oil-based economy Iran is aiming for these days. That’s why our companies look with great interest to the possibility of establishing new partnerships in Iran with local companies and continue to consider very seriously Iran’s role as a natural manufacturing hub in the region.
Iran is shifting from oil exports to domestic manufacturing and non-oil exports. Iran also has access to some of the biggest regional markets including Iraq. Would Italian companies consider Iran as a potential manufacturing hub in our region, if and when the sanctions are lifted?
In July 2020, the Italian Embassy hosted a Business Forum entitled “Economic relations between Italy and Iran in the current context: non-oil sectors, SMEs’ role, EU support” in cooperation with the Italian think tank The European House Ambrosetti and the Tehran Chamber of Commerce.
With about 800 participants among Italian and Iranian entrepreneurs and professionals, we discussed the new opportunities arising in both countries and in particular the role Italian companies may play in partnering with Iranian companies, as these redouble their efforts to increase non-oil production and productivity. I think Italian companies can make a very positive and constructive contribution in the process of transition to the non-oil-based economy Iran is aiming for these days. That’s why our companies look with great interest to the possibility of establishing new partnerships in Iran with local companies and continue to consider very seriously Iran’s role as a natural manufacturing hub in the region.
The sanctions have had a negative impact on many of the Iranian companies. Have they also affected Italian companies dealing with Iran? What do you see as post-sanctions opportunities and challenges between the two countries in terms of industrial cooperation and trade?
Sanctions have had an important effect also on our companies, in many instances severely affecting their dealings with their Iranian counterparts. We look forward to our trade and investment ties reaching their full potential once the sanctions are lifted, with the recognition that these ties are extremely beneficial for both countries and that they are based on a long history based on transformative projects and successful partnerships between Italy and Iran.
Italy is home to some of the world’s most iconic brands from Ferrari and Vespa to Gucci and Armani, and industrial power houses such as Daniele and ENI. What do you see as the main success factors for the “Made in Italy” brands? Is it creativity, design, business culture…?
Creativity is the main engine boosting our companies in world markets. In this respect, the Italian design has become their factory trademark, which incorporates an aesthetics made of lifestyle and taste for living. I think Italian businessmen understand that products are successful to the extent they are attractive and capable of stirring people’s imagination. That’s why people around the world associate Italian products with quality, attractiveness, and style.
The theme of this edition of Trends is Smart Cities – smart communications, transportation, tourism, vehicles, homes and offices…? Are there any major initiatives going on in Italy in that regard and if so, which city or cities are leading it?
The Italian Government is committed to leading the transition towards smart cities and in general, a more sustainable and environmentally friendly way of living. “Smarter Italy” program was launched in 2019 by the Italian Ministry of Economic Development and its aim is to make 11 Italian cities and 12 smaller towns pilot cases for a major change in the approach to our social life. Smart mobility, protection of the environment, and the preservation and enhancement of our cultural heritage are the main factors driving this change. Another major effort in this field is also our co-hosting of the 26th session of the Conference of the Parties (COP 26) of the United Nations Framework Convention on Climate Change. Among other events related to the Conference, Italy will host a very important program on September 28-30, 2021 in Milan under the title – “Youth4Climate: Driving Ambition”. We will give younger generations from all over the globe voice, prominence and visibility during both the Milan PreCOP26 (September 30 – October 2) and the COP26 which will take place in Glasgow on November 1-12, 2021.
Italy, like Iran, was one of the first and main global epicenters of Covid-19 outbreak. What have been some of the lessons learnt in Italy from the pandemic? Is there currently any cooperation between the two countries on that front? How can we leverage each other’s experiences and face future pandemics?
Our two countries were among the very first ones to be hit by the Covid-19 pandemic and have both paid a very heavy toll in human life. I think it’s very important to understand that in order to be able to effectively deal with a pandemic of this magnitude a truly worldwide effort is needed. We are all interconnected. If one country fails in this fight, all of us will fail.
Pandemics take advantage of a globalized world. It is time to expand our research beyond national territories and make our resources and findings in the medical field more interconnected, share best practices and plan together for global responses against these common threats.
I should mention an important initiative, among the many we have promoted in this field, which has had a very broad impact. It’s an experimental theater series jointly produced by an Iranian and an Italian company, exploring the impact of COVID-19 on our lives with a very simple message: this pandemic affects us all much in the same way, we are all vulnerable to it and we’re all bound together in the fight against it.
The Italian Embassy is one of the most active missions when it comes to cultural activities. Please tell us about the highlights of such activities in 2020. Are there any more planned for 2021, and if so, what would be some examples of what we can expect?
Yes, we were very active last year, notwithstanding the extremely challenging environment imposed by Covid-19, as we believe that Culture and Art are crucial tools not only to express creativity and imagination, but also to give hope and relief to humankind at times of hardship. Among all initiatives, aside from the theatre series I mentioned above, we also have two new and very successful video-series we launched in order to highlight the deep cultural bonds existing between our two countries.
One in the field of architecture and design with the title “Domus Eyes on Iran”, explores the many stories focusing on Iran covered by Domus magazine over the past 70 years.
Another one, by the title “From Tehran to Rome. A Journey through Art”, deals with the world of fine arts. It features seven major Italian and Iranian artists whose background and training have been shaped in both countries and who best represent the cultural bridge which unites us.
