The peculiarities of JCPOA

Adoption

October 18, 2015 marks “Adoption Day” under the JCPOA – the day on which the JCPOA becomes effective and participants begin to make the necessary preparations for implementation of their JCPOA commitments. In connection with Adoption Day, on October 18, 2015, the United States President issued a memorandum directing his administration to take all appropriate preparatory measures to ensure the prompt and effective implementation of the U.S. commitments set forth in the JCPOA upon Iran’s fulfillment of the requisite conditions. In particular, the US President directed the agencies to take steps to give effect to the U.S. commitments with respect to sanctions described in the JCPOA. In addition, on October 18, 2015, the Secretary of State issued contingent waivers of certain statutory sanctions provisions. These waivers were not currently in effect and will only take effect on Implementation Day. Thus, the US was signaling Iran that the country was ready to do more than whatw as required to implement the JCPOA.

Next Steps

JCPOA ‘s Annex V - Implementation Plan1 which describes the sequence of the actions specified in the agreement clearly states in section A. Finalization Day (2-4) that Iran and the IAEA will start “developing necessary arrangements to implement all transparency measures provided for in this JCPOA so that such arrangements are completed, in place, and ready for implementation. Meanwhile, in accordance with the UN Security Council resolution endorsing this JCPOA, the provisions imposed in UN Security Council resolutions 1696 (2006), 1737 (2006), 1747 (2007), 1803 (2008), 1835 (2008), 1929 (2010) and 2224 (2015) will be “terminated subject to re-imposition in the event of significant nonperformance by Iran of JCPOA commitments, and specific restrictions, including restrictions regarding the transfer of proliferation sensitive goods will apply”.

Thus, the onus of compliance was primarily on Iran and any failure would result in the re-imposition of the sanctions regoime under the UN. Thus, all concessions given to Iran were conditional on very strict compliance of the JCPOA.

The Role of the International Atomic Energy Agency (IAEA)

The IAEA, United Nations nuclear watchdog, had a crucial role in the implementation of the JCPOA. Theew was also separate "roadmap" agreement between Iran and the IAEA, undr which the agency would have to investigate the military dimensions of Iran's program, issue a report, and then close Iran's decade-old file within before the deal could come into effect. For sanctions on Iran to be lifted, the IAEA must first verify that e Iran had honored all its commitments under the July deal, including dismantling large numbers of its centrifuges for uranium enrichment and filling parts of its Arak nuclear site with cement. The closure of the IAEA's nuclear weaponization probe was one of the prerequisites for the implementation of the JCPA.

The IAEA conducted a 12-year long survey on Iran’s nuclear program. Finally, on December 15, 2015 the IAEA closed the book on the possible military aspects of Iran’s nuclear program, finding that they were limited to feasibility and scientific studies and did not proceed beyond 2009, bringing an international nuclear accord with Iran a step closer to implementation. The resolution moved Iran another step closer to large-scale sanctions relief following its deal with world powers this summer. Thus, Iran had cleared one of the nuclear deal's most important hurdles. Iran had yet to complete other provisions for implementing the deal, including removing the core of its plutonium reactor, scrapping much of its nuclear-fuel stockpile and removing thousands of centrifuges from its nuclear facilities. Iranian and U.S. officials have said that could be accomplished as early as January—one month ahead of parliamentary elections in Iran.

On December 15, 2015, IAEA Director-General Yukiya Amano confirmed that Iran was moving quickly to meet its commitments. Iran hoped to put the restrictions in place within two to three weeks. The restrictions Iran must put in place include drastically reducing the number of centrifuges installed at its underground enrichment sites, removing the core vessel of a reactor at Arak and shrinking its stockpile of enriched uranium.

Next Steps

The IAEA must verify that Iran has put the required nuclear restrictions in place for sanctions to be lifted. Iran had been racing to keep its side of the JCPOA deal. The next step was for Iran to complete the necessary preparatory steps to start implementing the JCPOA. On receipt of an IAEA report verifying that Iran had taken all actions specified in the JCPOA, the agency would then terminate the relevant resolutions it had previously passed in connection with Iran’s nuclear program. This will allow Iran to participate in all IAEA technical cooperation activities, for instance.[1] Meanwhile, Iran's president, Hassan Rouhani, said on December 16, 2015 that Iran would carry out its remaining obligations and would now dismantle some nuclear centrifuges and ship out a major portion of its stockpile of enriched uranium.

Implementation Day

The Implementation Day is a major landmark in the JCPOA and will occur only once the IAEA verifies that Iran has implemented key nuclear-related measures specified in the agreement. Several preparatory steps have to be completed by Iran. This will be a major landmark, if and when it occurrs.

The Future of the JCPOA

The United States has taken a step toward lifting at least some sanctions against Iran, with U.S. Secretary of State John Kerry telling the Senate Foreign Relations Committee that Tehran is fulfilling its obligations in a “transparent” and “verifiable” way under an international agreement on its nuclear program. Kerry made the remarks on December 16, 2015. The Obama administration estimated it would not be until spring that Iran would be in compliance with the terms required for sanctions relief to begin. The sanctions, if and when, lifted would give Iran access to billions in frozen assets and oil revenue. Thus, the United States appeared poised to lift at least some sanctions against Iran -- possibly as early as January 2016.

It took a great effort on the part of the US and Iran to reach this agreement. Iran made concessions in order to get rid of the sanctions regime which was crippling its economy. The people of Iran also wanted to end this confrontation with the West. The adoption of the resolution had become the breakthrough in relations between IAEA and Iran. Although, the IAEA’s report strongly suggesting Iran had engaged in activities aimed at developing a nuclear bomb up until 2003 and that there was no credible sign of weapons-related work beyond 2009. Despite the finding, the international response to the report had been “muted”, indicating a desire to go ahead with an agreement that “allayed fears of a wider Middle East war over Iran's nuclear ambitions, rather than dwell on its past actions”.

Under the JCPOA Iran pledged never under any circumstances to seek, develop or acquire nuclear weapons, and the UN Security Council is to consider ending sanctions imposed for its NPT violations once it receives IAEA’s report on verification. Once the deal was implemented, most U.S., U.N. and European Union economic and financial sanctions would be suspended, including Europe’s embargo on Iranian energy. However, an arms ban will remain in replace as well as sanctions on dozens of people and companies associated with Iran’s nuclear program. Iran will also have to seek permission to import so-called dual-use goods, which could be used in an illicit nuclear program. Other U.S. sanctions related to human-rights abuses and support for terror groups, including a “near-comprehensive embargo” on U.S. trade with Iran, will remain in place.

Much work lies ahead to reach this agreement and a further sustained effort will be required to implement it. It isn’t gong o be easy at all. With the lifting of sanctions, Iran was poised to add a half million barrels a day to the saturated world oil supply by mid-2016, once the sanctions relief goes into effect, said Sara Vakhshouri, a senior energy fellow at the Atlantic Council think tank in Washington. Positive news on Iran’s nuclear agreement with world powers "could have a psychological downward impact on the global oil prices,” Vakhshouri said. “This could happen even before Iran increases its export volumes”. Notwithstanding he criticisms, the JCPOA has the potential to provide stability, security and economic prosperity to Iran and thereby help stabilize a volatile region.