shanta's report helps clarify everyone's thinking. >> thank you so much, uri, and shanta. let me start with a simple question that probably doesn't have a simple answer, but that is if iran's oil production and exports are projected to double at a time when the price of oil has been cut by more than half, could we look back a few years from now and say, actually, this opening up be more iran was a -- up for iran was negative, that actually their gdp was higher when they were sanctioned? >> not in the case of iran, because i think the -- if you think about it, iran is still, currently, an oil-dependent economy. so if you like, the comparative advantage was oil. and that was the one thing they couldn't produce or they weren't able to export much. so even if the price of oil falls, it's not going to fall so far that iran will suddenly discover its comparative advantage is something else. so this will be, there will be a gain. now, the magnitude of those benefits will be lower, lower the price of oil. that's the point that uri was making, les no question about that. but i thin

shanta mentioned the windfall. i think it will not allow significant depreciation of the official rate. what happened is that the black market rate will appreciate and you will eliminate the spread between the two rates. any appreciation of the exchange rate which we very small, only 10%, the black market could be offset with further structural reform. the rouhani government will go ahead with the reforms in an environment where the sections are lifted. -- sanctions are lifted. host: thank you. those are some good questions. what are the sectors that are less sensitive than to try to reform economically? shantayanan: i was hoping you would answer. [laughter] shantayanan: it is really a combination of which sectors are -- where there is a economically compelling case for reform. and there is a political window. i don't know about sectors but certainly the whole area of subsidies seems to be a high priority on both sides. there was a political imperative to do something about subsidies because it is draining the fisc

shanta mentioned the windfall. i think it will not allow significant depreciation of the official rate. -- appreciation what happened is that the black market rate will appreciate and you will eliminate the spread between the two rates. any appreciation of the exchange rate which will be very small, only 10%, the black market could be offset with further structural reform. the rouhani government will go ahead with the reforms in an environment where the sections are lifted. sadjadpour: some good questions. what are the sectors that are less sensitive for them to try to reform economically? devarajan: i was hoping you would answer. [laughter] devarajan: it is really a combination of which sectors are -- where there is a economically compelling case for reform. and there is a political window. i don't know about sectors but certainly the whole area of subsidies seems to be a high priority on both sides. there was a political imperative to do something about subsidies because it is draining the fiscal balance enormous

. >> shanta, on the gravity model results china was not in their. -- there. an implication of the time had cut trading with iran. >> thank you. and there was a lady here. >> from a commercial perspective, once implementation passes, there will be a whole lot of trade i can go on for non-american companies versus american companies. to five years,ee how do you see the agreement affecting u.s. companies overall? i know that's a pretty big question but i just wondered if you could opine on that. since we will be at a disadvantage initially. >> this is one of my worries, not just because of the mechanics of the deal, but because of the animosity. not to put it subtly. because of the animosity, particularly towards the united states and the distrust. on the other hand, the united states has a lot of assets in its corporate sector. that is why it is the richest country in the world. it has a lot of technology, a lot of stuff that iran needs. it also has companies with in aous financial clout number of other sectors. i think the united states is at a disadvantage. i

. >> shanta, on the gravity model results china was not in their. -- there. [indiscernible] iran -- [indiscernible] >> that's exactly right. thank you. there was a lady here in the center. this will be a final question. >> thank you. judith barnett from a commercial perspective, once the implementation date passes there will be a whole lot of trade with a companies versus american companies. in the next three to five years, assuming this works out as well as can be expected, how do you see the agreement affecting u.s. companies overall? i know it is a pretty good -- big question but just wondered if you could comment on that. >> very good. thank you. yes. this is one of my worries. , to putof the animosity it bluntly. because of the animosity towards the united states that we have discussed. on the other hand, the united has a lot of stuff in its corporate sector. that is what is the richest country in the world. , ahas a lot of technology lot of stuff that iran needs. it has companies with enormous financial clout in a number of other sectors. and so i think