Iran-Germany Trade Expected to Fall by 30%
IRAN NEWS ECONOMIC DESK
TEHRAN – Rasul Ranjbaran, a member of the Board of Directors of the Chamber of Commerce of Iran and Germany, says it is predicted the trade between Iran and Germany to fall by 30 percent by the yearend because of sanctions.
In an interview with Eghtesadonline, Ranjbaran said that the total trade volume of Iran and Europe stood at 4.3b euros last year and with the current trend, it is predicted the figure to fall to around 3b euros by the yearend, and this means the trade between Iran and Germany will fall by 30 percent by the yearend (late March).
Touching upon return of forex resulted from exports to the country, he said that currently there is no way for banking transactions and transfer between both states and accordingly, most Iranian exporters have resorted to bartering, and for this reason the return of forex to the national economy is impossible.
He also pointed to the current method of Europeans for trade with Iran, saying that Europeans have recently defined a new financial mechanism, the INSTEX, and through this mechanism, the forex resulted from exports to Europe is to be deposited in a fund in Paris and importers can also continue their trade via this fund.
Ranjbaran further said it is expected that the amount of imports of medical equipment and commodities as well as food from Europe and also exports of Iranian goods to Europe which have been slapped with sanctions would fall due to the current sanctions.
On Europeans and Germans’ interest for expanding trade ties with Iran, he said that currently Germany follows the policies of the U.S. and unfortunately Europeans have not fulfilled their JCPOA obligations. He further said although German economic activists are keen to expand trade with Iran, their trade is directly or indirectly attached to the U.S. policy and they fear trade with Iran because they fear the U.S. fines.
Ranjbaran added that the volume of trade between Europe and the U.S. is over $1000b or euros while Europe’s trade with Iran will stand at around 3b euros by the yearend and these two figures are incomparable. He noted that so Europeans are cautious for trade with Iran.
He also said that trade with Eurasia is a golden opportunity for Iranian economic activists, adding that Iranians should take advantage of it.
Ranjbaran added that Iran can have a major share of Eurasian states’ markets because Iranian goods are good-quality with competitive prices and there is no limit for exports to those countries.
