TEHRAN (Iran News) – Head of Iran-Sweden Chamber of Commerce and Industries (ISCCI) believes beside banking sanctions, Iran’s domestic economic problems play the most roles in the halt of exports and foreign investment, and regarding the trade with Sweden after the probable lifting of sanctions, he called for more attention on restoring trade relations with small and medium-sized enterprises of Sweden.

Speaking to ICCIMA website Abdolreza Rezaei Honjani, he blamed domestic economic woes as the major factor for slowing down or halts foreign investments and exports. He also emphasized the approach of Swedish companies for improving the cooperation process for investment and called the joint cooperation with this country in case of removing sanctions to be very important and effective.

He then pointed to the cooperation between Iran and Sweden which started some 70 years ago with the arrival of the first models of Volvo trucks in Iran and added the first economic relation between Iran and Sweden was set by importing heavy trucks of Swedish company Volvo and it gradually expanded to other fields and industries like mineral industries.

Rezaei pointed to the Swedish presence in Sarcheshmeh and Golgohar mines projects as an example for the joint cooperation between the two countries and then pointed to other fields of cooperation between the two countries like reinforcing telecommunication waves, building a power plant, and packing industries in the field of dairy production.

He stated that the economic cooperation between Iran and Sweden has always been defined on joint investment and exports of different types of capital goods like technical know-how and industrial pieces of machinery, and they have been less focused on the export of consumer goods.

Rezaei reiterated the Swedish have entered Iran’s market in a way that as well as improving the occupation in the country, they transfer the needed technology and improve the level of quality of production; therefore cooperation and relation with this country has been important for Iran.

He admitted that Swedish companies do not seek risks in their business and since Sweden’s trade with Iran accounts for only 0.5 % of Sweden’s total exports, the companies despite an eagerness to continue cooperation avoid it due to the sanctions, and for this reason, the trade relation between Tehran and Stockholm has declined after the sanctions.

Rezaei also pointed to the cooperation of big Swedish companies with Iranian state companies, adding that since the past, relations between both countries have been focused on auto-making and mining industries and they have paid less heed to the small and medium-sized companies.

He went on to say that Iran’s private sector is keen to restore the past relations as well as boosting relations between small and medium-sized enterprises of both countries.

He reiterated that the economy does not move on command, and in order to boost international relations, new and upgraded methods away from commanding policies are required for presence in the markets.

Rezaei added that most of Iran’s exports to Sweden are done by the baggage which is mostly related to the foodstuff sector, adding that Iranian carpet and pistachio are exported to Sweden via the Hamburg market. He noted that the total direct export of Iran to Sweden stood at $11m in 2019 and including the unregistered exports, the figure can reach around $16m. He also said that Iran’s imports from Sweden stood at $51m in 2019 while both countries’ total trade volume was over $370m in 2018 which shows it has declined by $80m in 2019.

He reiterated that even the sanctions are lifted due to the banking problems and not approving FATF and CFT laws in the country, restoring banking ties with other countries is impossible or very difficult.