TEHRAN (Iran News) – Iran’s exports to Europe in the first four months of 2012 have been around 262m euros and the trade between Iran and European states has hit the lowest level.

Deputy Head of Iran-Sweden Joint Chamber of commerce Mr. Alireza Shamsfar says the trade with Europe is in its lowest level and as long as a mechanism for banking transactions between the two sides is not restored, the trade with Europe will not pick up.

According to the latest statistics released by European Trade Center (ETC), the trade between Iran and EU in the first four months of 2021 has been valued around 1.45b euros which shows one percent slump comparing to the same period in 2020.

The statistics show that EU’s exports to Iran in the first four months this year are valued at 1.188b euros and in return the value of Iran’s exported goods to EU stands at 262m euros. So the trade balance in four months is negative and minus 900m euros in favor of EU.

Also the report shows that Germany, Italy and Spain accounted for almost 70 percent of Iran’s exports to EU countries while 54 percent of Iran’s total imports from EU belongs to these three countries. Germany has been the major European trade partner of Iran as Iran exported goods worth of 93.9m euros to Germany, 60.22m euros to Italy and 23.14m euros to Spain.

Germany has had biggest share of Iran’s imports from EU countries with exporting goods worth of 490.5m euros and the Netherlands with 154,69m euros and Italy with 142.12m euros trailed Germany.

While Iran’s export to EU states have been narrowed, Turkey’s exports to EU states in the same period stood at 24.7m euros which shows 21 percent growth comparing to the same period in 2020. So Turkey’s exports to Europe have been 94 times more than Iran’s.

Deputy Head of Iran-Sweden Joint Chamber of Commerce Mr. Shamsfar blames lack of a banking transaction mechanism for the insignificant trade between Iran and Europe. He believes as long as Iran does not join the FATF even with reaching agreement in the Vienna talks and the revival of the JCPOA, the trade volume between Iran and European countries will not bounce.

This economic activist believes that Iran’s exports to Europe in recent years have declined significantly comparing to its imports and the reason for this negative balance is lack of access  of Iranian exporters to the banking and monetary mechanisms which are accepted by European states.

He admitted currently the trade with Europe has hit its lowest level, and only Europe exports humanitarian goods to Iran and Iran’s exports to Europe are also limited to the food products.

Shamsfar said that Iran’s trade with Europe experienced highest level in 2018 with trade volume over 20b euros and some countries like Austria in those days had set Iran as a target for trade more than 2b euros. The trade with Europe since 2018 has stared downward trend and the reason is the lack of mechanism for financial and banking transactions.

He said European countries now provide their needs through other countries and Iran is losing its European markets and it will make the condition very tough for Iranian exporters for trade with Europe and even after the removal of sanctions, it will be very difficult for them to return to the European markets.