January 16, 2016

IT'S A TRADE DEAL:

Multinationals ready to jump into Iran market (AFP January 17, 2016)

Since that deal was reached in July, delegations of officials and business executives from Germany, France and Italy have headed to Iran to prepare the ground to win back some of the market share lost to emerging nations like China and Turkey, or countries like Russia and Japan which kept friendly relations with Tehran.

Germany's BGA foreign trade federation believes Berlin will have a difficult time reclaiming its former status as Iran's largest trade partner as Chinese firms have swooped in during sanctions.

Deputy Foreign Minister Zhang Ming of China, the top buyer of Iranian crude, said during a recent visit that Beijing intends to fully exploit the potential for cooperation with Tehran in the manufacturing sector and construction of infrastructure.

US companies like Boeing and General Electric are also interested in the opportunities in Iran, but are handicapped by the fact that Washington has not had diplomatic relations with Tehran for 35 years and will keep certain sanctions in place.

Meanwhile, the Iranians are looking for foreign firms to help modernize the country's infrastructure, which has suffered from a lack of investment and technology as the economy was largely cut off from the outside world for the past decade.

A resumption of trade should also help put the Iranian economy, which suffers from high unemployment and hyperinflation, back on its feet.

Posted by at January 16, 2016 9:37 PM

  

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