MESOPOTAMIA NEWS : BENNY WEINTHAL REPORTS German exports to Iran drop by half in first 6 months due to U.S. sanctions
The collapse in business suggests companies are scaling back business ties with Tehran to avoid trouble with the United States after Washington reimposed sanctions.
By Benjamin Weinthal August 12, 2019 19:02 – JERUSALEM POST –
US sanctions took a heavy toll on Germany’s export trade with the Islamic Republic of Iran during the first six months of 2019, causing a fall of 48%, according to a Reuters review of new statistics on Monday.The collapse in business suggests companies are scaling back business ties with Tehran to avoid trouble with the United States after Washington reimposed sanctions.
The US classifies Iran’s regime as the leading international state-sponsor of terrorism. Sales to Iran plunged by 48% to 678 million euros ($758.8 million) from January through June year-on-year, according to data from the Federal Statistics Office. Imports from Iran declined by 43% to nearly 110 million euros.
“The fact that trade between Iran and Germany has collapsed that massively is not a big surprise, unfortunately,” the BGA trade association said.
It pointed to the extra-territorial character of recent U.S. sanctions, which means that companies from other countries are also punished if they do business with Iran.
“German companies are forced to choose between their market activities in Iran and the United States, so it’s clear which market is preferred,” BGA said.
President Donald Trump last year pulled the United States out of a nuclear accord between Iran and major powers. Under the 2015 deal, international sanctions against Iran were relaxed in exchange for Tehran curbing its nuclear program.