Iran: German economy calls for protection of federal government

With the nuclear agreement, trade with Iran has recently risen significantly. Now German companies are afraid of the consequences of Donald Trump's decision.

Iran: German economy calls for protection of federal government

The German economy fears negative effects due to termination of Iran-nuclear agreement by Donald Trump. Leading business associations refore appeal to EU and federal government to protect international trade relations.

"The recent decision by US president hits German economy hard," said president of German Chamber of Commerce and Industry (DIHK), Eric Schweitzer. "It drives concern to lose US business through its trade with Iran." The federal government and EU Commission should commit mselves to protecting business.

According to Schweitzer, European companies are threatening penalties even if an Iranian business partner finds mselves on US sanction lists. The US authorities should refore publish advice on how to deal with new situation as soon as possible, President of Foreign Trade association BGA, Holger Bingmann, demanded. "But this too will only slightly limit chaos that we are now expecting."

Germany is one of most important European trading partners of Iran, even if volume of trade is comparatively low. After loosening of sanctions in context of 2015 nuclear agreement, trade had increased significantly – most recently to a volume of 3.4 billion euros. Due to its oil exports, according to BGA, Iran had benefited much more than German exporters.

Nulearabkommen-Maas calls Iran to a prudent response to Foreign Minister Heiko Maas has urged Iran to respond cautiously to US exit from nuclear agreement. © PHOTO: Reuters TV federal government wants to examine follow-up

France announced that European States will protect ir businesses in Iran. At level of EU, one would intervene in Washington, it was said from environment of government. The spokesman of federal government, Steffen Sally, said that consequences for economy are being audited.

Trump justified his decision by, among or things, that government in Tehran continued its quest for nuclear weapons despite 2015 agreement. The nuclear agreement concluded in July 2015 between Iran and five UN veto powers and Germany is intended to prevent Iran from acquiring capabilities to develop nuclear weapons. According to agreement, Iran has significantly reduced uranium enrichment and allowed stricter controls. In return, financial and trade sanctions imposed in nuclear dispute were lifted.

These sanctions will now re-introduce US – EU is against this step and should try to limit economic impact of US sanctions on Iran. For Trump's decision already has consequences: withdrawal of USA has driven price of oil up, and in Germany heating oil price also reached a three-year high.

Updated Date: 10 May 2018, 12:03

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