Embargo Lifted from Iran – More Exposure of Iran in Exporting Business Is Visible
US administration has lifted the embargo from Iran to revive friendship. Tehran is now trying to communicate with America, Russia, Germany and the UK to enter into the global market with new strategies. The tension seems to have been controlled to bring more peace treaty opportunities to Iran to utilize. Iran will be a good exporter once again. Tehran will sell oil and non-crude oil products to foreign countries. This embargo lifted from Tehran will be helpful to the enhancement of the stronghold of Iran in the international market.
New Horizons in Trading- Iran Emerging Strong Exporter Once Again
With the replacement of the ban from Iran, there is expectation of the expansion of exporting business. in apressrelease, one of the political leaders ofTehranhasstated thatIran willexport more crude oil and non oil products todifferent foreigncountries. Though prices of crude oil are considerably down, Iran will have better oil exporting scope. Approximately $10bn revenues will be increased in next year after shrugging off the ban. It will give more financial strength to Iran for urban development and improvement of rural areas. There is also a probability of 5 percent GDP rate by 2016.
So, it is the time for Iranian entrepreneurs to work hard for smooth business expansion. Especially, in the field of oil, Iran will again be a strong rival challenging Riyadh and Kuwait. This country is not in GCC list. However, Tehran will be a powerful exporter in coping with OPEC and GCC nations. Apart from oil industry, Iran will be busy of investing time, money and resource to upgrade the non –oil industries.
The bilateral relationship with America is improving. However, many intellectuals are not 100 percent optimistic of the resultant effect of embargo lifting. They predict that US has played a hidden trick when it sanctioned approval for lifting embargo from Tehran for ensuring its participation in the global trading.
The advent of Iran is a good event. However, there are some hidden tracks and loopholes in such an official declaration. First of all, the US has not lifted the primary ban. The secondaryembargo has beensuspended orwithdrawnallowing nonAmerican traders, banks andothersectors to go for tie-ups withTehran.
This secondary ban lifting is not applicable to American companies. That means, any American native will not be allowed to start trading with Tehran without interference of White House. There is legal obligation.
So, primary ban is still imposed on Tehran.
The gray area in the declaration of suspension of the secondary ban from Iran lies in the legal intricacy which permits subsidiaries of American companies to trade with Iran. After discussion, US top brass allowed American subsidiaries to collaborate with Iranian entrepreneurs. If the primary ban is not cancelled, how American subsidiaries are able to make investment in Iran? It is double-standard or ambiguous. On the other hand, Tehran has shortlisted top 10 exporting items which will bring changes to the national industry of Iran.
Top 10 Exporting Items of Iran
· Crude Oil.
· Banking sectors
· Inorganic chemical components
Tehran has also increased its product exporting rate in certain sectors covering iron, copper, zinc and lead based materials. Germany, the UK and other nations start conferences with Tehran based companies for MOU.
Initiatives for FDI in Iran
Tehran has requested foreign investors and entrepreneurs to start lucrative trading with this gulf nation. It will be a solid platform to take Iranian products to advanced countries. Iran will be attached with global financial market removing misunderstanding, and legal drawbacks. More FDI or foreign direct investment opportunities in Iran are brightened. Central bankin Tehrandeclared thatwiththe decision ofban lifting, around$50 billionworth financial assets stored/reserved in USTreasury will bebrought back to the country for therejuvenation of the non-oil industry. After the conversation with Iran about nuclear proliferation, US are nurturing the futuristic possibilities of providing more financial stimulus to Iran for growth, development and business expansion.
South Korean and Chinese Visits to Iran- New Hope for Tie-up
The visit of Chinese parliamentary delegates to Tehran must give rise to new vistas for long term business expansion, development of agriculture, water supply and natural resources industry. Iran and China will try to remove barriers of misunderstanding to opt for innovative economic reforms. Same way, the relationship with Russia and South Korea must take a dynamic change with positive impact. Park Geun-hye, South Korean President has confirmed the improvement of relation with Iran through mutual understanding. Iran and South Korea will sign billion dollars worth trading deals to upgrade the oil and energy industry. In automobile, constructions and electronics, huge investment from South Korea is expected.
Russia –Ready to Trade with Iran after Lifting Ban
Alexander Tkachev, Russian Agricultural minister, has met top brass of Tehran for strengthening up the tie-ups in exporting/importing sectors. After the ban withdrawal, Russian government feels optimistic about the role of Iran in the exporting business. At present the estimated current trading value between Russia and Iran is around $2 billion. It will be higher as Russian government will place more orders to import nutritious fruits, and other food products from Tehran.
Therefore, doors for Iran are slowly opening with the cancellation of secondary ban by America. It will make Iran prosperous and competent to earn billion dollars by exporting different lucrative products.