Iran and Germany have maintained close commercial ties for decades. However, with the imposition of anti-Iran sanctions, China and several other countries to overtook Germany in the Iranian market.
The lifting of sanctions in January 2016 which followed last year’s nuclear deal between Tehran and the major world powers provided a much-needed fillip for the Germans to reclaim their major role in Iran’s market.
The trip by a German delegation led by Economy Minister Sigmar Gabriel to Tehran showed that the European nation is seeking to expand ties with Iran.
This was Gabriel’s second visit to Tehran since the Islamic Republic and the P5+1 (the US, Britain, Russia, France, China plus Germany) reached the nuclear deal in July 2015.
Major German firms and its banking sector signed deals with their Iranian counterparts during the visit.
The presence of the German delegation echoed the message that one of the world’s largest economies has resumed trade and economic ties with Iran.
Nowadays, with insecurity prevalent in most parts of the Middle East, Iran is among the few nations that has provided high security for its people and foreigners. This is not only drawing German investors to Iran but also all economic institutions across the globe.
Last year, Tehran-Berlin trade reached €2.5 billion indicating an increase following years of stiff sanctions. It is estimated that the figure will reach €5 billion in the short-term and €10 billion in the long-term.
Iran mainly exports raw materials to Germany. Hence comprehensive planning is required to pave the ground for exporting manufactured goods to Europe’s largest and strongest economy. The private sector can play a major role in this.
German and Iranian private sectors held a meeting during the German delegation’s visit to Tehran. This indicated the government’s desire to have the private sector assume a more significant role in bilateral trade ties.
To sum up, the revival of Tehran-Berlin ties will benefit both parties. It is obvious that the two sides are making efforts to boost bilateral ties./ Iran Daily