Iran traded 726,663 tons of non-oil commodities worth $543.62 million with the European Union member countries during the first month of the current fiscal year (March 21-April 20), to register a 63.5% growth in tonnage and 6.12% decline in value compared with the same period of last year.
Latest data released by the Islamic Republic of Iran Customs Administration show Iran’s exports totaled 80,265 tons worth $45.41 million during the month, indicating a 71.66% rise in tonnage and 28.77% fall in value year-on-year.
Imports stood at 646,399 tons worth $498.21 million, up 62.54% in tonnage and down 3.31% in value YOY.
EU is a political and economic union of 28 member states located primarily in Europe.
Main Commodities, Trading Partners
Iran mainly exported non-alloy semi-finished iron/steel products, film grade polyethylene and antiserum to the EU countries.
In exchange, major commodities imported into Iran included soybean, oilcake, barley, field corn and machinery.
In terms of total trade value, Germany topped the list among EU members with Iran trade standing at 115,984 tons worth $139.46 million, up by 166.34% and 1.16% in tonnage and value respectively YOY.
Exports to Germany amounted to 43,041 tons worth $19.67 million to register a 1,239.73% and 91.37% growth in tonnage and value respectively YOY.
Germany was Iran’s biggest export destination among the EU countries and 15th in the world. In return, it exported 72,943 tons of commodities worth $119.79 million to Iran, up by 80.84% in tonnage and down 6.11% in value YOY.
The country was the second exporter of goods to Iran among the states and sixth to Iran in the world.
Major Iranian commodities exported to Germany were non-alloy iron/steel ingots, antiserum, polystyrene, floorings and saffron.
For its part, Germany mainly exported machinery, barley, graphite electrodes used in furnaces and synthetic fibers to Iran.
The Netherlands was Iran’s second biggest trading partner among EU members during the 12 months, as two-way commercial exchanges stood at 327,031 tons worth $130.33 million to register a 366.81% and 190.61% growth in tonnage and value respectively YOY.
Iran exported 999 tons of goods worth $1.11 million to the Netherlands, down by 60.28% and 73.49% in tonnage and value respectively YOY.
The Netherlands was Iran’s sixth export destination among EU countries and 43rd in the world during the period.
Iran’s exports to the Netherlands included ferrochrome, saffron, machinery and vegetables.
The country imported 326,032 tons of commodities worth $129.21 million from the Netherlands, up 382.72% and 217.93% in tonnage and value respectively YOY, which mainly constituted soybean, field corn, oilcake and medical tools.
The Netherlands was the top exporter of goods to Iran among EU states and fifth exporter to Iran in the world.
Italy was Iran’s third major trading partner among the states under review.
Trade between Iran and Italy amounted to 21,156 tons worth $83.93 million, indicating a 1.14% and 13.11% increase in tonnage and value respectively YOY.
Iran’s exports reached 13,087 tons worth $7.66 million, up 8.47% in tonnage and down 39.62% in value YOY, while Italy’s exports to Iran amounted to 8,069 tons worth $76.27 million, down by 8.86% in tonnage and up 23.98% in value YOY.
Italy was Iran’s 25th export destination as well as the third exporter of goods to Iran among EU states. The country was Iran’s 25th export destination and seventh exporter to Iran in the world.
Non-alloy iron/steel ingots, polyethylene, casting products and animal hide were Iran’s main goods exported to Italy, while Italy mainly exported gas turbines and AC generators.
Bulgaria was Iran’s third biggest export destination, after Germany and the Netherlands, among EU states and 26th in the world, as Iran exported 8,491 tons worth $7.52 million to Bulgaria during the month, up by 71.93% and 65.77% in tonnage and value respectively YOY.
Iran mainly exported polyethylene grade film, polystyrene and polyethylene to Bulgaria.
Highest Growths, Declines in Trade
Trade with Croatia ($61,033), Ireland ($3.82 million) and the Netherlands ($130.33 million) saw the highest YOY growths of 13,167.98%, 195.57%, 190.61% respectively, while trade with Lithuania ($16,732), France ($17.68 million) and Malta ($5,266) witnessed the lowest declines of 91.13%, 77.4% and 76.45% respectively.
Iran’s exports to Croatia ($61,033), Latvia ($84,915) and Finland ($1,824) saw the highest growths of 13,167.98%, 158.89% and 92% respectively, while exports to Slovenia ($62,268), Belgium ($209,227), and Lithuania ($16,732) witnessed the highest declines of 97.07%, 97.04% and 91.13% respectively.
Imports from the Netherlands ($129.21 million), Ireland ($3.82 million) and Austria ($32.49 million) saw the highest growths of 217.93%, 195.57%, and 170.51% respectively, while imports from France ($17.19 million), Spain ($9.29 million) and Finland ($2.61 million) witnessed the highest declines of 77.83%, 74.17% and 72.84% respectively.
INSTEX Remains Inert
France, Germany and Britain have established a new channel for non-dollar trade with Iran, dubbed Instrument in Support of Trade Exchanges (INSTEX), to avert US sanctions.
INSTEX is headquartered in Paris with a German chief executive officer. Germany, France and the UK are its shareholders.
The mechanism “will allow for legitimate trade to continue as foreseen in the nuclear agreement”, EU Foreign Policy Chief Federica Mogherini has been quoted as saying.
A mirror company was officially registered in Iran late last month to partner with the European trade mechanism.
The Tehran-based Special Trade and Finance Institute was officially registered as a private company. It is the reciprocal entity of INSTEX aimed at providing payment settlement services to legal and natural importers/exporters as well as domestic and foreign banks, and building relations with its European counterpart and monetary channels in other countries.
Despite the establishment of the trade mechanism, Iranian officials say it is far from sufficient in fulfilling the commitments of signatories of JCPOA sans the US, especially the EU. In fact, Iran accuses the Europeans of not doing enough to save the deal.
Governor of the Central Bank of Iran recently lashed out at Europe's hesitation in implementing INSTEX, saying statements such as "the EU is seeking to create a financial mechanism for trade with Iran” have been repeated so often that it has become a threadbare excuse.
European powers are facing huge American pressure to drop its proposed trade channel with Iran and it will also not succumb to ultimatums from Tehran, French Finance Minister Bruno Le Maire said on Tuesday.
“Yes, there is American pressure. It’s strong, very strong and very direct on this subject,” Le Maire told reporters in Paris.
"There is pressure on political officials, the administration and all those who are implicated on this subject,” he was quoted as saying by Reuters.
Iran's President Hassan Rouhani said on May 8 that Iran would give the states parties to the nuclear deal 60 days to remedy their breaches and restore Iran's interests enshrined by the international deal.
“I do not think that Europe will give into an ultimatum,” Le Maire said.
Data released by Luxembourg-based Directorate-General of the European Commission, Eurostat, show more than €18.39 billion worth of commodities were traded between Iran and the European Union member states in 2018, registering a 12.2% decline compared with the value of commercial exchanges in the previous year.
This is while Iran-EU trade stood at more than €20.95 billion in 2017, showing a 52.41% increase compared with 2016.
