Economy, Domestic Economy

Iran, UK Sign Deal to Promote Trade Ties

Iran, UK Sign Deal to Promote Trade TiesIran, UK Sign Deal to Promote Trade Ties

UK Export Finance and the Export Guarantee Fund of Iran have committed to enhancing trade and economic cooperation with a memorandum of understanding to help British businesses export.

Under the agreement, UKEF, the UK’s export credit agency, and EGFI, the Iranian state-owned credit insurance company, will work together to identify opportunities for trade in capital goods, equipment and services between the two countries.

It also allows the parties to co-finance and co-guarantee financing for projects or contracts in third countries involving British and Iranian exports, the UK government announced in a press release on its website.

The memorandum follows the extensive sanctions relief Iran received earlier this year, as a result of which UKEF immediately reintroduced cover to support UK companies seeking to compete for business in Iran.

Minister for Trade and Investment Lord Maude welcomed the agreement, saying: “The UK government is working to build a strong and long-term partnership with Iran, and trade is fundamental to this. Agreements such as this one between UKEF and EGFI will help British businesses realize the opportunities that economic reengagement will bring.”

UKEF’s Chief Executive Officer Louis Taylor said UKEF is committed to supporting UK businesses’ ambitions to trade with Iran, and to playing its part in the government's efforts to expand trade ties.

“Working with EGFI will enable us to provide our customers with comprehensive advice and support as they look to trade with Iran. Through this partnership, we can identify—and help create—real opportunities for UK exporters,” he said.

Seyed Kamal Seyed Ali, CEO and chairman of EGFI, welcomed this partnership.

"Closer cooperation with UKEF will help create opportunities for UK businesses to play their part in realizing Iran’s plans for rapid economic and infrastructure development. The agreement will also help EGFI to support Iranian exporters as they look to trade with the UK," he said.

Referring to the signed MoU, British Business Secretary Sajid Javid said, "Partnerships such as this will help British businesses seize the opportunities that economic reengagement brings. And it will give them the opportunity to play a part in realizing Iran’s plans for rapid economic and infrastructure development."

Addressing a conference in London, Javid announced that he plans to lead a trade mission to Iran later this year.

"It will see some of our leading companies seeking out new opportunities across the country. And it will give me the opportunity to talk face to face with Iranian officials and with Iranian business men and women, so we can remove some of the remaining barriers to trade between our countries," he said.