International law firm Clyde & Co’s recent survey of over 50 senior executives indicates that 40% of them believe the lifting of Iranian sanctions will have a greater impact on their businesses than Brexit negotiations and the upcoming US presidential election over the upcoming financial year, the UK-based firm reported on its website.
Sanctions against Iran were lifted in mid-January in lieu of temporary curbs on its nuclear program after the country reached an agreement with world powers last year.
While the withdrawal of Iranian sanctions could provide a huge windfall for businesses, there is a raft of issues that are currently stopping companies from trading with the country. One of the key barriers is access to finance.
Despite reassurances from the US Office of Foreign Assets Control, most banks are still reluctant to finance businesses involved in Iran, the report added.
Clyde & Co is focused on five core sectors: insurance, energy, trade & commodities, infrastructure and transport. The firm employs 2,000 lawyers in 46 offices in every global region, including Latin America, Africa, Europe, the US, Canada, the Middle East, Asia Pacific and the UK.
The United Kingdom intends to withdraw from the European Union, a process commonly known as Brexit, as a result of a June 2016 referendum in which 51.9% voted to leave the EU. The separation process is complex, causing political and economic changes for the UK and other countries.
Over 40% of the senior executives under Clyde & Co’s survey said post-Brexit, the outcome of global trade agreements would have the most significant impact on their business. Trading companies operating within either the UK or EU are likely to feel a significant impact to their business once the UK negotiations with the EU are completed.
For trading companies that operate outside of the EU and the UK, Brexit may not have a direct impact. However, the UK is looking to establish new trade agreements with non-EU countries. Once these ties are established, they may have a significant impact for businesses operating elsewhere.
The US presidential election of 2016 has been scheduled for November 8, 2016. Voters will choose their upcoming president between hardliner businessman Donald Trump and former secretary of state Hillary Clinton to replace Barack Obama.
In light of current market conditions, the most popular strategy the surveyed executives regard as a priority for their business is entry into new growth markets (36%). This was followed by embracing new strategic partnerships (26%) and restructuring (17%).
