European Commission Directorate-General for Trade

Iran

The EU is the first trade partner of Iran, accounting for almost a third of its exports. Close to 90% of EU imports from Iran are energy related. Iran ranks as 6th supplier of energy products for the EU. Negotiations for a Trade and Cooperation Agreement (TCA) between the EU and Iran initiated in 2002 have been on hold since August 2005, when Iran resumed its nuclear activities.

EU-Iran trade restrictions

Trade with Iran is subject to certain restrictions derived from the sanctions imposed by the United Nations Security Council (UNSC) on Iran through UNSCR 1737 of 23 of December 2006, UNSCR 1747 of March 2007, UNSCR 1803 of March 2008 and UNSCR 1929 of June 2010. EU trade restrictions with Iran are regulated by Council Regulations 423/2007, 618/2007 and 1110/2008, which set out a list of products prohibited from export to Iran.

Following the European Council declaration on Iran in 2010 relating to new restrictive measures, EU has adopted on 26 July 2010 a Decision that introduces additional sanctions against Iran.

In line with the mandate given by the European Council on 9 Dec. 2011, the Foreign Affairs Council of 23 January adopted a package of new measures. These consist of an oil embargo, sanctions on the petrochemicals industry and financial measures including a partial freezing of the assets of the Central Bank of Iran. Furthermore, the ‘package’ also includes restrictions on the export of banknotes and coins, gold, precious metals and diamonds, restrictions on export of additional ‘dual-use items’ and the freezing of assets of some additional Iranian companies (Tidewater, Bank Tejarat).

1. COUNCIL DECISION 2012/35/CFSP of 23 January 2012 amending Decision 2010/413/CFSP concerning restrictive measures against Iran
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2. COUNCIL REGULATION (EU) No 56/2012 of 23 January 2012 amending Regulation (EU) No 961/2010 on restrictive measures against Iran
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3. Implementing legislation: (in the course of preparation)
4. List of EU restrictive measures (sanctions) in force (measures adopted in the framework of the Common Foreign and Security Policy)
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Send in questions on sanctions to the European Commission

 

Bilateral trade relations

Negotiations for a Trade and Cooperation Agreement (TCA) between the EU and Iran initiated in 2002 have been on hold since August 2005, when Iran resumed its nuclear activities. Trade with Iran is subject to the EU general import regime, since Iran is not a member of the WTO and there is no bilateral agreement between the EU and Iran. Under the EU-sanctions, trade with Iran is still possible for the goods which are not subject to sanctions (see sanctions legislation above), but payments have become difficult to carry out since the designation of the Iranian Central Bank.

WTO

Iran applied to join the WTO in September 1996, however there has been no agreement so far at the WTO to start the accession negotiation process.