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. Although the relationship has significant growth potential, its development has been severely hampered by the ongoing problems related to the Iranian nuclear program.

EU-Iran trade restrictions

Trade with Iran is subject to certain restrictions derived from the sanctions imposed by the United Nations Security Council on Iran through UNSCR 1737 of 23 of December 2006 and UNSCR 1747 of 24 of March 2007 and UNSCR 1803 of March 2008. 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.

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. Iran benefits from the Generalised System of Preferences (GSP) and therefore from reduced import duties for its exports to the Community. However, preferential exports accounted for only 4% of total Iranian exports to the EU in 2008, as most of Iran's exports are oil products for which there is no import duty.

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.