Analysis of the trading relations between Iran and the UK, US and EU in light of the 2016 international sanctions’ partial lifting
Sharab, Ahmed Youssef Hassan
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International trade involves many factors to ensure its growth and sustainability. Liberalization, globalization and technological advancements are key for the success of international commerce; however, trading across borders requires the consideration of all legal frameworks regulating the international business environment. Enterprises that are willing to operate internationally by way of expansion adopt specific strategies to achieve such goal. Nevertheless, attaining such a goal does not rely solely on implementing the economic strategies but rather it is the political situation that determines the extent to which international trade can develop at a given country. Many countries seek to create new markets internationally and the UK government sets an example. The UK took considerable steps in expanding its trade relationships on the international level and particularly with the Islamic Republic of Iran, (“Iran”) as a new commercial opportunity arising after partially lifting the sanctions. Iran has found itself in a situation where it had to deal with unfavorable complex relationships that involve major economic powers from the Western part of the world including the United States of America, (the “U.S.”) and the United Kingdom, (the “UK”). Considering the amount of power and influence these Western governments wield, Iran and all its affiliations have suffered major blows in their economy witnessed in the devaluation of the national currency, the Iranian Rial, (the “Rial”). The UK, the European Union, (“EU”), and the U.S. have partially lifted the most recent sanctions that saw the Rial lose more than a hundred percent of its value, a move which opens up a window of opportunities for UK businesses and those from other countries which play on the international markets. However, striking the right balance between conducting international business in a sanctioned country while avoiding penalties of violating international sanctions, is the hurdle which creates the highest level of risks for UK businesses wishing to do business with Iran. Accordingly, careful interpretation of the relevant laws and business practices is of paramount importance.