Iran's trade with Switzerland grows 100%

Speaking to ILNA and reacting to Majlis decision for not levying double tax in trade between Iran and Switzerland, Sharif Nezam-Mafi said that this is positive news which can improve the trade between the two countries.

"This decision shows that lawmakers look at Switzerland as a long-term trade partner in Iran’s economy, adding that if it is implemented, it can boost the trade between Iran and Switzerland."

He noted that Switzerland is currently the main European trade partner of Iran and it has more trade with Iran than Germany, France and Italy.

The official expressed hope that continuity of this growth will help Iran and Switzerland to be their strategic partners in the fields of goods and natural resources.

Nezam-Mafi added that after reimposition of the U.S. sanctions against Iran by former U.S. President Donald Trump, most of Swiss companies unlike other European companies did not leave Iran and continued their presence and it shows long term vision of Swiss government and private sector companies regarding Iran.

He reiterated that if this decision of not levying double tax is implemented, it will be good for both Iranian traders and Swiss companies because one hurdle will be removed in way of expansion of ties.

He went on to say that whenever tax or involvement of state bodies are increased in the trade between the two countries, the process of trade is slowed down and the cost of trade rises, adding that with reduction of ta, the trade volume will definitely increase and therefore it is considered good news for trade between Tehran and Bern.

On the latest condition of Swiss Channel and trade between the two countries, he said if the Vienna talks bear fruits, and then there will be no need to this mechanism any longer because banks can start cooperation with other countries and this mechanism can be used when all avenues are closed and locked.

"Currently nothing has changed regarding the Swiss Humanitarian Trade Arrangement (SHTA) mechanism and the private sector can continue their trade via this avenue or other avenues that they have found," Nezam-Mafi confirmed.

He said removal of sanctions will reduce the cost of trade and this can increase the volume of trade. He expressed hope that with the deal in Vienna, the presence of Swiss companies and also Iranian traders’ presence in Switzerland would become more colorful.

The trade volume between Iran and Switzerland has been around $1.1b this year which shows 100% growth comparing to the same period last year. Iran’s share of this trade and its imports has been around $1b.

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