Britain: We Will Address Banking Concerns to Develop Trade with Iran

Liam Fox, the UK Trade Minister, stated on Wednesday, November 3, that trade transactions between the UK and Iran are growing, and the UK government is working to address banks' concerns that hinder further development of trade relations between the two parties. According to Reuters, Mr. Fox mentioned that since last year and the reopening of the British embassy in Tehran, the relations between the two countries have improved, and following Brexit, the UK is striving to expand bilateral trade relations. He noted that while the current conditions have created a suitable environment for enhancing relations, the UK government is simultaneously 'deeply concerned' about the Iranian government's human rights record and the imprisonment of several Iranian-British citizens in Iran. Despite the lifting of banking restrictions related to international sanctions on Iran in January this year, many major international banks are still reluctant to engage in transactions with Iran due to other US sanctions against Tehran. The UK Trade Minister stated that Iran remains a challenging country in terms of economic activities. Liam Fox, speaking at an international finance conference in London, said, 'British companies are slowly but increasingly interested in resuming trade with Iran. The first signs of increased trade relations between Iran and Britain can be seen.' He added, 'The ongoing concerns and reluctance of the banking sector regarding investments and financial services related to these transactions mean that the benefits of lifting international sanctions have not yet been fully realized. Addressing these obstacles is one of our government's priorities.' Norman Lamont, the UK's trade envoy to Iran and a former economics minister, also expressed that the continued deadlock in Iran's access to the international banking network is 'deeply regrettable.' He stated during his speech at the conference, 'This situation is embarrassing. These problems only strengthen the position of critics and opponents of Iranian President Hassan Rouhani.' Reuters reminds that the Obama administration sought to limit American companies' transactions with Iran due to ongoing sanctions that barred Tehran's access to the financial market and the US dollar while encouraging international trade and banking relations with Iran. John Kerry, the US Secretary of State, has in recent months sought to encourage non-American banks to engage and cooperate with Iran, although he acknowledged that changing this situation would not be straightforward. Hamid Baeidinejad, Iran's ambassador to the UK, stated that banking issues are 'very problematic' for Iran and added that the US government is also 'dissatisfied' with this situation. Liam Fox added that his government is working with banks to find a way to facilitate transactions and that the UK is well-positioned to assist in modernizing Iran's private banks. He noted that the UK government prioritizes sectors such as consumer goods exports, medical services, water industry, advanced manufacturing, mining, airports, and aviation, and will send a delegation from the mining industries to Iran in December. The UK Trade Minister stated, 'Nevertheless, Iran remains a challenging country in terms of economic activities, and if it wants to benefit fully from the lifting of sanctions, it must take further steps to comply with international banking standards and other reforms.'