Iran and Britain Sign Trade Cooperation Facilitation Agreement

On Wednesday, Sajid Javid, the British Minister of Trade, announced the signing of a trade cooperation facilitation agreement between the UK and Iran. Mr. Javid stated during a press conference in London on March 10 that the UK Export Agency and its Iranian counterpart signed the agreement. According to Reuters, the British Minister of Trade added that the aim of this agreement is to facilitate investment in contracts and export projects between the two countries. He also mentioned that the UK is working with its European partners to reduce banking restrictions against Iran. The UK Export Finance Agency, which provides guarantees for banks and insurance companies in the UK, suspended trade with Iran in 2012 due to extensive international sanctions against Tehran. Now, as the lifting and suspension of these sanctions have improved conditions for renewed cooperation with Iran, international banks and reputable insurance companies remain cautious due to fears of punishment from the United States regarding Iran, as emphasized by Reuters. The Iranian insurance industry and banking network have suffered the most from recent years of sanctions. In this context, the Deputy Supervisor of the Central Bank of Iran reported four days ago on efforts to 'alleviate concerns' of foreign banks in cooperating with Iranian banks, but acknowledged that 'Iranophobia in the banking sector' continues. Hamid Tehranfar, this Central Bank official, stated that the Central Bank has requested the International Monetary Fund to provide its opinion on Iran's banking regulations concerning anti-money laundering, and the IMF will announce its opinion in 2018. Ali Akbar Salehi, the head of Iran's Atomic Energy Organization, also reported on March 2 that some major European banks are delaying lifting sanctions against Iran. In February, Mohammad Javad Zarif, Iran's Foreign Minister, had asked the US to guarantee European banks that they would not be punished for conducting legitimate and legal transactions with Iran. In this context, criticism from China regarding the punishment of a telecommunications company related to Iran, the US taking Iran's new missile test case 'to the Security Council', Paul Ryan stating that the US Congress will work to intensify sanctions against Iran, and a senior IRGC official claiming they designed a two-thousand-kilometer missile for Israel were also noted.