Dáil Éireann Debate, Thursday - 24 May 2018
17. Deputy John Curran asked the Minister for Business, Enterprise and Innovation if her Department has assessed the impact that United States sanctions on Iran will have on multinational and indigenous companies here; and if she will make a statement on the matter. [22756/18]
Amharc ar fhreagraIreland shares the views expressed by the EU High Representative for Foreign Affairs and Security Policy, Fredrica Mogherini, to the effect that the EU deeply regrets the announcement by the US that it will withdraw from the Joint Comprehensive Plan of Action (JCPOA) which was signed by the "E3+3" Group with Iran. The EU remains committed to the continued full and effective implementation of the JCPOA. The lifting of sanctions against Iran under the JCPOA has led to a positive impact on trade and economic relations with Iran, and its commitment to ensuring that this can continue to be delivered in the interests of improved geo-political stability.
Form a trade perspective, Iran, with a population of 80 million, and a relatively wealthy middle class, is a potential growth market worthy of further exploration for Irish exporters. However, I agree that the recent announcements by the US Administration are likely to have a negative effect on this growth potential, in particular if the US imposes sanctions on European companies that do business in Iran following their withdrawal from the Agreement.
According to CSO figures, Irish goods exports to Iran nearly doubled from €72 million in 2016 to €143 million in 2017, primarily due to an increase of €67m in the General Industrial Machinery category. However exports to Iran are a very small proportion of Ireland's total global goods exports - amounting to only 0.1% of Ireland’s total goods exports in 2017.
Goods imports from Iran to Ireland increased from €1.6 million in 2016 to €3.5 million in 2017. According to the CSO, there is no services trade with Iran.
According to CSO data, there is no Iranian foreign direct investment into Ireland. There are no Iranian companies in the IDA portfolio at present. IDA Ireland is maintaining constant contact with their client base in relation to any potential impacts the sanctions may have and the Agency will continue to monitor the situation closely.
Despite the alleviation of sanctions under the JCPOA, there remain practical difficulties for Irish businesses seeking to do business in Iran. The continuance of some US financial sanctions has meant that European banks - including Irish institutions - have been cautious with regard to engaging in financial transactions with Iran. In addition, Iran is often not included as a covered geographical territory for travel insurance and/or other types of business insurance, where the insurance company is from the US, or has a US mother company, and travelling to Iran negates the visa waiver for Irish passport holders travelling to the US.
Despite these difficulties, Enterprise Ireland has supported the efforts of Irish companies wishing to trade with Iran, while highlighting the practical difficulties of doing business there. EI has previously brought trade delegations to Iran, and also held a 'Doing Business with Iran' Event in Dublin in July 2017, which 35 EI clients attended. EI has also secured the services of an in-country Iranian market expert/pathfinder, to provide advice and assist EI clients WHO may encounter difficulties due to the re-imposition of sanctions or the threat of same.
As regards client companies of EI, the precise consequences arising from the very recent announcement by the US Administration of its withdrawal from the JCPOA are still being analysed and EI, together with my Department, will keep the impacts on those companies under review.
