Head of Iran’s Chamber of Commerce, Industries and Mines Mohammad Nahavandian said “Europe’s economy is seriously interested in the expansion of co-operation with Iran for different reasons, including energy security, but political obstacles have caused some problems.”

Nahavandian observed that his country’s effort to establish and strengthen relations through the chambers of different nations played a key role in the expansion of Tehran’s ties with the European states. He also reminded that after the downturn despite political pressures, Iran has maintained and expanded its ties with many European companies, and also has developed relations with 40 chambers and joint councils of countries from different parts of the world.

It should be noted that in February, Nahavandian has said the West’s sanctions against Iran has helped to expand trade with non-western countries. He is of the opinion that sanctions increase the economic costs not only to those under sanctions but also to those impose them.

Nahavandian claims are well corroborated by the open and tacit support Iran is getting from within Europe and rest of US. While most EU countries reduced commercial activities with Iran over the past year, Austria expanded them, and several German firms too continued to maintain trade.

Iran which has the world’s second largest reserves of both oil and gas is facing US sanctions over its civilian nuclear program. However, the Iranian president Ahmadinejad’s strong defence at the ongoing conference of signatories of the Nuclear Non-proliferation Treaty (NPT) is likely to weaken the US stance on any fresh sanctions against Iran. Ahmadinejad said that Washington has offered not “a single credible proof” that Iran was seeking nuclear weapons, and reiterated that Iran’s intention was to produce nuclear power but not weapons.

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The president of the Washington Apple Commission (WAC) Todd Fryhover said Iraq and Iran could be future expansion points for the otherwise stable but highly competitive Middle East market for Washington apples. Likewise, he informed apple exports to China and India from Washington were likely to double as these countries had large populations with increasing purchasing power.

The WAC identifies that direct access to these markets are key to increase sales. Washington shipped 1.9mn boxes of apples into Hong Kong and China in the 2008-09 sales season and that could double if “we had full varietal access,” Fryhover said. Under the prevailing agreements, Washington can export Red and Golden Delicious apples directly into China, but Gala, Granny Smith and any other varieties are not allowed. And these varieties reach China through the grey market route of Hong Kong.

According to the WAC figures, India’s appetite in the last five years increased significantly to 1.75mn boxes of Washington apples in the 2008-09 sales season. Higher buying power and lower quality of domestically sourced apples were the major factors cited as the reasons for tremendous acceptance of Washington apples in India despite very high customs duty.

Fryhover said Iraq already receives some Washington apples through Dubai, re-exporting centre of the UAE and Kuwait, but Iran did not have any such source. Iran being the second largest populated country of the Middle East after Egypt, which has two to three times more buying power than the Egyptians hold potential provided the Washington apples get direct access. Similarly, the changing trends in Iraq also will be explored through its efforts in the Middle East.

Last July, the WAC has tied up with the Arab Marketing Financing International (AMFI) to boost its presence in the Middle East. The AMFI, a Beirut-based company, with promotional representatives in Dubai, Saudi Arabia and Egypt, takes up the responsibility of marketing of the apples through retail displays and consumer awareness about the Washington variety.

Currently, Dubai is the re-exporting portal for Washington apples into Saudi Arabia, Kuwait, Sudan, Qatar, Oman, Yemen and Jordan. And about 1.8mn boxes of Washington apples were sold to Dubai in the 2008-09 sales season.

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