A recent measure by the German government to limit business with Iran involves the removal of trade incentives that has no significant role in bilateral relations and is not expected to harm economic ties between the two countries, according to a senior businessperson with the knowledge of the matter.
Germany's government has reportedly suspended state measures designed to foster business with Iran in reaction to what it calls the repression of nationwide protests in the Islamic Republic.
The suspension is said to affect export credits and investment guarantees as well as Germany's manager training and trade fair programs in Iran.
A senior member of Iran-Germany Joint Chamber of Commerce told Iran Chamber of Commerce newsroom on condition of anonymity that the decision taken by the German government includes a range of trade incentives that have not been great enough to have a meaningful impact on trade between the two countries and therefore, their suspension will not also be significant for bilateral relations.
He said, however, that the decision has had psychological impact on those doing business between Iran and Germany as they make repeated phone calls and ask about their possible losses as a result of the new decision.
“In general, it should be said that despite this decision, nothing new has happened in the trade relations between Iran and Germany,” he noted.
German-Iranian trade totalled 1.76 billion euros ($1.87 billion) in 2021.