|
|
|
(Last updated: 24 Jul 2008)
United Nations Security Council Sanctions - Iran
Australia has taken action to implement fully in Australian law decisions by the United Nations Security Council to impose targeted trade and financial sanctions against Iran that are binding on all States. These decisions may be found in Security Council Resolutions 1737 of 23 December 2006 and 1747 of 24 March 2007.
You should be aware that some of the restrictions under these sanctions apply extraterritorially to Australian citizens and Australian companies overseas.
If you now or in the future are considering commercial or other dealings with Iran we recommend that you familiarise yourself with the operation of the sanctions regime, and, if necessary, seek independent legal advice before making commercial decisions.
For more information about the Iran sanctions, please go to DFAT’s website: www.dfat.gov.au/un/unsc_sanctions/iran.html
Detailed information on the export of defence and dual-use goods can be viewed at the Department of Defence’s Trade Control and Compliance website: www.defence.gov.au/strategy/dtcc/default.htm
For more information about United Nations sanctions currently in force, please see: www.dfat.gov.au/un/unsc_sanctions/index.html.
The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Iran. This is regularly updated, and should be checked before planning travel. |
 |
|
|
|
| Capital city: |
Tehran |
| Surface area: |
1,648,000 sq km |
| Population: |
70.9 million |
| Official language(s): |
Farsi (Persian) |
| Head of State & Head of Government: |
H.E. President Dr Mahmoud Ahmadinejad |
| Australian exports to Iran: |
A$211 million |
| Australian imports from Iran: |
A$36 million |
| Iran's principal export destinations: |
Japan, Italy, France |
| Iran's principal import sources: |
China, France, India | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
|
 |
|
|
|
According to the most recent Economist Intelligence Unit (EIU) Country Report, the decisive conservative victory in the February 2004 parliamentary elections, followed by the election of Mahmoud Ahmadinejad to the presidency in June 2005 effectively ended Iran’s reformist movement. The new economic policy is based on populist fiscal expansion, increased public spending and sub-inflationary lending.
The conservative-dominated seventh Majlis (parliament) has rejected the economically liberal elements of the 2005–09 five-year plan, which the reformist-dominated sixth Majlis had passed. These measures had sought to cut state subsidies, reduce state dominance of the economy and encourage foreign investment.
Though the private sector, including international investors, made some headway into the market during the Rafsanjani (1989–97) and Khatami (1997–2005) administrations, major sectors (such as oil and gas, transport, telecommunications, industry, banking and finance) remain overwhelmingly under the purview of the state and its entities. Moreover, it would appear that President Ahmadinejad would share the reluctance of the present Majlis towards privatisation and foreign investment.
President Ahmadinejad has promoted populist policies, promising to re-distribute the Iranian oil wealth more expansively and to eliminate corruption in the government. There has been a sweeping purge of the bureaucracy, including replacing the heads of state-owned banks, regional governors and diplomats with conservative allies. The president has also committed the government to funding public-sector projects and charitable initiatives.
On 6 January 2008, the president presented his budget for the Iranian calendar year 1387 (fiscal 2008-09) to the Majlis. The US$289 billion budget is a 17 per cent increase on the previous year’s budget. The president has encountered opposition from both reformist and conservative MPs for his economic performance, particularly inflation. The 2008-09 budget was based on a conservative oil revenue assumption of US$39.70 a barrel.
German firms have continued to play a major role as suppliers of capital goods, although Chinese, French, Indian and Italian firms have made inroads into Germany’s position. Japan was Iran’s largest export market in 2006-07, followed by the European Union.
Key economic indicators and statistics 2007:
- GDP – US$294.1 billion
- GDP per capita – US$4,149
- Real GDP growth – 5.8 per cent
- Inflation – 17.5 per cent
The key factors affecting goods and services demand are:
- Demographic shift: almost 50 per cent are under 20 years of age and 70 per cent are aged under 30 years.
- Rising unemployment, issues on underemployment and loss of buying power.
- Increasing migration from rural areas, thereby causing pseudo-urbanisation and underground economic activities.
- Weakening middle-class.
- Increasing pseudo-Westernisation and demand for foreign products, not supported by marketing techniques such as market research or advertising to build brand loyalty in a systematic way.
- Lack of transparent distribution systems.
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
|
|
|
|
Political climate
Two determinant events have profoundly affected Iran's recent political history. The 1979 Islamic revolution and the eight years Iran-Iraq war. The 1979 revolution marked the end of 2500 years of absolute monarchical power and gave birth to Iran's first democratically elected Parliament. However, the Islamic Republic of Iran has developed its own government structure and decision-making process.
Political parties do not currently form the basis of parliamentary activity. Most Majlis (Parliamentary) candidates are independent, although identifiable as sympathetic to certain factions. Parliamentary and Presidential elections are held every four years.
The Majlis-e-Shuray-e Islami (National Assembly) consists of 290 elected members. All Majlis candidates must be endorsed by the Council of Guardians to gain eligibility. Six of the 12-member Council of Guardians, are appointed by the Rahbar (religious supreme leader) and six by the Majlis. A fourth 35-member government institution, the Expediency Council, is appointed by the Supreme Leader and mediates between the Majlis and the Council of Guardians.
The Council also scrutinises candidates standing for election to national office. The Supreme Leader, the Council of Guardians and the Expediency Council all have overruling rights in the legislative process.
|
|
|
|
Trade relations and statistics
Iran has historically been at the crossroad between Europe and Asia, with the famous Silk Road passing through the country. Iran’s strategic position became even more important following the discovery of oil, and later as a major ally of the USA during the cold war. The country has also played a major role in the context of the Arab-Israeli conflict.
Iran's relations with the USA and its allies were seriously undermined in the aftermath of the Islamic revolution.
An important setback in the US-Iran relation came in early 2002 when Iran was portrayed together with Iraq and North Korea as a member of 'the axis of evil' and, as such, as a major threat to US security. The US continues to keep the pressure on Iran. In the current 'nuclear standoff' situation, there appears little prospect for an easing of US trade and diplomatic sanctions in the foreseeable future.
According to the Economist Intelligence Unit (EIU), oil earnings have historically dominated Iran’s external trade, currently generating around 80 per cent of revenue, although non-oil exports have begun to rise.
Import spending has also risen quickly, as high foreign exchange earnings and an easing of Iran’s debt repayment schedule have allowed the central bank to relax its import compression programme.
Major Australian exports to Iran (2007):
- Coal – A$57 million
- Passenger motor vehicles – A$42 million
- Medicaments (including veterinary) – A$36 million
- Wool – A$9 million
Major Australian imports from Iran (2007):
-
Fruit and nuts (fresh or dried) – A$9 million
-
Floor coverings – A$8 million
-
Construction materials – A$4 million
-
Computer parts – A$1 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
|
|