Trade oppurtunities between the EU and Iran after the nuclear framework agreement in Lausanne

Abstract

This paper analyzes the undervalued trade potential between European Union and Iran in the aftermath of recent nuclear deal framework in Lausanne (2 April 2015). It focuses on advantages of a possible agreement between two parties which can empower international firms to operate easier in Iran and have access to its huge market by reducing trading, banking, and energy sanctions. Authors made literature analysis, reviewed the EU and Iran trade policy, probed international statistics and calculated trade indexes in order to investigate the potential of bilateral trade between two economies. The study revealed that trade balance between EU and Iran is negative, trade concentration is low and has both intra-industry and inter-industry features. So the relations between the European Union and Iran have considerable potential and should be based on a foundation of healthy pragmatism.