Within the visit of Alexey Ulyukaev, Minister of Economic Development of the Russian Federation, to Islamic Republic of Iran, with the invitation of Mohammad Reza Nematzadeh, Minister of Industry, Mine and Trade of I.R. of Iran,Export Insurance Agency of Russia (EXIAR) and Export Guarantee Fund of Iran (EGFI) entered into a Framework Agreement aimed at developing trade and investment between Russia and Iran. The timing of this signing follows several high level agreements between the two countries.
According to the Agreement,EXIAR and EGFI will utilize their strengths to facilitate provision of financing to their national companies active in respective countries, and cover joint transactions in third countries, which will internationally promote products and services of Russia and Iran. The Parties are also creating a common approach as to a risk sharing mechanism that may facilitate the support of trade flows in respective countries.Global trade is now more accessible than ever, but doing Import/Export business with Iran has tips you have to know. Our job is to show entrepreneurs, small to large corporations, International Import/Export traders how to take advantage of the growing business opportunities available in Iran. We do this by combining successful business models with our native experience in sales, marketing and logistics.
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Committee on International Trade
The Committee of International Trade (INTA) occupies itself with matters of European trade policy, both internal trade as well as external. Covered matters include those of services and commercial aspects of intellectual property, international trade in goods, and Foreign Direct Investment.
The EU, being the biggest collective economy in the world owes much of its success to trade and as a consequence trade lies within its fundamental and most prized values. Since the Lisbon treaty, international trade agreements and trade legislation can only be implemented with the consent of the European Parliament thusly giving the people great voice over the goods, services and partners the European Union engages in trade with.
The EU wants to help traders make the most of global trading by making the information clear.
Trading with the wider world brings growth to the EU economy and jobs for European workers.
The European Commission has the data on tariff duties, the technical requirements to trade, food
health requirements, anti-dumping and anti-subsidy duties and other issues.
Many of the trade problems which European exporters face are not just the traditional import tariffs or quotas but discriminatory or disproportionate regulations or standards.
Removing these barriers is part of the EU's strategy to boost exports and promote growth and jobs in Europe.
Trade with Iran is subject to the EU general import regime, since Iran is not a member of the WTO and there is no bilateral agreement between the EU and Iran. Iran applied to join the WTO in 1996, but there has been no agreement at the WTO to start the accession process.
Subject to the conditions set out by the EU sanctions regime, EU trade with Iran is in principle still legal, but is in practice affected by different restrictions.
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No industry is as woven into a nation’s fabric as Iran’s carpet trade.
Dating from 500 B.C., Persian rugs have long been considered the world’s finest. An estimated 1.2 million Iranians today produce hand-woven carpets, and 80 percent are shipped abroad. They can sell from $300 for a low-end 2x3 wool-and-cotton mat to $70,000 for a 15x20 silk area rug destined for mansions and hotel lobbies.
Iran’s carpet makers hailed the election of moderate President Hassan Rohani in June, and if talks with the U.S. over curbing Iran’s nuclear ambitions succeed, a longstanding trade embargo stands to be lifted.
Just as with furniture, under-40 consumers are looking for something inexpensive that will last five to six years and then they redecorate.
Persian rug wholesaler
But it now appears unlikely Persian rugs will be imported into the U.S. in significant numbers again. The primary reason: Under-40 consumers who furnished their first apartments with IKEA and their first homes with Crate & Barrel, Pottery Barn and West Elm have no taste for their ornate, traditional designs. “This is not exclusive to the U.S.; it’s been happening in Western Europe too,” says David Banilevi, a vice president and buyer for Aminco Inc., a Secaucus, N.J.-based imported-rug wholesaler. “For younger people, the emphasis on floor coverings is not as great as with the older generation who love to have a durable and finely made carpet.
“Just as with furniture, they’re looking for something inexpensive that will last five to six years and then they redecorate,” Banilevi says. “Their money doesn’t buy them as much today, so they opt for lower-priced, mass-produced, simpler items.”
Iran’s highest-quality carpets are a source of national pride, with the finest being true works of art often hung as tapestries rather than adorning floors. A 17th-century Persian rug that sold at a London auction in June ranks as the most expensive in the world, fetching $33.8 million. Their designs — little changed over two millennia — include spiral, floral, paisley and intertwined fish patterns, historic monuments and Islamic buildings.
Carpets were Iran’s primary export — until the discovery of oil — and now run a far-distant second. Rug exports stood at $560 million last year, down 17 percent from 2011. Oil exports fell 27 percent to $69 billion, the lowest since 1986, as trade sanctions continued taking a fierce toll.
Since pistachios, caviar and dried fruit are Iran’s only other major exports, rugs are its lone product that bear a distinctly “Made in Iran” label — albeit referencing Persia, its common name in the west prior to the 1979 revolution. The taking of American hostages and emergence of a hardline, religious leadership led to 34 years of hostile relations which eased only recently during discussions about reducing Iran’s nuclear capability.
Iranian carpets since the revolution have been subjected to on-again, off-again U.S. sanctions. President Clinton lifted the embargo in 2000 before leaving office, in consideration of the often poor, rural loom workers who produce them. President Obama re-imposed it in 2010 after another flaring of tensions.
Generation after generation, they’ve used the same designs and colors…I can’t call it pride. They just don’t produce modern rugs.
Like many importers, Armanrugs.com beefed up its stock before the embargo’s last reinstitution, hoping the supply cutoff would boost demand. The bulk of that inventory remains unsold.
Armanrug’s Persian rug sales have actually been declining for more than 10 years — and not because President George W. Bush demonized Iran as a member of the “Axis of Evil,” says Hassan Ghotb, the online retailer’s manager.
“We just don’t have young customers for Persian rugs,” says Ghotb, an Iranian native. “Buyers are a minimum of 40 years old.”
Iran’s artisan weavers are also confronting the same global twister that tore U.S. manufacturing asunder — cheap foreign competition. Yet the thriving output of machine-made knockoffs from China, India and Pakistan may ultimately prove less debilitating than a deeply tradition-bound, national industry’s failure to adapt.
“Generation after generation, they’ve used the exact same designs and colors,” Ghotb says. “I can’t call it pride. They just don’t produce modern rugs.”
Jeffrey DeSantis, president of the Oriental Rug Retailers of America, agrees that inflexibility threatens to cripple Iran’s standing in the rug trade. His group represents more than 70 top U.S.-based importers, wholesalers and manufacturers of area rugs from India, Pakistan, China, Nepal, Tibet, Turkey, Romania and Iran.
“Their colors and designs just aren’t current,” says DeSantis, chief executive of Cranford, N.J.-based Amici Imports. “Even when the market was there, it was impossible to get them to change their palette, and now they are way behind the curve.”
If the current talks make headway, DeSantis still doesn’t see the embargo being lifted in the near future because of the effort it will take to confirm that Iran is scaling back its nuclear program. “Trust and verify will take some time.”
If and when the embargo is lifted, the currency ebb and flow of the global market may actually see exports of high-quality Persian rugs from the U.S. into Iran exceed new imports flowing from Iran to the U.S., Banilevi says.
“Rugs I paid $2,000 wholesale for five years ago are selling there for $4,000 and $4,500,” Banilevi says. “It’s possible I may ship some back.”