CEMA has started to issue a new series of country-specific Trade & Investment Reports. The first edition focuses on Iran. The aim is to collect and provide dedicated information on trade policy and market developments for the European agricultural machinery industry. Further reports will be compiled on a regular basis.
The first report provides information on the Iranian economy and agricultural sector, gathering key facts and figures. In addition, it contains an analysis of the current market situation for agricultural machinery in the country.
Iran has faced trade sanctions from the EU and US for many years. However, early in 2016, most sanctions were lifted and trade is expected to pick up in the coming years. As one of the largest economies in the region, Iran opens manifolds opportunities for the European agricultural machinery industry.
The Iranian agricultural sector grew rapidly over the last 10 years. It is characterized by many small farm holders and large state-owned farms. Partly for that reason, Iranian agriculture is still less mechanized than most European markets. However, one of the priorities of the latest Development Plan from the Iranian Government is to adopt modern technologies in the agricultural sector. Even though trade is currently easier after the sanctions have been lifted, there are still barriers to trade including import duties for agricultural machinery ranging from 5-15%.