Canada lifts economic sanctions against Iran

Canadian Businesses Will Benefit From Prime Minister Justin Trudeau Lifting Sanctions but It Is Not Without Risks for the Liberal Government According to Experts.

Economic sanctions are various forms of trade barriers and restrictions on financial transactions. Canada recently lifted the sanctions it had against Iran, thus opening up a new trade arena for the country.

Canadian businesses will benefit from Prime Minister Justin Trudeau lifting sanctions but it is not without risks for the liberal government according to experts.

All sanctions against Tehran were lifted earlier this month thus paving the way for non-military exports to the country.

Canada’s foreign affairs minister Stéphane Dion, spoke in support of the nuclear agreement hashed out last year that faced deep opposition from the former Harper government. The deal was between Iran and the P5+1 countries — the U.S., the U.K., France, China, Russia and Germany.

However, Iran is still listed as a state sponsor of terrorism and conservative critics have referred to the government’s move as “irresponsible” and “disappointing.”

Iran will now be able to repatriate more than $100 billion in assets which it has held abroad, including funds in Canada that were frozen in an effort to punish Iran for trying to expand its nuclear capacity.

There are some fears that with sanctions lifted, the money could be used by the country to propagate its interests that could be unsavoury to Canada at best or help terrorist organizations at worst.

“We all know Iran’s record of support for Hezbollah and Hamas, its constant agitation in the Gulf region, especially in Bahrain, Yemen and Saudi Arabia, as well as the continuing calls for the destruction of the state of Israel, and its denial of the Holocaust by the supreme leader,” Foreign affairs critic Tony Clement said.

Canadian businesses could benefit from the move and already have plans for post sanction deals.

The Canadian Chamber of Commerce has already welcomed the lifting of sanctions as ‘good move for the economy’.

“Now that we have confirmation by the International Atomic Energy Agency that Iran has fulfilled all necessary commitments, it is only normal that we should move in the same direction as our allies and lift these economic sanctions,” said Perrin Beatty, the president of the group.

The previous government’s moves could slow things down a bit. It remains unlikely Iran would be open to restoring diplomatic relations with Canada unless some of its anti-Iran laws are removed.