Trade could also be complicated as Canada does not have a formal trade agreement with Iran. Canadian businesses should look for opportunities to do business in Iran to broaden their horizons.
Iran, which has a population of around 75 million, could be a lucrative destination for Canadian businesses to plan expansions.
Many European countries have sent trade missions to Iran’s capital, Tehran. France has even placed an order of 118 Airbus jets. However, trading with Iran remains murky for Canadian firms as Ottawa has not officially lifted sanctions.
There are many industries in Canada which could benefit from doing business with Iran; these include Agri-foods, construction, natural resource, health and beauty products. Service providers, too, could gain from these opportunities.
However, there are various steps to be taken to realise this potential. Once sanctions are lifted, there would still be some restrictions that would be essential to comply with.
There are also things that Canadian business should look into before starting trade such as shipping, regulations and customs restrictions and rules. This could also be complicated as Canada does not have a formal trade agreement with Iran.
Engaging services of customs brokers who have experience in the Middle East could help businesses, trade commissioners from global affairs Canada too will be more active in this area once sanctions are lifted, leading to more resources.
Iran is not a member of the World Trade Organization (WTO). However it does have a long history of trading and will be more than willing to promote trade between the countries. It is also important to know about their cultural practices to not offend them.
As Canada’s trade with the Middle East remains on an upswing, tapping the potential of the Iran market could lead to successful businesses, and relationships like Canada enjoys with Turkey and UAE. Markets in Iran could give Canadians a new and exciting chance of expansion.