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Iraq, other countries should bar imports of Iranian cars until Iran halts nuclear program - UANI

Business Materials 11 September 2013 13:27 (UTC +04:00)

Azerbaijan, Baku, Sept. 11 / Trend, S. Isayev

Iraq and other countries should bar the import of Iranian cars, until Iran halts its nuclear program, UANI (United Against Nuclear Iran U.S. group) Communications Director Nathan Carleton told Trend.

Latest reports from Iranian news outlets indicate that Iranian car manufacturer Saipa shares some 40 percent of Iraqi car market, and Iraq has a very large share of Iran's car exports.

This is while Iraq is not very pleased with Iran-made cars, which seem to have a lot of manufacturing flaws and this turns into a lot of road accidents.

"Countries that continue to support Iran's automotive sector are indirectly supporting the Iranian regime," Carleton said. "The entire world should take note that Iran's automotive sector is now under U.S. sanctions, due to President Obama's Executive Order."

Since a lot of car manufacturing companies have left Iran due to sanctions imposed on the Islamic Republic, according to Carleton despite the threat of sanctions, Chinese companies like Chery Automobile are attempting to fill the vacuum in the Iranian automotive sector once filled by European, Japanese, and Korean companies.

"This is unfortunate and irresponsible, however it is doubtful that these new players will be able to sufficiently make up for the exodus of the world's leading auto manufacturers and their superior products from Iran," Carleton underscored.

ISNA news agency reported in August of this year that Iranian car manufacturer will be manufacturing a Chinese car, which is based on a Japanese car model.

Earlier in August Iranian media outlets informed about an agreement among two major Iranian auto production companies and Chinese auto companies on production of Chinese cars in Iran.

According to the agreement, each of the Iranian two car production companies will manufacture one Chinese car model in their subsidiaries.

Iran's auto sector hopes to neutralize U.S. sanctions effects with Chinese companies' help, while experts argued that, cooperation with Chinese auto production companies is a short term solution and will not be effective in long term.

In an executive order, the U.S president approved sanctions against people who do business with Iran's auto sector, which the White House said was a major source of revenue for Tehran.

The order authorizes sanctions against those who sell, supply or transfers to Iran goods or services that aid in making light and heavy vehicles such as passenger cars, trucks, buses, minibuses, pick-up trucks and motorcycles.

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