Production of home appliances in Iran cost 30% more due to sanctions
The costs of home appliances production in Iran has increased by some 30 percent due to US sanctions, said member of Iran Home Appliances Association Navid Izadpanah, Trend reports via ILNA.
"Along with that, Iran has lost its market share in Saudi Arabia," he said.
"Our marketing team was successful in reaching that market, and we had an annual export of appliances there worth some $20 million, however after the cut in ties, we lost that market," said Izadpanah.
"Export depends on diplomacy, but sanctions created obstacles, so we can't even obtain a visa. Sanctions have increased the cost of production, and this in turn raised the commodity prices," he explained.
"There is a production surplus regarding home appliances, but the sanctions prevent exports, and this is real damage," he said.
Iran's ban on home appliances imports has led to price hikes yet they continue to be smuggled into the country. A total of $215 million worth of home appliances were imported into Iran during the last fiscal year (March 21,2018).
Izadpanah also said that additional problems emerged related to FATF (Financial Action Task Force).
"For successful exports we need strong financial and transportation channels, to bring in currency revenues," he explained.
The anti-money laundering organization had given Iran a final deadline of February 2020 to comply with international norms after which it would urge all its members to apply counter-measures.
"I can not comment on FATF, but any mechanism that can be helpful to us regarding money transfers, would affect the prices on goods," he said.