America's demands mainly affect German companies
Within 180 days, companies have to do their trade with Iran , otherwise sanctions will apply. This demand is made clear by the US State Department and by US Ambassador Richard Grenell.
America enforces unilateral termination of the Iran Agreement. After reaching the target, the nuclear sanctions were shut down according to contract. The re-activated sanctions mainly hit non-US companies, said embargo expert and lawyer Erich Ferrari. As a result, American sanctions primarily affect German companies that do not comply with the claims from Washington. The sanctions purport to put on a list those companies with which US companies are not allowed to trade. This would exclude affected companies from all dollar transactions . It is rarely possible to enforce so-called "secondary sanctions" says Ferrari: Normally, non-American companies comply with the requirements of the United States. Whereas in earlier times German exports to Iran were only about 0.2 percent , exports have been steadily rising since 2015. This increase in exports is due to the easing of sanctions and the conclusion of the nuclear agreement , and has become particularly noticeable over the last two years. Exports in 2017 already amounted to 16 percent and thus corresponded to an amount of around 3 billion euros .
The business associations DIHK and BDI advise the Federal Government and the EU to protect the export business . "The prospects, however, are clouded by the previous year," said BDI President Dieter Kempf. Should the EU and other partners invoke the agreement, the demands of the United States can have significant consequences for export trade. European big banks with America business had already refused loans for Iran businesses . BDI President emphasized: "Companies with Iran business are experiencing dramatic pressure from US government pressure." The business associations call for compliance with the demands. The United States is the only country that envisages and will implement "secondary sanctions" . As a result , the business associations are worried about the momentum of the trade.
However, the engineering association VDMA estimates the situation even less risky with regard to the claims: "As long as the sanctions against Iran by the EU are not reactivated, legal Iran business for the German economy continues to be possible, " said Chief Executive Thilo Brodtmann. German machinery exports amounted to around 900 million euros last year. However, the mechanical engineering industry would be particularly affected by the implementation of the demands of America. In addition, the demands are also not limited to the machinery industry. If the US sanctions are enforced, then Siemens, Airbus, BASF and PSA have to expect significant losses.