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Afghanistan feeling the squeeze of sanctions against Iran

in Afghan Business

Afghanistan feeling the squeeze of sanctions against Iran

Iran has recently restricted exports to Afghanistan, causing manufacturers in western Herat province to suffer.

This comes amid the international sanctions imposed against Iran by the West, in a bid to force Iran to halt its nuclear program. Commodities’ prices are rising as a result of the sanctions, pressuring Iran to curb its exports to Afghanistan.

According to the Afghanistan Chamber of Commerce and Industries (ACCI) head in Herat Sad Khatibi, Iran stopped exporting flour, sugar, detergents and petrochemical to the province of Herat two weeks back.

Herat is an industrial province of Afghanistan with 200 companies currently operating in the province. Most of the companies rely on Iran for import of raw materials.

The companies are faced with serious problems, as Iran imposed the new regulations abruptly.



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  1. Larry Cohen
    Larry Cohen 25 October, 2012, 16:26

    The use of trade policy and practice to affect Afghan commerce is hardly new. Afghanistan has been directly affected by Iran sanctions for many years. OFAC (Office of Foreign Assets Control, US Dept of the Treasury) regulations mandate that US exports, including food, transiting through Iran (Afghanistan being a land-locked country, of course) require a license – not easy to procure. Ironically, US food and medicine exports to Iranian endusers during this period were exempted from the licensing requirements.

    As a result of the US trade sanctions policy, western Afghanistan, and especially Herat, became even more highly susceptible to Iranian trade policy and gamesmanship. By suffocating transit trade through Iran to Afghanistan, the United States contributed to excessive Afghan dependence on Pakistan’s mercurial transit trade behavior.

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