New Zealand's leading exporters worry about the implications of exporting to Iran after the United States President warned of penalising those that associate with the country, the trade minister says.
Photo: RNZ / Kim Baker Wilson
US President Donald Trump yesterday announced the US will abandon its multi-lateral nuclear deal with Iran, which limited Iran's actions on nuclear weapons, and reimpose sanctions.
Mr Trump also threatened that countries which continued to trade with Iran and helped it on its quest to attain nuclear weapons would be "strongly sanctioned".
New Zealand exported $120 million of goods to Iran last year, with dairy products making up three-quarters of that. Imports totalled $6.8 million, with dates contributing over half.
Minister for trade and export David Parker told Morning Report it was still unclear to the nations who remained in the nuclear agreement what the consequences of associating with Iran were.
"It's not yet clear to us or to Europe what that means in respect of existing export levels in the eyes of the United States," Mr Parker said.
"We acknowledge some of the United Sates' frustrations in the Middle East" - Minister for Trade David Parker
While uncertainty remained over consequences for trade with Iran, Mr Parker said the government was aware of the complexities approaching and the budget specifically allocated more money to the ministry.
"It is yet another example of the real complexity in shifting sands in relation to trade and other foreign affair issues at the moment which is one of the reasons why the government has put more money into the budget line for Ministry of Foreign Affairs and Trade because we have to look after New Zealand's interests," he said.
Representatives in the industry had already expressed their concern about difficulties exporting to Iran, the minister said.
"I heard one of the primary industry representatives postulating that it might mean, if nothing else, that it's more difficult to increase exports to iran who, of course, used to be a much larger trading partner of New Zealand than they are even now," he said.
Despite Mr Trump's caution, Mr Parker said New Zealand's government was unchanged over their position on the nuclear agreement with Iran.
"We favoured the deal because we thought it was important to try and prevent nuclear proliferation in the Middle East. We would prefer that the deal stick," he said.
New Zealand businesses were being advised to seek independent legal advice.
Following the United States' withdrawal from the pact, unrest has hit the Middle East with Saudi Arabia's foreign minister Adel Al-Jubeir telling CNN that the country would also build nuclear weapons if Iran restarted its uranium enrichment program.
"We will do whatever it takes to protect our people. We have made it very clear that if Iran acquires a nuclear capability we will do everything we can to do the same."
In Mr Trump's announcement of the withdrawal from the deal he said the agreement was "defective at its core."
"This was a horrible one-sided deal that should have never, ever been made," Mr Trump said at the White House. "It didn't bring calm. It didn't bring peace. And it never will."