Assessments by the Federal Statistics Bureau of Germany show that due to the refusal of German companies to deal with Iran after the US sanctions, Germany’s export to Iran has dropped by almost half in the first six months of 2019 compared to the same period last year.

According to Reuters, the report indicates that the export of German goods to Iran has dropped by 48 percent, to 678 million euro, since January of this year compared to the same amount of time in 2018. Imports from Iran have also dropped by 43 percent, down to 100 euro million.

BGA trade association writes in its report: “The fact that trade between Iran and Germany has dropped this much is unfortunately not surprising.”

“German companies are faced with two choices of the American market or the Iranian market. It is obvious which would be the priority for them,” the report continues.

After the US exit from the landmark nuclear deal with Iran known as the Joint Comprehensive Plan of Action (JCPOA), President Trump reinstated heavy sanctions on Iran that were lifted after the deal.

Germany, France, and Britain, three European parties to the JCPOA have attempted to create a new financial channel for trade with Iran known as INSTEX in order to save the nuclear deal.

If the channel becomes operational, it will facilitate the trade of goods such as medicine and food that are not included in US sanctions. However, the Islamic Republic officials have demanded the channel to be used for oil trade as well.