The easing of United Nations sanctions against Iran in 2016 has created export opportunities for New Zealand. There is significant scope for increased trade, but care is needed.
The Government puts its shoulder to the wheel
Since United Nations sanctions were eased in 2016, there has been an uptick in government-to-government contact between New Zealand and Iran. The latest visit was by Minister for Primary Industries Nathan Guy early this month.
While in Iran, Minister Guy witnessed the conclusion of a Meat Agreement between the Iranian Veterinary Organisation and the New Zealand Ministry of Primary Industries and the signing of a Statement of Intent between Zespri and Iran's Ministry of Agriculture.
These developments are commercially significant. Iran, with a population of over 80 million people, is the second largest economy in the Middle East-North Africa region. It was among New Zealand's top five export markets for lamb in the 1980s and remains a critical market for New Zealand butter.
Other recent political contacts include:
During Dr Zarif's visit in 2016, the New Zealand Export Credit Office (NZECO) signed an arrangement with the Export Guarantee Fund of Iran (EGFI) designed to help facilitate economic cooperation between the two countries.
Dealing with financial institutions in Iran
The lifting last year by the US Government of secondary sanctions which constrained the engagement of non-US banks in financial transactions with Iranian individuals and entities has removed an obvious impediment to trade – although problems remain.
On the plus side, there is now far greater scope for non-US banks to legally process Iranian payments. They may transact with Iranian financial institutions not on the US Treasury's List of Specially Designated Nationals and Blocked Persons (SDN List). According to the US Treasury, the institutions removed include most Iranian financial institutions.
However:
It is also important for companies to be aware that in the event of significant non-performance by Iran of its commitments under the Joint Comprehensive Plan of Action (JCPOA) pursuant to which United Nations sanctions were lifted, those sanctions will “snapback" and be re-imposed. The US has committed not to retroactively impose sanctions for legitimate activity undertaken before the date of re-imposition of sanctions, and OFAC has indicated that if a snapback occurred, it would work with non-US companies to minimise any impact on that legitimate activity.
In addition, there are autonomous (i.e. non-United Nations) US sanctions related to terrorism and human rights violations, as well as questions about how aspects of the OFAC guidance relating to the lifting of the United Nations sanctions is to be interpreted.
In recent weeks, the Trump Administration has imposed new sanctions on persons or organisations which procure technology or materials to support Iran's ballistic missile programme or have links to Iran's Islamic Revolutionary Guard. While this is unlikely to have any real impact on New Zealand companies looking to export to Iran, it may have a cooling effect on banks already reluctant to update their risk profiles to reflect the new regulatory environment outlined above.
Chapman Tripp comment
Pursuing opportunities with Iran will not be straightforward – Minister McCully noted only last week that while the Government is seeking to deepen economic ties with Iran, remaining banking restrictions make this “a bit difficult".1
It has been reported that Western banks have been hesitant to deal with Iran, due in part to concerns about whether doing so might cause them to run into problems with the US Treasury. But OFAC released guidance in 2016 that should give banks some comfort that they can structure transactions so as not to fall foul of the sanctions that remain in place.
Those remaining sanctions must be carefully managed. But they should not stop businesses from working with their financial institutions to investigate ways of accessing the Iranian market or increase their exports to Iran.
Undertaking thorough due diligence both on the part of exporters and financial institutions will be critical. But the potential prize may be well worth the effort. If you need guidance understanding the risks, and how to mitigate them, please contact a member of our expert team.
1“Government hopeful of free-trade deal with Gulf states this year – McCully", www.stuff.co.nz, 7 March, 2017.
| A ChapmanTripp release | March 16, 2017 ||
University of Auckland and Victoria University of Wellington have put their academic shoulders to the wheel in backing Newsroom online alternative to print media.
Their other foundation partners include auto company Holden and telecommunications lines outfit Chorus.
The association will allow the US auto manufacturer Holden a fresh opportunity to counter the Japanese auto manufacturers which dominate branding on the free-to-air television channels.
Chorus, which is restricted to wholesale activities only, will benefit from additional use of its telecommunications circuits.
It is unsure at this stage if the two universities will contribute from an investment point of view, supplying content, or both.
The universities have long resented what they see as a failure by the daily newspapers in both Wellington and Auckland to give their universities the coverage that they believe they deserve.
Newspapers have long been disappointed by their circulations in universities. In recent years the dailies have clamped down on publishing learned academic articles. More sensitively still, they have ignored requests from the universities to publish their copious degree allocations lists and other such honoraria.
They have dropped their educational roundspeople as part of general belt tightening, thus exacerbating the resentment
Newroom meanwhile indicates that it will have a full time editorial staff approaching in numbers that of a New Zealand metropolitan daily.
The original Newsroom began as a lunge into vertical markets by the NZX. The high-end web aggregator was then acquired by information technology interests which then in turn aggregated it with Scoop, the pioneering New Zealand online challenge to the dailies.
Results were mixed. Scoop stayed in Wellington. Newsroom gravitated to new parentage in Auckland that groomed it for its current apotheosis as a multi-funded direct challenge to the dailies.
There has been talk of the unflappable family-controlled Dunedin-based newspaper chain centred on the Otago Daily Times being involved. This makes sense because Newsroom will require print pick-up.
The failure of Newsroom Versions: 1&2, and also of Scoop to get print pick up was a signal factor in their struggles.
Newsroom Version 3 must have pick-up disseminated through print to let the public at large know that it exists in the first place.
There is mention of dickering with the Wellington based chain Fairfax in exchanging stories. But whatever the stated reason, the real one will be pick-up.
The new Newsroom is unlikely to get it from NZME’s daily NZ Herald or its radio stations.
NZME which has especially aroused the indignation of its university simply by ignoring it gives all the signs of being the target-in-chief for this curious merger of industry and academia.
| From the MSCNewsWire reporters' desk || Friday 17 March, 2017 ||
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Sanitarium Health and Wellbeing has appointed Rob Scoines as general manager for its New Zealand operation.
Mr Scoines, who most recently served as general manager for Logistics at Sanitarium Australia, brings 40 years of experience in a variety of roles such as accounting, HR and manufacturing in different locations, including Auckland. As general manager for Logistics, he led Sanitarium Australia to be considered a preferred supplier by its trading partners over the past 10 years.
"We’re the country’s number one breakfast food manufacturer and this offers the church a unique opportunity to make a positive impact in the community."
“I believe Rob will bring excellent leadership to this role,” said Sanitarium CEO Kevin Jackson. “He has what it takes to grow a high-performing team as we continue sharing our message of health and hope for a better life in New Zealand.”
Beyond the workplace, Mr Scoines accomplishes remarkable feats of endurance in ultra-marathon events and his passion for making a difference in the community is well known, whether he’s raising funds for a worthy cause or taking part in his local church’s Road to Bethlehem program.
“I see leadership as a privilege,” Mr Scoines said. “It’s the opportunity to positively impact people as they grow and develop while they in turn make an impact on the business and the community. We’re the country’s number one breakfast food manufacturer and this offers the Church a unique opportunity to make a positive impact in the community. I’m honoured to lead the team that’s going to make the most of that opportunity.”
Mr Sciones takes up the role immediately, replacing Pierre van Heerden, who announced he was stepping down as general manager at the end of 2016.
In the last financial year, Sanitarium New Zealand achieved a sales turnover of $150m and provided more than 500 million serves of healthy products for consumers.
| A Sanitarium release | March 17, 2017||
Raise ye the stone or cleave the wood to make a path more fair or flat;
Lo, it is black already with blood some Son of Martha spilled for that!
Not as a ladder from earth to Heaven, not as a witness to any creed,
But simple service simply given to his own kind in their common need.
-From Rudyard Kipling’s The Sons of Martha, 1907
For as long as humans have been around, we’ve had an obsession with being first. Hillary and Norgay are immortalized as the first to conquer Everest. Neil Armstrong will forever be remembered as the first to walk on the moon. And any internet comment section will demonstrate the compulsion to claim this same singular achievement: First!
Naturally, we can’t help but wonder who it was that pioneered our profession.
Who was the first engineer? Let’s review some of the candidates.
Imhotep (2650 – 2600 BCE)
A statuette of Imhotep on display in the Louvre. (Photo courtesy of Hu Totya.)
Imhotep was chancellor to the Egyptian pharaoh Djoser, and his engineering claim to fame is the design of the Pyramid of Djoser. Located in the Egyptian necropolis of Saqqara, the Pyramid of Djoser was the first of the now-famous Egyptian pyramids.
The Pyramid of Djoser is a step pyramid, consisting of six mastabas (sloping rectangular prisms) layered one on top of another, in contrast to the smooth face of the more familiar Great Pyramid of Giza. The limestone-based step pyramid reaches 62 meters (203 feet) high, with a base measuring approximately 109 by 125 meters (358 by 410 feet).
> > > Continue here to view the full article with images | March 16, 2017 ||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242