weighted score 6.9 · nine dimensions
Country Risk Profile
Iran
Sourcing risk, regulatory exposure and audit intelligence for Iran-origin supply chains.
Forced & child labour
5
Afghan migrant workers systematically vulnerable. Documented forced labour in construction, agriculture, and carpet weaving. ILO engagement limited by sanctions and access restrictions.
Worker rights & FOA
7
Independent trade unions banned. Freedom of association suppressed. Workers' protests met with security force response. December 2025 protest wave included labour grievances.
OHS & audit transparency
6
Occupational safety standards exist on paper but enforcement limited. Independent audit access effectively impossible for foreign buyers due to sanctions and government restrictions.
Food & product safety
5
Food safety regulatory framework functional but degraded by sanctions-related import substitution. Quality assurance for exports effectively irrelevant under current sanctions regime.
Environmental & regulatory
4
Severe air pollution in Tehran and industrial cities. Water crisis in multiple provinces. Environmental enforcement weak. Lake Urmia ecological collapse ongoing.
Governance & anti-corruption
9
TI CPI 2025: 23/100. IRGC economic conglomerates control an estimated 20-40% of the economy. Systemic corruption across government procurement and resource allocation.
Tariff & preferential access
9
Comprehensive EU sanctions prohibit most trade. No GSP, no FTA. US secondary sanctions create additional deterrent for any entity considering Iran trade.
Non-tariff barriers
9
Sanctions create near-total trade barrier. Banking, insurance, and shipping restrictions make commercial transactions extremely difficult even for non-sanctioned goods.
Supply chain traceability
8
Traceability infrastructure non-existent for export purposes. Shadow economy and sanctions evasion networks create deliberate opacity. Origin concealment is systematic.
Labour & Social Risk
Labour & Social Risk
- Forced labour risk
- Forced labour documented among Afghan migrant workers, particularly in agriculture, construction, and brick production. Afghan refugees and undocumented migrants are systematically vulnerable to exploitation.
- Sectors at elevated risk
- Construction, agriculture, carpet weaving, brick kilns. Afghan migrant workers — estimated 2-3 million in Iran — are particularly exposed to wage theft, document confiscation, and forced deportation threats.
- Audit limitations
- Independent social compliance audits are effectively impossible due to sanctions restrictions and government access controls. No credible third-party audit infrastructure exists for foreign buyers.
- ILO conventions
- Iran has ratified C029 (Forced Labour) and C138 (Minimum Age) but has not ratified C087 (Freedom of Association) or C098 (Right to Organise). Independent trade unions are banned.
EU Regulatory Exposure
EU Regulatory Exposure
- Sanctions status
- EU snapback sanctions reimposed September 2025 following JCPOA termination (October 2025). Comprehensive EU sanctions cover oil, petrochemicals, metals, banking, insurance, and shipping. Most trade with Iran is prohibited or requires specific authorisation.
- Trade composition
- EU-Iran trade is near zero under sanctions. Pre-sanctions trade was dominated by crude oil. Any residual trade requires sanctions compliance verification and is subject to secondary sanctions risk from the US.
- EU Forced Labour Regulation
- Regulation (EU) 2024/3015 applies from December 2027. However, comprehensive EU sanctions already prohibit most Iran-origin imports, making the forced labour regulation secondary to sanctions compliance.
- Anti-corruption
- TI CPI 2025: 23/100. Iran ranks among the most corruption-affected countries globally. IRGC economic conglomerates control significant portions of the economy, creating systemic governance risk.
Logistics & Supply Chain
Logistics & Supply Chain
- Primary export corridor
- Persian Gulf ports (Bandar Abbas, Bushehr) via Strait of Hormuz. Oil exports predominantly to China at heavily discounted prices ($7-8/barrel discount).
- Key transit chokepoints
- Strait of Hormuz (critical — Iran controls northern shore)
- Sanctions impact on logistics
- International shipping lines, insurers, and banks will not service Iran-bound or Iran-origin cargo due to sanctions risk. Shadow fleet and ship-to-ship transfers are used for sanctioned oil exports.
- Infrastructure status
- Domestic infrastructure degraded by decades of underinvestment under sanctions. Chabahar port (Indian-developed) is a partial exception but remains under US sanctions scrutiny.