The use of Canadian standards and branding is helping Iranian exports reach third countries and could prove a “game-changer” for Tehran’s international trade, a leading Iran-Canada trade official said on April 30.

Speaking with IntelliNews at the Iran Expo 2025 in Tehran, Mohammad Vahidi-Rad, head of the Canada-Iran Business Association, said that Iranian manufacturers are increasingly exporting goods labelled under Canadian brands that meet Canadian quality standards, particularly to African markets such as Nigeria.

Manufacturers across the Islamic Republic have recently gained a sense of optimism following talks between the US and Iran, which proved positive, surprising many. Many expected the negotiations between Iran's Foreign Minister Abbas Araghchi and Trump envoy Steve Wiktoff to go nowhere. Still, they have become a fixture in recent weeks with the rial gaining more than 10% against the dollar in recent trading.

“Once you’re certified to Canadian standards, you’re good to go,” Vahidi-Rad said, referring to what he called the “Level-Up Standard Law” used by several countries. “It makes the entry into these markets much smoother.”

Founded in 2015, the Canada-Iran Business Association acts as a commercial intermediary for over 730 Iranian exporters. Beyond facilitating exports to Canada—currently around $7mn monthly in declared FOB value—the group has also developed a two-pronged strategy. On one end, it provides branding and standardisation support for Iranian producers looking to access Western and African markets. On the other, it works to shift parts of Canadian production offshore to Iran through what it calls the OM method (outsourced manufacturing), which has helped revive nearly 40 dormant production units inside the country.

Such an approach has attracted increasing interest from Iranian producers, who see Canadian certification as a passport to wider global access, he said.

“We’ve got an Iranian company right now exporting to Nigeria, but it’s selling under a Canadian brand,” said Vahidi-Rad. “It’s made in Iran, meets Canadian standards, and that’s what the buyer sees.”

While several export items are exempt from sanctions, regular trade flows remain complicated and convoluted due to weak logistics and inconsistent customs registration abroad. One of the significant hurdles Iranian companies often face internationally is finding appropriate shipping agents and insurance brokers in foreign locations who are frequently hesitant to deal with goods originating from Iran. 

“We’re not always on the books,” Vahidi-Rad said, citing cases where Iranian exports transit via Turkey or the UAE but are logged under those countries rather than Canada or Iran.

Canada reported bilateral trade with Iran at around $220mn in 2020, he said, citing official Canadian data. Iranian figures often show less, partly due to indirect shipment paths and regulatory blind spots.

Trade has declined since 2020, but Vahidi-Rad believes volumes could bounce back fast—especially if financial sanctions are lifted and direct banking channels restored.

“If SWIFT comes back, the numbers could jump tenfold,” he said, calling the current workaround system via currency exchanges and regional intermediaries a “leaky faucet.”

Iran’s export potential to Canada is also buoyed by its large diaspora. Canadian census data indicates over 330,000 people in that country speak Persian, with many looking to emigrate due to favourable immigration policies to Iranian passport holders, often shunned elsewhere due to the status of their government. 

This community is fuelling demand for Iranian goods—everything from car motor oil to high-end furniture from Tabriz and Ardabil—especially when labelled with Canadian standards. “It just builds trust,” said Vahidi-Rad.

Support from Iran’s Trade Promotion Organisation (TPO) and the Ministry of Economic Affairs has helped amplify these efforts. Since December 2024, several cooperation agreements have been signed with the private sector, with several others currently in place in the country. Notably, a tractor export agreement was signed with African countries on April 29.

The government has also streamlined IP registration and market entry for foreign-linked companies operating domestically, he said.

“If this momentum keeps up,” Vahidi Rad predicted, “exports to Canada could easily double or triple by next year.”