While sanctions were in place during that time a handful of exporters were confident enough to continue to service the Iranian market under the cover of a United Nations exemption allowing the sale of food products on humanitarian grounds.
But even that trade is under threat with Trump upping the ante significantly following his decision in May to withdraw the US from the 2015 nuclear deal with five other Western countries and the European Union.
That deal saw a brief easing of sanctions in return for Iran reining in its nuclear programme.
But in May the US gave any person doing business with Iranian ports until November 4 to wind down that contact or face secondary sanctions.
Major shipping lines such as Maersk and MSC responded immediately by notifying customers they would comply with US demands and wind down services to Iranian ports including feeder services from other Middle East ports.
No major shipping line has sailed from New Zealand directly to Iran since July.
That has been the last straw for Westland Milk Products, which counted Iran as a solid butter market for more than a decade.
Westland sales general manager Jeff Goodwin said the country is being severely squeezed by the US, which has ordered its trading partners to halt imports of Iranian oil, undermining the country’s currency and buying power.
While the market can still be serviced via third-country ports it is unlikely the extra costs can be recouped given the financial strain Iranian customers are now under.
“It all sounds pretty expensive to me once you add all those extra costs. It sounds like a complex supply chain that is going to add a lot of documentation and physical cost to get it there.”
It is the same story at Wellington-based Taylor Preston which last year became the first NZ meat company to export to Iran in two decades.
Its larger rivals including Silver Fern Farms looked closely at re-entering the market but higher prices in competing markets and nervous bankers meant they never progressed beyond initial inquiries.
In late 2016 former Trade Minister Todd McClay privately blasted the Australian-owned banks for not doing more to back the Government’s efforts to boost trade with Iran following the nuclear deal.
The banks feared heavy fines or even losing their US banking licences should they be found to have facilitated the repatriation of funds for exporter clients via Iranian banks with links to terrorist organisations.
But Taylor Preston marketing manager Chris Pyke said it is shipping rather than banking that is behind its recent decision to pull out of Iran.
“It is disappointing because we were enjoying what we were doing but we just can’t get the product there for now.”
Trump’s efforts to break Iran have not yet been enough to deter NZ’s largest exporter though.
“We have been continuing to ship product to our Iranian customers although there are practical difficulties that make exporting to Iran challenging,” a Fonterra spokeswoman said.
“With direct shipping lines to Iran having ceased, we have been utilising alternative shipping routes where available.”
One shipping broker said it is likely that is being done via the United Arab Emirates where containers can be reloaded on to Arabian freighters bound for Iran.
As well as the extra cost there is added risk of cargoes being mingled with those bound for customers in Iran that have been blacklisted by the US.
“Everybody is so nervous about it. They are terrified that they may be linked in some way.”
A lawyer with sanctions experience said ship owners, like their banking counterparts, are nervous about the potential of being hit with secondary sanctions by the US should they be found to be dealing with blacklisted Iranian individuals or organisations.
That could cut them cut out of international insurance markets, leaving them unable to insure their vessels.
While it is not impossible for exporters to continue to do business with Iran the extra due diligence required of their bankers and shipping providers has made it increasingly uneconomic.
