Iran exports nonoil goods worth 44b to Turkey in 8 months
Iran exports non-oil goods worth $4.4b to Turkey in 8 months
TEHRAN – Iran exported non-oil commodities valued at $4.4 billion to Turkey during the first eight months of the current Iranian calendar year (March 20-November 20), the head of the Islamic Republic of Iran Customs Administration (IRICA) announced.
Foroud Asgari said that Turkey was Iran’s fourth top export destination in the mentioned eight-month period.
Exporting commodities valued at $7.8 billion to Iran, Turkey was Iran’s third top source of import in the first eight months of the present year, the official further added.
Iran’s Minister of Industry, Mining, and Trade Mohammad Atabak has emphasized that enhancing trade between Iran and Turkey requires the establishment of a preferential trade agreement and the removal of tariff restrictions.
During a meeting with Turkish Trade Minister Omer Bolat and his accompanying delegation on December 13, Atabak pointed out that the trade potential between Tehran and Ankara surpasses the current volume of exchanges.
He stressed that implementing bilateral agreements, reviving preferential trade, and strengthening interactions would serve as the foundation for increasing bilateral trade, IRNA reported.
Atabak noted that the economic relations between Iran and Turkey, underpinned by deep cultural and historical ties, should yield a higher volume of trade.
The Iranian minister expressed optimism about progress in the joint cooperation framework between the two countries and referred to it as a crucial step toward boosting trade between the capitals. He added that the initial phase of this cooperation, in line with the terms of the two countries’ Joint Economic Committee, would significantly enhance trade relations.
In response to a request from Bolat concerning border crossings, Atabak highlighted that Iran’s government is working on a comprehensive plan to expand operations and extend working hours at border crossings and transit routes.
The official further emphasized that increasing trade would accelerate the implementation of facilitative trade programs. The roadmap developed in collaboration with Iran’s Trade Promotion Organization (TPO) would be pivotal in advancing the execution of these plans and deepening bilateral ties.
Atabak also welcomed the formation of specialized committees to address bilateral issues, stressing that most trade-related challenges could be resolved through the Trade Promotion Organization. He elaborated on the preferential trade agreement between the two countries, suggesting that its terms could be revisited to expand preferential trade volumes.
As a further step in improving bilateral trade, Atabak underscored the importance of joint border committees to address border issues and streamline goods exchange between the neighboring countries. He also highlighted the need to remove certain tariff barriers to increase trade flows.
Concluding, Atabak reiterated Iran’s readiness to expand cooperation with Turkey, emphasizing the industrial advantages of both countries in joint production.
On the Turkish side, Minister Bolat acknowledged that the current trade volume between the two nations does not meet expectations. He expressed confidence that with the revised cooperation framework and agreements with Iran’s Trade Promotion Organization, economic exchanges between the two countries would accelerate.
He also extended an invitation to Atabak to attend the next Economic Cooperation Organization (ECO) summit, scheduled to be hosted by Turkey in the spring of 2025. He emphasized the importance of deepening trade and economic ties within the framework of bilateral agreements, particularly focusing on collaboration among Islamic countries.
Bolat identified the joint development of border crossings, transportation routes, removal of transit restrictions, and tariff barriers as key components of further strengthening Iran-Turkey cooperation.
The upcoming ECO summit will bring together the ministers of member countries and will be hosted by Turkey in the spring of 2025.
During a meeting between a delegation of Tehran Chamber of Commerce, Industries, Mines, and Agriculture (TCCIMA) and the senior directors of the Turkish Exporters Union (TiM), the two sides explored the ways to improve and develop trade relations between the private sectors of the two countries.
In the meeting, held at the place of TiM in Istanbul, in the first week of September, the areas of development of commercial cooperation between the private sectors of the two countries were discussed and the use of advantages and capacities in the fields of tourism, food, textile and pharmaceutical industries was emphasized, the TCCIMA portal reported.
In this meeting, TCCIMA Head Mahmoud Najafi-Arab referring to the trade balance of 1.6 billion dollars between the two countries, which is also positive for Turkey, mentioned the re-export of some Iranian products through this country as one of the opportunities to optimize the trade relations between the two countries.
Recalling that Turkey has great power and experience in the field of tourism, he mentioned the use of the capacity of Turkish tourism companies to cooperate with the Iranian tourism industry and to increase the attraction of foreign tourists to Iran as another area of development of relations between these two neighboring countries.
Najafi-Arab also pointed to Iran's high power and knowledge in the textile industry and said that by setting up a joint cooperation program, the global expertise of Turkish companies can be used to strengthen the branding of Iranian products in international markets.
The TCCIMA head then pointed to the technical knowledge and expertise of Iranian companies in the pharmaceutical industry, especially in biotech drugs and probiotic industries, and emphasized on strengthening cooperation between the two countries in these sectors.
Addressing the same meeting, TiM Deputy Ahairman Ahmet Gulec explained about this large Turkish private sector union and reminded that currently 150,000 Turkish exporters are members of this union and 61 export associations of this country also form the body of this large entity.
According to him, this union covers 27 product groups in the agricultural, industrial, mining and service sectors, and supporting Turkish exporters for their greater presence in the world markets is one of the main goals of the union.
He further put the export value of Turkey in 2023 at $357 billion and the import value at $410 billion, and reminded that the country plans to rise the value of products export to $375 billion and the value of services export to $200 billion by 2028.
He called the joint investment and the construction of Turkish factories in Iran and vice versa, among the capacities of joint cooperation and reminded that the TiM is ready to cooperate and interact with the TCCIMA to strengthen and develop the exports of the companies of the two countries.
In early July, Director of Asia and the Pacific Office of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) International Affairs Department Niloufar Asadi said a Free Trade Agreement (FTA) between Iran and Turkey should replace the previous trade agreements between the two countries to boost economic exchanges.
In a meeting with the Consul General of Iran in Istanbul, Asadi referred to a previously reached preferential trade agreement between Iran and Turkey under the framework of the Group of Eight Developing Islamic Countries (D8) and said: “Considering the shortcomings of the previously signed preferential trade agreement and the necessity to improve and develop it, I suggest that a free trade agreement between the two countries replaces the previous agreements.”
During a meeting on October 29 between Iranian Minister of Transport and Urban Development Farzaneh Sadegh and Turkish Ambassador to Tehran Hicabi Kirlangiç , the Iranian minister said Iran and Turkey play a fundamental role in regional transit and freight transportation as the bridge between East and West.
According to her, the geographical position of Iran and Turkey acts as a link between Asia and Europe, opening up a priceless chance to boost regional and international freight and transit networks.
Sadegh noted that collaboration between Iran and Turkey across all domains will bolster peace and stability in the region.
Iran consistently endeavors to enhance its connections with Turkey across political, economic, cultural, scientific, and security fields, she said.
The minister considered the recent meetings between the high officials of the Islamic Republic of Iran and the Republic of Turkey as an expression of the good political relations and the strong will of the two countries to develop cooperation.
While emphasizing the readiness of the Ministry of Transport and Urban Development, as the Iranian chairman of the Iran-Turkey Joint Economic Committee, to benefit from all available capacities in order to develop bilateral relations, she wished the two great nations of Iran and Turkey, health, prosperity, happiness, security and progress.
To note, during seven months of the current Iranian year (from March 20 through October 21, 2024), more than 13.2 million tons of cargo were transited through Iran.
Transit via Iran increased by 42 percent during seven months compared to the same period last year (from March 21 through October 22, 2023).
As the former head of IRICA has announced, the value of Iran’s non-oil trade with its neighboring countries has increased 23 percent in the first seven months of the current Iranian calendar year, as compared to the same period of time in the past year.
Mohammad Rezvanifar has put Iran’s non-oil trade with its neighbors at 64.5 million tons worth $41.1 billion in the seven-month period.
He said trade with the neighbors also increased by 16 percent in terms of weight.
According to Rezvanifar, Iran exported 51.1 million tons of non-oil goods worth $20.2 billion to the neighboring countries in the seven-month period of this year, while importing 13.4 million tons of goods valued at $20.9 billion.
Regarding Iran's main export destinations among the neighboring countries, he said: “Iraq, the UAE, Turkey, Afghanistan and Pakistan were the five main export destinations of Iran among the neighboring countries.”
“United Arab Emirates, Turkey, Russia, Oman, and Pakistan were the five major sources of imports among the neighboring countries in the seven months of this year,” the official added.
MA
source: tehrantimes.com