15 Neighboring States Account for 70% of Iran’s Exports
IRAN NEWS ECONOMIC DESK
TEHRAN – Head of Iran Trade Promotion Organization says that 15 neighboring states accounted for 70 percent of Iran’s exports in the first half of the year while the figure was 55 percent in 2018 and 60% in 2019.
Hamid Zadboum said that Iran had exports worth over $24b to its neighboring states and according to the conducted studies, there is currently a 125-billion-dollar capacity for exports to 15 neighboring countries.
He added that the existing capacity has been assessed based on the history of exports of goods and needed items by the neighboring countries.
Zadboum also pointed to the 14-percent decline in international trade, adding that due to the Coronavirus pandemic in the world, most countries are currently challenging with the virus and land borders have been closed and they have faced with more declines in exports.
He added that Iran is also not an exception, adding that 20 joint land borders of Iran with neighboring states were closed in this period and it stroke a heavy blow to Iran’s economy.
Zadboum also referred to the rise in exports to the Eurasian Union member states especially to Russia and Kazakhstan during the pandemic, noting that with reopening of the land borders with neighboring states, the 50-percent decline in exports in April improved to 34% in the first half of the year.
He then explained about the great difference between imports and exports, saying that one of the reasons is the halt in export of gas to Turkey.
Zadboum said that Iran’s exports to Turkey were around $513m in the first five months of the year while the figure was $2.47b in the same period last year and this $2b difference is because of halt in export of natural gas to Turkey.
He also blamed the closure of land borders for the decline in exports, saying that the almost-two-month-closure of borders with neighboring states as well as the virus pandemic was the major reasons in the decline in exports, reiterating that Iran still faces restrictions for exports in the Turkmenistan border.
Zadboum added that despite reopening of land borders, due to the huge number of trucks in the borders, exports have faced a sluggish move in some borders due to the traffic of trucks.
On the problems related to exports, he said the most important challenge in front of exports to neighboring states is trade infrastructures and border terminals as well as lack of appropriate support of exporters by national banking system.
Zadboum also said that to increase the number of trade agreements with other states, it is necessary to reach a balance in trade exchanges.
He further said that trade restrictions with some countries that we have agreements should reduce and the imports should be directed to those countries whose imports from Iran are more.
He also blamed the large number of decision-making bodies in the country and regulations which harm the foreign trade, adding that it should be organized but in the current condition, some part of decisions are made due to the special condition of the country and restrictions for the Coronavirus and sanctions.