Iran Wants to Use its Assets with Turkish Banks to Buy Goods
IRAN NEWS ECONOMIC DESK
TEHRAN – Iran has called on Turkey to find a way for Iran to tap into its assets with Turkish banks to purchase the commodities it needs directly from other countries through Turkish banks.
The demand was made by Iranian Minister of Industry, Mines and Trade Alireza Razmhosseini in a videoconference with Turkish Trade Minister Ruhsar Pekcan.
“Iran and Turkey are two neighboring, friendly and brotherly countries which have always had broad trade exchanges in addition to historical and cultural commonalities,” said the Iranian minister.
He said Iran-Turkey trade exchanges have hovered around $10 billion over the past five years.
“Due to the coronavirus outbreak and its impacts on business and trade, the volume of mutual trade exchanges stood at $4.3 over the second and third quarters of 2020, and we seek to increase this trade and the necessary potential exists to do that,” said Razmhosseini.
He underlined the current international situation is prepared for the enhancement of trade exchanges between the two countries.
“It is possible to promote exchanges in the trade domain and the two countries stand ready to expand their relation in that regard,” he noted.
He further added Tehran will follow up on talks held and agreements reached in a meeting of the Joint Iran-Turkey Commission back in August, so that the two countries can increase their trade within a “win-win” framework.
He said Iran needs commodities like grain, soyabean meal, oil seeds, and oil and in case Turkey produces those commodities, Iran is interested in buying them from Turkey otherwise it can provide them through Turkish intermediary companies by using its assets in Turkish banks.
Meanwhile Pekcan, for his part, said that Turkey will stand by Iran in hard times and it will prioritize foodstuff and medicines and it will lay the grounds that Iran could use its banking assets for imports of foodstuff and medicines.
He also announced his country’s readiness for enhancing bilateral trade volume based on a win-win policy and for boosting cooperation especially in the coronavirus condition.
He referred to his phone talks with Chief of Staff of the President of Iran Mr. Mahmoud Vaezi, saying that Turkey is ready to open the way for traders and entrepreneurs of both countries for enhancing the bilateral trade volume and economic exchanges.
Pekcan also pointed to the videoconference between economic officials of both countries in August 2020 and said during the videoconference both sides underlined full implementation of the approvals of the 27the joint economic commission of both countries.
He also underscored the full implementation of preferential trade agreement of both countries which was signed in January 2015.
A study complied recently by the Tehran Chamber of Commerce (TCCIM) shows Iran’s exports to Turkey suffered a considerable decline in the 10 months to the end of October mainly because a drop in crude and oil product shipments.
Excerpts of the TCCIM analysis published last week showed that shipments from Iran to Turkey had dropped nearly 74 percent year on year in October to $795 million.
The report said that the declined exports of crude and other oil products, including petrochemicals, were mainly a result of American sanctions on Iran’s energy sector.