TEHRAN (Iran News) – Iran Seeks Barter Trade With Brazil. Chairman of the Board of Directors of Iran-Brazil Joint Chamber of Commerce Seyed Fakhredin Amerian said that due to the current problems, the ships are cooperating with Iran based on the credit and unload their cargos, and for this reason the import of the livestock inputs is decreasing and details of these problems have just been handed over to the Ministry of Agriculture.
Speaking to ILNA, Amerian went into details of the latest development in the trade between Iran and Brazil, and said since the container ships do not enter Iran water directly and they go to Jabel Ali Port in Dubai and there they are cross-stuffed, there are no idea on the exact statistics on the trade of the two countries. He added but it is estimated that Iran’s exports to Brazil is less than $100m that major part of it relates to urea, petrochemicals, hand woven carpet, pistachio, raisins and foodstuff.
He noted but Iran’s major basic goods are provided via Brazil but since bills of lading are destined to Dubai or other destinations and there they are changed, there are no exact figures on the trade volume of the two countries but it is estimated Iran’s exports from Brazil are valued at $4b annually. Mutton, beef, chicken, soya, corn and edible oils are major imports of Iran from Brazil, he said.
He noted due to these problems, the vessels only cooperate based on the credit and for this reason the amount of imports of livestock inputs is declining. Amerian reiterated that Iran’s trade with Brazil this year has not changed considerably comparing to the past year but last year Iran’s export of urea to Brazil was more but the amount was not considerable.
On the launch of direct shipping line between Iran and Brazil, he said cargo ships enter our ports directly but their container ships avoid entering directly and they go first to Jabel Ali Port and from the port around $6,000 the containers are shipped to Bandar Abbas. He said transfer of each container costs and Iran has to pay it twice to have it in Iranian port. It means the cost of transportation will be doubled because of the lack of the direct shipping line, he noted.
Amerian went on to say that this problem can be resolved, adding that giant shipping lines may refrain working with Iran but the Chinese, Japanese and other Asian countries which have smaller shipping companies can work if the government steps in and signs a contract with them.
He noted most of Iran’s imported chicken meat is coming from Brazil and it can be imported directly which will be better in terms of health and economy. He said unfortunately to date, no action has been taken for the launch of the direct shipping line and the trade exchange is still being cross-stuffed. He claimed the reason for this passiveness is not lack of ship but is because of passiveness of the related officials.
He went on to say that next month, the Iran-Brazil Joint Commercial Chamber’s office will be opened in Sao Paulo of Brazil and it is the same Iran-Brazil Joint Chamber of Commerce. Through this office both chambers will cooperate and will link trade of the two countries.
Amerian stated that the chamber is working to advance the idea of bartering trade with Brazil in order that Iran could import its basic goods on the base of barter to avoid banking problems. He reiterated that one of the goals of the office in Sao Paulo is to convince at least one shipping line to have direct shipping to Iran.
He also urged the government to barter petrochemical in exchange of basic goods because Iran has problem for getting its money for its exports and barter trade is some way for repatriating the money.
Amerian concluded that the private sector can resolve most problems and each trader should be allowed to have export which can help the country.