TEHRAN (Iran News) –Secretary General of Iran-Iraq Joint Chamber of Commerce Jahanbakhsh Sanjabi says Iran’s exports to Iraq in the first five months of the current Iranian year have declined and reports on the rise of exports are questionable.
Speaking to ILNA, Mr. Sanjabi said that unfortunately Iranian goods after removal of the subsidized dollar rate of 4200 tomans saw rise in prices above the international prices and the first reaction of purchasers after the delivery was to resist and refrain to buy.
He confirmed the reports on decline in Iran’s exports to Iraq in the first five months of the current year and said that the assumption of rise in trade volume with Iraq in first five months is not true and one should look at it with doubt.
He reiterated that the rise in the foreign trade volume is just because of rise in prices, adding that Iran has exported some 44.1m tons of goods that earned the country some $20.9b while Iran’s exports were 45.6m tons in the same period last year and figures show that Iran’s exports have declined over 1.6m tons in terms of weight.
Sanjabi reiterated that the country exported some $17.2b in five months and the figure shows that although there has been 21% growth in the exports of goods in terms of value, the exports have declined 3.5% in terms of weight and this difference is because of the rise in the global rise in prices.
He noted that Iraq is considered as Iran’s second trade partner that 31.38m tons out of 44.1m tons of Iran exports belong to Iraq, adding that China, Iraq, the UAE, Turkey and India are Iran’s top five trade partners, respectively. He added that it means Iraq accounts for 19.64% of Iran’s total exports in terms of weight and 14.15% in terms of value.
He said that last year in the mentioned period, exports to Iraq accounted for 26.61% of Iran’s total exports in terms of weight and 18.67% in terms of value and therefore exports to Iraq have declined both in terms of weight and value.
Sanjabi reiterated that comparing the statistics regarding exports to Iraq in recent two years shows that Iran has exported 8.665m tons of goods to Iraq while the figure was 12.152m tons in the same period last year. He said that the value of exported goods to Iraq in the first five months of last year $3.22b while this figure has been $2.961b this year which bespeaks of 8% decline in terms of value and 28% in weight.
He noted all working hard to increase exports at least to last year’s level and even more than it.
He reiterated that if inflation continues rising in Turkey in the second half of the year, Iran can restore its market in Iraq which has been lost due to elimination of 4200-toman dollar rate in Iran.
He admitted elimination of preferential forex rate in Iran caused Iran’s goods to lose Iraq market especially in the diary and noodle sectors.
Meanwhile Iran’s Deputy Foreign Minister for the Economic Diplomacy Affairs on Sunday considered country’s trade with Iraq ‘very important’ and put Iran’s exports value to neighboring Iraq at about $14 billion.
Speaking in a session of Iran’s Foreign Economic Relations Coordination Headquarters with a focus on the latest measures taken for organizing the Exclusive Exhibition of the Islamic Republic of Iran in Turkmenistan capital of Ashgabat and reviewing the latest situation of economic relations with Iraq, Mehdi Safari the Deputy Foreign Minister for the Economic Diplomacy termed organizing this exhibition and active participation of the private sector and commercial envoy of the country in this fair ‘very important’.
He went on to say that active participation of Iran’s private sector will spur export and boost trade balance to Turkmenistan as well.
Preliminary agreements have been reached with Turkmen side regarding the export of technical and engineering services to this country, Safari added.
Considering the trade between Iran and Iraq, the Deputy Foreign Minister termed Iran’s trade with Iraq as ‘very significant’ and put the total exports value of the country to this country at about $14 billion
He then pointed to the shared border crossings with Iraq and put the volume of Iran’s exports to Iraq at about $14 billion.