Iran, Kazakhstan Aim for $3b Trade

TEHRAN (Iran News) The President of the Iran Chamber of Commerce, Industries, Mines, and Agriculture, Samad Hassanzadeh, highlighted the geographical and cultural ties between Iran and Kazakhstan, stressing that these factors should facilitate stronger trade relations. However, he noted that the current trade volume does not reflect the full industrial and commercial potential of the two countries.

Hassanadeh pointed out Iran’s imports of agricultural products and semi-assembled engines from Kazakhstan and emphasized that Iran’s diverse production capabilities could lead to an expansion of exports to the Central Asian country.

He stated that Iran has significant capacities in various industries, including food processing, petrochemicals, engineering services, infrastructure construction (roads, bridges, tunnels, and dams), refinery development, pump and electromotor manufacturing, medical equipment, handicrafts, handmade carpets, building materials, mining projects, home appliances, textiles, and power plant construction. Each of these sectors, he noted, could serve as a foundation for bilateral cooperation.

Despite multiple cooperation agreements between Iran and Kazakhstan, Hassan-Zadeh expressed concern that many of these agreements have not been effectively implemented.

Additionally, he called for better planning to boost tourism and trade delegations between the two nations, given the recent visa waiver. He also suggested increasing student exchanges, including Iranian students studying in Kazakhstan and scholarship programs for Kazakh students in Iran, to enhance scientific and educational collaborations.

He stressed that resolving transportation challenges and easing banking relations would be critical to elevating the trade volume beyond $3 billion.

Amir Abedi, President of the Iran-Kazakhstan Joint Chamber of Commerce, identified financial transactions as the primary obstacle to trade growth. He called for the establishment of executive committees by both governments to address banking issues and facilitate smooth business operations for Iranian traders in Kazakhstan.

Amir Yousefi, President of the Gorgan Chamber of Commerce, highlighted the presence of over 7,000 ethnic Kazakhs in Iran’s Golestan province, suggesting that the Incheh-Borun Free Trade Zone could be an attractive investment opportunity for Kazakhstan.

Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliyev, reaffirmed his country’s commitment to expanding trade ties to reach the $3 billion target. He noted that over 50 major Kazakh companies from 14 provinces participated in the recent trade meeting.

Discussions with Iran’s ministers of agriculture and industry explored practical solutions for achieving the trade goal. Shakkaliyev highlighted opportunities in the construction materials sector (such as ceramics), medical equipment, machinery, and food industries, projecting that trade in technical and engineering services alone could reach $500 million annually.

He also pointed out that with over 75,000 members in Iran’s Chamber of Commerce, the potential for private-sector collaboration is immense. However, without resolving banking challenges, trade growth would remain constrained. He proposed solutions to address these issues and expressed optimism about reaching favorable agreements.

Additionally, he identified transportation as another major hurdle and stressed the importance of utilizing the North-South Corridor for improved logistics.

Shakkaliyev concluded by advocating for the definition of 10 major joint industrial projects, which should be finalized in the Iran-Kazakhstan Economic Commission meeting scheduled for April.

Both Iran and Kazakhstan recognize the untapped potential in their trade relations. However, addressing banking and transportation issues remains crucial for reaching their ambitious $3 billion trade target. With strategic cooperation in various industries and infrastructure projects, both nations aim to strengthen their economic partnership in the coming years.