Tehran-Tokyo Trade Continues via Third Countries

TEHRAN (Iran News) In a statement to ILNA following the approval of a bill ratifying the agreement between the governments of Iran and Japan on mutual administrative assistance in customs matters, Hossein Selahvarzi emphasized the long-standing and respectful diplomatic ties between the two nations. “Diplomatic relations between Iran and Japan date back to 1929. Aside from a temporary interruption during World War II, bilateral relations have been friendly and based on mutual respect,” he said.

Selahvarzi recalled the peak of economic relations in the 1950s when Japan was one of Iran’s top crude oil customers. In exchange, Iran imported vehicles, electronic goods, and industrial equipment from Japan, with cultural relations also flourishing. He also noted the historic 2019 visit of the Japanese Prime Minister to Iran — the first since the Islamic Revolution.

He stated that Japan remains one of the few major economic powers that has never exploited Iran. The newly ratified customs cooperation agreement, he explained, is essentially an international treaty that provides a legal and operational framework for mutual support. “In normal, sanction-free conditions, such an agreement could have facilitated trade and eased customs procedures. However, even under current maximum-pressure sanctions from the U.S., the agreement can still help enhance bilateral relations,” he added.

Selahvarzi also highlighted the broader benefits of the agreement, particularly in tackling transnational crimes like drug trafficking and customs violations. “Japan plays a key role in global politics and the economy, while Iran is a strategic transit point between Asia and Europe. This agreement could lead to improved cooperation and sends a message that Iran welcomes constructive international engagement and seeks to revive ties with longstanding partners like Japan,” he noted.

When asked whether the agreement could boost trade in non-sanctioned goods, Selahvarzi warned against oversimplifying the issue. “It’s not just about which items are sanctioned. When financial transactions are blocked, even importing essential goods like medicine becomes a challenge. These restrictions disrupt all forms of trade, including non-sanctioned goods,” he explained.

Addressing current trade figures, Selahvarzi confirmed that official trade statistics remain minimal due to Japan’s strict compliance with sanctions. “However, a significant portion of our trade is being channeled through third countries. A wide variety of Iranian goods — particularly dried fruits and food products — are reaching Japan this way, and Japanese products are also finding their way to Iran via intermediaries,” he concluded.