ECO Considers Common Currency by 2035 as Intra-Regional Trade Remains Low at 8%

TEHRAN (Iran News) Khan reported that ECO’s total trade in 2023–24 reached approximately $1.016 trillion, or 4–5% of global trade, but only $110 billion occurred within the bloc — around 8–9% of total trade.

“This share has barely changed over the years and lags far behind other regional blocs,” he noted. “For comparison, intra-EU trade accounts for 60–65%, while ASEAN’s is 30–35%.”

Khan attributed this gap to the region’s reliance on raw materials and fossil fuel exports, emphasizing the need to shift toward higher-value goods and services. He added that ECO’s 2015–2025 roadmap achieved progress in freer movement of goods, capital, and people, as well as regional transport connectivity, though large-scale infrastructure remains capital-intensive. The forthcoming Strategic Vision 2026–2035 will set the course for the next decade.

Khan praised Iran’s role in reactivating ECO’s long-dormant ministerial meetings. “The trade ministers’ meeting had not been held for 14 years. This year, we successfully convened transport and tourism ministers, with sessions for interior and agriculture ministers scheduled as well,” he said.

A regional customs agreement is also expected to be finalized at the next trade ministers’ summit on November 26, aiming to digitize procedures, reduce transport costs, and harmonize customs operations. “Landlocked members rely on countries with sea access, such as Iran, Pakistan, and Turkey, to lower transit costs and time,” Khan noted.

Khan highlighted ECO’s vulnerability to floods, droughts, wildfires, and glacial melt, stressing the need for coordinated action. ECO’s Energy Center in Baku is working to promote sustainable and circular economic practices across the region.

He acknowledged challenges in coordinating diverse economies — including differing WTO membership, tariff structures, and technical barriers like rail gauge differences — but saw these differences as opportunities for complementary economic growth.

On relations with other regional organizations, including the Shanghai Cooperation Organization (SCO), Khan emphasized complementarity rather than rivalry. “ECO focuses on trade and economic cooperation, while SCO prioritizes security. We see potential for collaboration, not competition,” he said. ECO also works with CICA, the Organization of Turkic States, and the CIS to exchange best practices.

Khan underlined the interconnection of trade, transport, and tourism. “Connectivity alone is meaningless without goods to move or visas for drivers,” he said.

He also stressed cooperation in food security, science, technology, and AI, pointing to the region’s youthful population. He welcomed Iranian President Masoud Pezeshkian’s proposal at the recent ECO Summit to establish a regional AI cooperation center and a youth start-up fund. ECO’s Science Foundation in Pakistan will play a key role in research and educational collaboration.

Khan confirmed that ECO is examining shared payment systems and potentially a common currency, particularly to facilitate trade with members under international sanctions.

“We need reliable mechanisms to trade without obstacles,” he said, noting that reducing border transit times and harmonizing standards — especially in agriculture — remain critical.

“ECO’s unique historical, cultural, and linguistic ties give us a strong foundation,” Khan concluded. “By aligning strategies and modernizing trade mechanisms, we can unlock the region’s full potential and strengthen economic integration for all members.”