Tehran, Dhaka Keen to Broaden Trade Ties
TEHRAN (Iran News) In a meeting with A. K. Abdul Momen, the Minister of Commerce of Bangladesh, Samad Hasanzadeh said, “We want to export products that are about 80% complete to Bangladesh so that, with the participation of Bangladeshi partners, the remaining 20% can be completed and then re-exported to other countries.”
He emphasized that realizing such cooperation requires the implementation of double taxation avoidance agreements and preferential trade agreements between Iran and Bangladesh, which have not been enacted in the past 20 years.
Referring to the start of the new Iranian president’s term, Hasanzadeh continued, “The two countries must redefine their trade relations with a new plan.”
The President of the Iran Chamber highlighted Bangladesh’s population of 170 million and its promising market for Iran, stating that Iran has significant capacities in food production, textile industries, knowledge-based products, pharmaceuticals, and medical equipment, construction materials, information technology, and the export of technical and engineering services.
Hasanzadeh noted that the level of trade relations between the two countries has not kept pace with their good political relations. He continued, “By holding the joint economic commission, which has not convened in 10 years, and by dispatching and receiving trade delegations through the chambers of commerce of both countries, we can enhance trade relations.”
- K. Abdul Momen, the Minister of Commerce of Bangladesh, emphasized the importance of developing Iran-Bangladesh relations in this meeting. He stated, “Bangladesh can serve as a gateway for Iranian traders to the Bay of Bengal and countries such as Nepal and ASEAN nations.”
Highlighting Bangladesh’s significant capacities in the production of jute, leather, and textiles, Momen continued, “Iran also has good capacities in the production of bitumen, LPG gas, polyester, and petrochemical products, as well as dried fruits, saffron, and carpets, and we are keen to import these items from Iran.”
Momen added that payment issues between the two countries have hindered the development of economic relations between Iran and Bangladesh. He expressed hope that with ongoing efforts between the governments of the two countries, this problem will soon be resolved and alternative solutions will be defined.
He emphasized the need to expedite the implementation of double taxation avoidance and preferential trade agreements between the two countries. Momen said, “By connecting our ports and establishing a payment system between the two countries, we can fully utilize the existing capacities.”
Welcoming the investment of the Iranian private sector in Bangladesh, Momen continued, “We are working to facilitate interactions between the private sectors of the two countries and provide necessary information to Iranian traders.”
Earlier Ghadir Ghiyafeh, Vice President of the (ICCIMA) stated that current trade volume between Iran and Bangladesh is $200 million, which does not reflect the trade potential of the two countries.
In the “Strategies to Overcome Trade Barriers Between Iran and Bangladesh” meeting, Ghiyafeh noted the complementary economies of the two nations. Iran can supply Bangladesh with chemical fertilizers, urea, oil, gas, and dried fruits, while Bangladesh can meet Iran’s needs in textiles, clothing, and certain agricultural products.
Ghiyafeh stressed the need for direct banking connections and emphasized the private sector’s request for the Bangladeshi government’s commitment to this issue.
Bangladesh’s Commerce Minister, Ahsan Islam Tito, highlighted efforts to establish various infrastructures and access to a surrounding population of 300 million. He encouraged Iranian traders to produce in Bangladesh and export their products globally through the country.
Tito added that foreign investments in Bangladesh are 100% tax-exempt and noted special economic zones available for Iranian investors. He suggested exploring trade using local currencies to enhance financial and banking transactions, which would support increased trade relations.
Tito urged maximizing the bilateral and D-8 preferential trade agreements to enhance trade interactions between Iran and Bangladesh.
Niloufar Asadi, Director of Asia and Oceania at the International Affairs Department of the Iran Chamber, highlighted the significant cooperation potential between the two countries. She mentioned opportunities in jute, dates, dried fruits, machine-made carpets, knowledge-based products, pharmaceuticals, medical equipment, tourism, and building materials for joint trade and investment.
Asadi reiterated the Chamber’s efforts to facilitate bilateral trade and expressed hope for smoother trade relations following the implementation of double tax avoidance agreements and bilateral and multilateral preferential trade agreements with D-8 countries.
Manjurul Karim Khan Chowdhury, Bangladesh’s Ambassador to Iran, acknowledged the challenges in trade relations due to sanctions but expressed optimism for a swift resolution within a few months. He confirmed Bangladesh’s commitment to implementing the preferential trade agreement with Iran, which would ease bilateral trade.
Chowdhury emphasized rejuvenating Iran-Bangladesh trade through new-generation traders and modern trade methods, with the Bangladeshi embassy in Iran fully supporting this initiative.
Khurshid Gazdarazi, Chair of the Iran-Bangladesh Joint Committee, proposed several measures to enhance trade relations, including forming a corresponding committee in Bangladesh, implementing preferential tariffs, bartering goods, active engagement with Bangladeshi chambers of commerce, signing trade agreements, investing in Iran’s petrochemical sector, developing transportation links, and managing financial and banking relations.
Gazdarazi requested the Bangladeshi embassy to provide investment opportunities and market entry details, including tariffs and import regulations, to inform Iranian traders. He emphasized the importance of trade delegations and participation in exhibitions to boost Iran-Bangladesh trade relations.
