Iranian Goods Reach Bangladesh Via Third Countries

TEHRAN (Iran News) During the meeting, Mohammad Reza Tavakkoli Zadeh, head of the Mashhad Chamber of Commerce, emphasized the positive trade relationship between Iran and Bangladesh and noted that there was significant potential to further develop these ties. He pointed to cultural similarities as a key factor in fostering stronger economic cooperation between the two countries. However, Tavakkoli Zadeh expressed concern that despite this potential, trade relations between Iran’s Khorasan Razavi province and Bangladesh have not reached the desired depth.

“There is a real need to raise awareness about each other’s economic capacities,” Tavakkoli Zadeh said. He called for more direct engagement between Iranian and Bangladeshi traders, particularly highlighting the unique products of Khorasan Razavi such as saffron and dried fruits, which already have a presence in Bangladeshi markets. By improving mutual knowledge of market conditions and opportunities, Tavakkoli Zadeh believes that both countries can unlock greater trade potential.

One of the major issues highlighted by Tavakkoli Zadeh is the indirect route through which Iranian goods enter the Bangladeshi market. Currently, Iranian exports such as bitumen and food products are primarily reaching Bangladesh via third-party countries like Turkey, Dubai, and India. This practice increases costs and complicates the supply chain, thereby limiting the potential for direct trade growth.

Bangladesh Ambassador Chowdhury confirmed these challenges, stating that while there is substantial interest in Iranian goods among Bangladeshi traders, direct trade relations remain stymied by financial and logistical barriers. One of the most significant obstacles, according to Tavakkoli Zadeh, is the difficulty in transferring money between the two countries due to banking sanctions and other financial restrictions. He expressed optimism, however, that if these hurdles were addressed, bilateral trade could grow considerably.

Chowdhury echoed this sentiment, stressing that financial transactions are crucial for expanding trade. “If we can overcome these financial obstacles, trade between Iran and Bangladesh will naturally increase,” he said.

Both Iranian and Bangladeshi officials emphasized the importance of sending and receiving trade delegations to strengthen mutual understanding and open new avenues for commercial interactions. Tavakkoli Zadeh proposed the idea of hosting a Bangladeshi trade delegation in Khorasan Razavi, while also organizing a delegation from the province to visit Bangladesh in the near future.

Bangladesh Ambassador supported this initiative, stating that trade delegations could help bridge the gap in commercial awareness between the two countries. He highlighted the importance of introducing Bangladeshi traders to Iranian markets, which could serve as a viable alternative to existing trade routes that rely on intermediaries. According to Chowdhury, Bangladesh, with its population of 170 million and growing middle class, presents an attractive market for Iranian goods, especially those that offer competitive pricing and high quality.

Adding to the conversation, Julia Moeen, Commercial Attaché of the Bangladeshi Embassy in Tehran, invited Iranian companies to participate in the Dhaka International Trade Fair (DITF) 2024. Scheduled to be held from January 1 to February 1, 2024, the fair is one of Bangladesh’s largest trade exhibitions, drawing participants and visitors from around the world. Moeen stressed the importance of Iranian traders attending such events to foster direct trade relationships and increase visibility for Iranian products in the Bangladeshi market.

“The Dhaka International Trade Fair is a prime opportunity for Iranian companies to showcase their products and establish direct commercial links with Bangladeshi buyers,” Moeen said. She urged relevant Iranian institutions to encourage participation in the exhibition, emphasizing that this could be a key step toward overcoming existing trade barriers.

Both countries are keen to enhance their economic relationship, but the road to closer cooperation requires tackling existing obstacles, especially those related to financial transactions and indirect trade routes. Increased communication, direct engagement through trade delegations, and participation in international trade fairs are seen as vital steps toward improving trade relations.

While Iran is a major supplier of goods like bitumen to Bangladesh, removing the reliance on third countries for exports would significantly lower costs and allow for more direct economic benefits for both nations. The commercial ties between Iran and Bangladesh remain strong, but with targeted efforts to remove barriers and improve mutual awareness, these relations can grow even stronger in the coming years.

With a combined focus on improving financial systems and fostering direct trade channels, officials from both sides are optimistic that these efforts will lead to a new chapter in economic cooperation between Iran and Bangladesh.