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Trade with Iran to increase significantly

Trade with Iran to increase significantly

Iran attaches great importance to the expansion of economic relations with Azerbaijan.

The trade turnover between Azerbaijan and Iran is expected to exceed $600 million in 2019, Hossein Vosoughi-Irani, Iranian Secretary General of the Azerbaijan-Iran Chamber of Commerce.

In his words, given the sanctions imposed by the U.S. against Iran, the country representatives urge exporters to increase trade with neighboring countries.

The secretary general added that trade between Iran and Azerbaijan amounted to $400 million last year.

‘Over the past years, food products, construction materials and other goods accounted for the largest part of the turnover. In subsequent years, the structure of trade will change, and its basis will be finished products, he underlined.

Predicting investment growth between two countries, Vosoughi-Irani pointed out that as a result, the industrial products will enter the trade turnover between the two countries.

The secretary general also added that Iran will be represented by a large delegation at the construction exhibition to be held in Baku this October.

For the period from March 21 to April 20 this year, Iran exported 33,000 tons of products to Azerbaijan with a total value of $20 million, which is 0.8 percent of the country’s total exports.

Vosoughi-Irani also noted that during the reporting period, exports from Iran to Azerbaijan decreased in value and weight terms by 3 and 11 percent respectively.

‘Azerbaijan takes the 14th place in the export of Iran. Over the same period, Azerbaijan’s exports to Iran amounted to about $1 million, he noted.

The Azerbaijani-Iranian relations have developed and reached a new stage over the past four years as a result of mutual efforts. So far, more than 150 documents have been signed between the two countries. More than 1,000 Iranian companies are registered in Azerbaijan in industry, construction, services, communications, trade, transport, agriculture and other spheres. Iranian investments in Azerbaijan exceed $3.4 billion.

Iranian companies successfully operate in Azerbaijan. Two countries cooperate within the joint car production plant in Neftchala Industrial Zone, joint pharmaceutical plant Caspian Pharmed in Pirallahi Industrial Park, Khudaferin and Maiden Tower hydro power plants, etc.

Recently, Iranian Trade Center opened in Baku to support trade relations between the businessmen of the two countries and help them solve their problems.

The trade turnover between the two countries is planned to reach $2 billion in short term perspective. Reaching the $2 billion milestone in trade turnover within 7-8 years can be regarded as success for both countries.

Iran sees Azerbaijan as a hub to reach larger regional markets. The cooperation on transportation between Iran and Russia through Azerbaijan is crucial in the realization of the International North-South Transport Corridor project.

The cooperation between Azerbaijan and Iran on customs also contributes to the expansion of transit potential of both countries and increasing of the competitiveness of international transport. As part of the procedures regulated by the Customs Convention on the International Transport of Goods under Cover of TIR Carnets, the two countries implement e-TIR Pilot project, which provides for full e-government of transit operations between Azerbaijan and Iran.

Azerbaijan and Iran share common values, history and traditions that bound them. The two countries are eager to develop their non-oil economy, integrate regional transport networks and boost mutually advantageous business projects in order to stimulate trade volume.