Iran and Turkey traded $2.86 billion worth of goods during the first half of 2022 to register a 40% year-on-year rise, the latest data released by the Turkish Statistical Institute show.
Iran’s exports stood at $1.7 billion, up 62.68% year-on-year, while imports grew by 16.23% to $1.16 billion.
Bilateral trade stood at $513.65 million in June, up 28.56% YOY, with Turkish exports at $208.17 million, down 1.64% YOY, and Iranian exports at $305.48 million, registering a 62.58% growth YOY.
Iran and Turkey traded $4.77 billion worth of goods in 2021 to register a 69.12% rise compared with the preceding year. Iranian exports stood at $2.52 billion, up 145.18% year-on-year, while imports grew by 25.5% to $2.25 billion.
Bilateral trade stood at $3.43 billion in 2020, registering a decline of 45.82% compared with 2019. Iran exported $1.192 billion worth of goods to Turkey in 2020 to register a 66.9% YOY decline while imports from Turkey stood at $2.245 billion, down 17.97% YOY.
Bazargan in Maku County is the most important Iranian land border for importing and exporting from and to Turkey. The city borders both Iraq and Nakhchivan Autonomous Republic. Its customs office, established in the fiscal 1926-27, is the only international border between Iran and Turkey that works round the clock.
Trade Target Set at $30b During Erdogan’s Visit
Iran and Turkey have agreed to extend their gas supply contract for another 25 years and set an ambitious trade target of $30 billion, Anadolu News Agency reported.
The agreement was reached during a recent meeting between Iranian President Ebrahim Raisi and his Turkish counterpart Recep Tayyip Erdogan in Tehran last month.
In his remarks at a joint presser with Erdogan after delegation-level talks, Raisi said the Turkish president’s visit to Tehran marks an "important turning point" in improving the level of cooperation between the two neighboring countries.
Raisi stressed that the level of trade and economic ties between Tehran and Ankara was not enough and can be moved to a higher level, adding that the $30 billion trade target is achievable.
In the presence of the two presidents, Iran and Turkey signed eight memoranda of understanding in political, economic, sports and cultural fields after their bilateral talks.
According to a statement by the Presidential Office, the agreements signed between the two sides include a comprehensive plan for long-term cooperation, support for small economic enterprises, radio and television cooperation, and cooperation between government departments.
The visit is the first by the Turkish president to Tehran since the formation of the new government in Iran last year.
The two leaders had met on the sidelines of the ECO Summit in Turkmenistan last November where they agreed on "the comprehensive improvement of ties”.
Erdogan arrived in the Iranian capital on Monday. Besides bilateral talks, he also participated in trilateral talks with Raisi and Russian President Vladimir Putin in the Astana Format.
The agreement to boost trade ties came shortly after Iran’s Leader Ayatollah Ali Khamenei said in his meeting with the Turkish president that there was scope to further expand bilateral economic ties.
The target of a $30 billion trade volume was originally set between the two countries before the US reimposed sanctions on Iran in 2018.
Raisi expressed hope that the strategic cooperation document signed between the two sides on Tuesday will contribute to the "consolidation of bilateral relations".
He said the two sides also agreed on the development of industrial towns and science and technology parks with the help of knowledge-based industries.
The Iranian president further said that the two sides discussed security cooperation, especially in securing joint borders. He said the security and intelligence bodies of the two countries can work together in bolstering security and combatting terrorism, narcotics and organized crimes.
“The two sides also discussed regional issues of common interest and emphasized that they must fight terrorism that threatens their security. Terrorism may have different names but it endangers the security of the region and must be taken into consideration,” he said.
Raisi stressed that good relations between the two countries can lead to "better regional and international relations" and both countries can play a role in bolstering regional and international security.
Preferential Trade Agreement
Finalizing ongoing talks with Iran for the expansion of the bilateral Preferential Trade Agreement is a priority for Turkey, Energy and Natural Resources Minister Fatih Donmez said.
“The trade deal came into effect on Jan. 1, 2015, and negotiations are underway to expand the pact by increasing the number of products traded between Turkey and Iran,” Donmez told the virtual 28th Turkey-Iran Economic Commission convened earlier this year.
Customs cooperation was another topic up for discussion at the meeting. Both sides agreed to devise an electronic data interchange protocol to carry out a simplified customs frontier project and the mutual recognition of an Authorized Economic Operator project.
These projects will have a positive impact on foreign trade by enabling easier and faster trade while eliminating bureaucratic procedures based on mutual trust, he added.
Both sides agreed to assign technical teams in the near future to put the plans into action.
“The two sides also agreed to increase fairs and exchange trade delegations to show our [Turkey’s] concrete support and the great importance attached to cooperation between private sector representatives,” Donmez said.
“Support for the activities of the Turkey-Iran Business Council and other private sector establishments, notably small- and medium-sized enterprises, would also continue after the pandemic.”
Both sides also agreed to hold talks on developing an “action plan” between the Small and Medium Enterprises Development Organization of Turkey and its Iranian equivalent, Iran Small Industries and Industrial Parks Organization.
Donmez concluded that the commission also addressed other areas of cooperation, including health, energy, transportation, education, environment, agriculture and forestry.
