Iran’s total exports to its top five European partners, namely Germany, the Netherlands, Italy, Spain and Belgium, stood at €493.7 million during the first 10 months of 2020, showing a 7% rise compared with the similar period of last year.
According to data released by Tehran Chamber of Commerce, Industries, Mines and Agriculture, Germany was the biggest destination of Iranian exports during the period with more than €223.1 million. It was followed by the Netherlands with €110.3 million, Italy with €84.7 million, Spain with €45.2 million and Belgium with €30.4 million worth of imports from Iran from January till October, IRNA reported.
Foodstuff and livestock accounted for 40%, chemicals for 19%, mineral fuels for 16%, industrial products for 11%, and inedible raw material (except fuel) for 10% of Iran’s overall exports to the European Union during the period under review.
The five main European exporters to Iran over the same period sold more than €2.37 billion worth of commodities to the country.
Germany accounted for €1.22 billion of the total sum while Italy, the Netherlands, France and Spain exported €474.7 million, €298.5 million, €206.2 million and €165.4 million worth of goods to Iran respectively during the period.
Transportation machinery and equipment accounted for 33%, chemicals for 27%, foodstuff and livestock for 14%, industrial products for 6% and inedible raw materials (except fuel) for 5% of Iran’s total imports from the EU.
Coronavirus, Sanctions
Global trade has dropped by 30% following the outbreak of coronavirus and Iran was no exception.
“Seven countries, including China, Iraq, Afghanistan, the UAE and India, account for 75% of foreign trade. Over 50% of Iran’s non-oil exports are headed to Iraq and China, all indicative of our export vulnerability," Majid Reza Hariri, the chairman of Iran-China Chamber of Commerce, was quoted as saying recently.
“Natural gas, gas condensates, petrochemicals and unprocessed minerals make up 70% of Iran's exports. Covid-19 has pushed down demand for and the prices of these exporting items. For our production lines to be operational, about $45 billion worth of essential goods, pharmaceuticals and medical equipment need to be imported. Given the restrictions placed on oil sales, this figure seems to be unreachable.”
Iran has to prepare for a 30% decline in export value in the current Iranian year (March 2010-21) compared with last year due to the impacts of the spread of novel coronavirus on national and international trade, a member of Iran Chamber of Commerce, Industries, Mines and Agriculture, Pedram Soltani, has said.
“Under the current circumstances, it is estimated that the country’s exports will fall between $10-12 billion compared with last year. The main products that will experience a plunge due to the pandemic are petrochemicals, steel, mineral products, tiles, ceramics and nuts,” he was quoted as saying by ISNA.
Soltani, a former deputy head of ICCIMA, added that China is most likely the least affected economy by the pandemic and since it is Iran’s top trading partner, exports to this country will hopefully remain unaffected.
“Yet, the outbreak of Covid-19 as well as the nosedive in oil prices will make Iraq, our second biggest export destination, very cautious and we will be facing limitations on the commodities we can export to the neighboring country.”
Soltani noted that based on World Trade Organization’s prediction, world trade will see a 13-32% plunge in 2020 (best- and worst-case scenarios), noting that it is likely that the economic crisis awaiting the world now will be more intense than the one experienced in 2008.
Iran’s Global Non-Oil Trade at $52b
Latest data released by the Customs Administration of Iran show Iran’s non-oil foreign trade stood at 110 million tons worth $52 billion during the nine months leading to Dec. 20.
According to Mehdi Mirashrafi, the head of IRICA, exports were at 85.2 million tons worth $25.1 billion and imports at 25 million tons worth $26.8 billion during the period.
Compared with the corresponding period of last year (March 21-Dec. 21, 2019), exports registered a 17% and 20% decline in weight and value respectively.
This is while imports show a 1% and 16% decrease in weight and value year-on-year, he was quoted as saying by ILNA.
The main export destinations over the period included China with 20.6 million tons of non-oil goods imports from Iran worth $6.4 billion, Iraq with 20.8 million tons worth $5.9 billion, the UAE with 11.4 million tons worth $3.3 billion, Turkey with 5.4 million tons worth $1.8 billion and Afghanistan with 5.2 million tons worth $1.7 billion.
The main exporters to Iran were China with 2.6 million tons worth $7 billion, the UAE with 3.5 million tons worth $6.3 billion, Turkey with 3.5 million tons worth $3 billion, India with 1.8 million tons worth $1.6 billion and Germany with 911,000 tons of goods worth $1.3 billion.
Imports of essential goods accounted for 17.5 million tons of the total imports (25 essential items constituted 70% of imports in terms of weight), the IRICA chief said.
Also known as necessity goods, essential goods are products consumers will buy, regardless of changes in income levels.
Amid high inflation and diminished purchasing power, the Iranian government has sought to ensure a steady supply of essential goods at subsidized prices.
