Iran exported to 143 countries and imported from 123 in the fiscal 2020-21, despite sanctions and restrictions related to Covid-19 pandemic.
“Exports stood at $34.99 billion and imports hit $38.89 billion,” Rouhollah Latifi, spokesman of the Islamic Republic of Iran Customs Administration, was quoted as saying by IRNA.
China with $9.77 billion, Iraq with $7.44 billion, the UAE with $4.66 billion, Turkey with $2.53 billion and Afghanistan with $2.3 billion were Iran's main export destinations.
The lowest volume of exports worth $448 was shipped to Luxembourg.
The imports mostly came from China with $9.84 billion, the UAE with $9.75 billion and Turkey with $4.4 billion.
Nearly 50% of the exports during the fiscal 2020-21 were petrochemical and petroleum products, 20% were mineral products, 18% were agricultural and food products and about 10% were industrial products, gas condensate and handicrafts.
According to Mehdi Mirashrafi, the head of Islamic Republic of Iran Customs Administration, China, Iran’s biggest trading partner, accounted for 26% of Iran's total non-oil exports. Pistachio, nuts, minerals, construction materials, methanol, carpet, iron ore, glassware and fruits were the main types of goods exported from Iran to China during the period under review.
Imports from China accounted for 25.3% of the total value of imports during the period. Industrial machinery and raw materials, medical equipment, paper, wood, textile, auto parts and sports equipment were Iran's main imports from the South Asian state in the period.
“Iran’s foreign trade reduced by 25 million tons due to sanctions and the Covid-19 pandemic,” the IRICA chief noted adding that the country’s trade deficit stood at $4 billion.
Mirashrafi added that a total of 23.1 million tons of essential goods, including corn, cellphones, rice, soybean meal, oilseeds, wheat and unprocessed oils, worth $12 billion were imported during the period.
Iran imported 3.5 million tons of essential goods worth $9.7 billion from China, 5 million tons worth $9.6 billion from the UAE, $4.3 billion from Turkey, 2.2 million tons worth $2.1 billion from India and 1.2 million tons worth $1.8 billion from Germany in the year to March 20.
Also known as necessity goods, essential goods are products consumers will buy, regardless of changes in income levels.
Neighbors Account for Half of Trade
Data released by the Islamic Republic of Iran Customs Administration show Iran’s 15 neighboring countries accounted for about half of its total non-oil trade in the last Iranian year that ended on March 20, 2021.
Iran traded $36.45 billion worth of non-oil goods with neighboring countries, namely the UAE, Iraq, Turkey, Afghanistan, Pakistan, Russia, Oman, Azerbaijan, Turkmenistan, Kuwait, Qatar, Kazakhstan, Armenia, Bahrain and Saudi Arabia, in the last Iranian year.
Non-oil trade with neighbors posted a decline compared with the preceding year’s $40 billion.
Iran’s exports to its neighbors totaled $20.35 billion in March 2021-22 fiscal year, indicating a $4 billion decrease in value year-on-year.
Imports amounted for $16.09 billion during the period, unchanged compared with the same period of last year.
UAE Tops List of Neighboring Trading Partners
The UAE was Iran’s leading trade partner among the neighboring states, with $14.4 billion worth of non-oil exchanges.
“Our exports to the neighboring country hit 15.27 million tons worth $4.62 billion, showing a 27% and 6.5% rise in volume and value respectively YOY. The exports account for 13.6% and 13.4% of Iran’s total exports over the period under review. The country was Iran’s third biggest export destination after China and Iraq,” the IRICA spokesman has quoted as saying by the news portal of Iran Chamber of Commerce, Industries, Mining and Trade (Otaghiranonline.ir).
The official noted that the main exported goods included seafood, flower, fruit and vegetable, nuts, dried fruit, saffron and other spices, chocolate and pastry, fruit juice, vinegar, construction materials, cement, minerals, floorings, carpet, apparel, footwear, handicrafts, steel products, doors and windows, kitchen utensils, industrial machinery, light bulbs, furniture, musical instruments, medical equipment, electric and electronic devices, auto spare parts, packaging machinery and wickerwork.
“We imported close to 5.07 million tons of goods from this southern neighbor, worth $9.65 billion. The figures account for 15% and 25% of Iran’s total imports over the year under review respectively. The UAE was the second biggest exporter to Iran after China,” he added.
Latifi noted that Iran’s main imports from the UAE over the period were tropical fruit, livestock, pulses, coffee and cocoa, spices, rice, barley, oilseeds, seeds, edible oils, tobacco, minerals, industrial oils and raw materials, supplements, medical and dentistry equipment, glue, paper and cardboard, tire production raw materials, fabric and thread, packaging raw materials and machinery, steel products, automatic doors, elevators, bolts and nuts, auto spare parts, road construction and industrial machinery and sports equipment.
“Iran had set the goal of increasing exports to the UAE to $6 billion in the year ending March 2020 and $7 billion in the year ending March 2021, which goals were not achieved. Our actual exports to the neighboring country stood at $4.5 billion in the year ending March 2020. Iran has set its export target at $8 billion for the next year [March 2021-22]; there are multifold barriers in the way of reaching this goal,” Farshid Farzanegan, the chairman of Iran-UAE Chamber of Commerce, said before the Iranian New Year (started March 21).
According to the official, among these barriers are the Central Bank of the UAE’s strict policy regarding Iranians’ banking accounts, inefficiency of Iran’s road transport, particularly that of refrigerated containers, and lack of infrastructures for cold storage of agricultural products.
“Countless trade rules and regulations are constantly shifting. Iran-UAE trade would improve, if there had been stability in terms of laws,” he added.
Farzanegan further said facilitating visits by economic operatives, improving banking ties, holding permanent exhibitions, employing active economic diplomacy regarding the UAE, Bahrain and the Saudi Arabia, which have a total import capacity of $135 billion, will help improve business.
“As we speak, Iranian products are entering Saudi Arabia through the UAE and Oman,” he added.
Stressing that the launch of economic and trade departments in Iran’s Embassy in the UAE and efforts to boost tourism would be helpful, Farzanegan said, “We at the Iran-UAE Chamber of Commerce are all set to transfer our data and information to these departments. Afghanistan is now exporting Iranian handicrafts and saffron to the UAE.”
Noting that Iran needs to approve laws related to the standards of the Financial Action Task Force, Farzanegan said, “Iran’s blacklisting by the global watchdog has interrupted trade with the UAE.”
Other Major Partners Among Neighbors
Following the UAE in the list of Iran’s trade partners among the neighboring countries were Iraq with $7.58 billion, followed by Turkey with $6.9 billion, Afghanistan with $2.31 billion and Russia with $1.53 billion.
Pakistan and Oman followed with $1.17 billion and $871 million, respectively.
Iranian goods and commodities worth $7.44 billion were exported to Iraq, making it Iran’s top export destination among the neighboring states.
The UAE, Turkey and Afghanistan came next with $4.66 billion, $2.53 billion and $2.3 billion, respectively.
The UAE, with $9.75 billion, accounted for the largest share of Iran’s imports from among neighboring countries during the period. It was followed by Turkey with $4.39 billion worth of goods and Russia with $1.03 billion worth of goods.
Latest IRICA Data
Iran’s non-oil foreign trade in the first month of the current Iranian year (March 21-April 20) stood at 10.34 million tons worth $5.76 billion, indicating an increase of 32% and 62.5% respectively in weight and value year-on-year.
According to Mirashrafi, exports accounted for 8.3 million tons worth $2.96 billion and imports constituted 2.04 million tons worth $2.79 billion of the total sum.
Exports show an increase of 56% in weight and 80% in value while imports register a decline of 18% in weight but an increase of 47% in value year-on-year.
Noting that gasoline was Iran’s main export during the period, the official added that top export destinations were China with 2.25 million tons of non-oil goods worth $974 million (registering a year-on-year increase of 37% and 86% in weight and value respectively), Iraq with 1.53 million tons worth $428 million (77% and 66% increase in tonnage and value), the UAE with 1.2 million tons worth $417 million (a 17% growth in both weight and value), Turkey with 191,000 tons worth $177 million (an increase of 7.5% and 149% in weight and value), and Afghanistan with 452,000 tons worth $175 million (posting a year-on-year increase of 17% and 42% in weight and value.)
“These five countries imported a total of 5.63 million tons of non-oil goods worth $2.17 billion from Iran, i.e., 68% of weight and 73% of value of Iran’s overall exports during the period under review,” he was quoted as saying by Mehr News Agency.
Iran imported $198 million worth of mobile phone devices, $150 million worth of sunflower oil, $103 million worth of wheat, $89 million worth of rice and $76 million worth of soybean meal during the period under review.
Top exporters to Iran were the UAE with 453,000 tons of non-oil goods worth $788 million (registering a year-on-year increase of 110% and 113% in weight and value respectively), China with 221,000 tons of goods worth $656 million (an increase of 50% and 64% in weight and value), Turkey with 172,000 tons of goods worth $247 million (a decline of 67% in weight but an increase of one percent in value), India with 137,000 tons of goods worth $133 million (a decline of 35% and 19% in weight and value) and Russia with 174,000 tons of goods worth $132 million (a decrease of 48% in weight but an increase of 30% in value.)
“These five countries exported a total of 1.15 million tons of non-oil goods worth $1.95 billion during the month ending April 20. Imports from these five countries accounted for 65% and 70% of Iran’s total import in weight and value, respectively,” the IRICA chief said.
“A total of 933,000 tons of cargo were transited through Iran over the period, indicating a 193% growth year-on-year.”
