Iran and Turkey registered $2.53 billion in bilateral trade during the first seven months of 2021, marking a 75.27% surge compared with the same period of last year.
The former exported goods and commodities worth $1.22 billion during the seven months, up 138.99% year-on-year.
Imports from Turkey grew by 38.17% from $874.64 million to $1.21 billion, latest data by Turkish Statistical Institute show.
Iran and Turkey exchanged $381.07 million worth of goods and commodities in July 2021, 23% higher than the same period of last year.
Iranian exports to Turkey accounted for $170.74 million of the figure, up 85.98% YOY.
Turkey’s exports to Iran stood at $210.33 million, down 2.55% year-on-year.
Monthly trade between Iran and Turkey fell below $300 million in September 2020, mostly due to a fall in Iran's exports to the neighboring country. However, trade started to improve in December, raising hopes for recovery from the impact of Covid-19 on trade between the two countries.
Bilateral trade stood at $3.43 billion in 2020, registering a decrease of 45.82% compared with 2019.
Iran exported $1.192 billion worth of goods to Turkey in 2020 to register a 66.9% year-on-year decline. Imports from Turkey stood at $2.245 billion, down 17.97% YOY.
Turkey’s collective value of exports amounted to $169.482 billion down 6.3%. The country’s imports amounted to $219.397 billion in 2020, up 4.3%, compared with January-December 2019.
“Finalizing ongoing negotiations with Iran for the expansion of the bilateral Preferential Trade Agreement is a priority for Turkey,” Energy and Natural Resources Minister Fatih Donmez told the virtual 28th Turkey-Iran Economic Commission held earlier this year, Daily Sabah reported.
“The trade deal came into effect on Jan. 1, 2015, and negotiations have been ongoing to expand the pact by increasing the number of products traded between Turkey and Iran.”
Customs cooperation was another topic up for discussion at the meeting. Within this scope, both sides agreed to an electronic data interchange protocol, to carry out a simplified customs frontier project and the mutual recognition of an Authorized Economic Operator project.
Donmez stressed that these projects will have a positive impact on foreign trade volumes by enabling easier and faster trade while eliminating bureaucratic procedures based on mutual trust.
Both sides agreed that technical teams would meet in the near future to put the plans into action.
“The two sides also agreed on increasing fairs and trade delegations between Turkey and Iran to show our [Turkey’s] concrete support and the great importance attached to cooperation between private sector representatives,” he said.
Support for the activities of the Turkey-Iran Business Council and other private sector establishments, notably small-l and medium-sized enterprises, would also continue, particularly after the pandemic, Donmez said.
Consequently, both sides agreed to commit to 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.
The Turkey-Iran Social Security Agreement signed on March 24 is said to have strengthened commercial and economic relations between the two countries.
Fatih Cayabatmaz from the Independent Industrialists and Businessmen Association told Anadolu Agency that the agreement offers important opportunities for the business world.
"The implementation of the Turkey-Iran Social Security Agreement will increase Iranian businessmen's interest in Turkey,” he added.
Noting that Iranians topped the list of foreigners establishing a company in Turkey, Cayabatmaz said, "In February, Iranians came first on the list with 75 companies.”
In addition to reinforcing relations, it will warm “the two nations toward each other", he added.
Cayabatmaz said that with the new agreement, Iranian businessmen who have founded a company in Turkey need to submit documents indicating that they paid insurance in their home country for the Iranian staff they employ, without having to pay insurance in Turkey.
"The time Iranian workers spend working in Turkey will be valid in Iran. This will reduce costs and increase the possibility of Iranian businessmen’s investment in Turkey. The same applies for Turkish businessmen operating in Iran and their personnel," he said.
He noted that health insurance for an employer would be valid in the other country, allowing workers to access health services free of charge.
A previous Social Security Agreement between Turkey and Iran, inked on April 16, 2016, was approved again by the Turkish Parliament on March 24.
With the addition of Iran, the number of countries with effective social security agreements with Turkey rose to 34.
