Iran traded 75.17 million tons of goods worth $36.81 billion with its 15 neighbors during the current Iranian year’s first nine months (March 21-Dec. 21, 2021), registering an 18% and 42% rise in weight and value respectively compared with the similar period of last year, according to the head of Islamic Republic of Iran Customs Administration.
“The weight and value of trade with neighbors accounted for 61% and 51% of Iran’s total exchanges with other countries respectively during the period,” Alireza Moqaddesi was also quoted as saying by IRNA.
Iran’s exports to its neighbors stood at 57.33 million tons worth $18.76 billion during the period, registering a 9% and 24% year-on-year increase in weight and value respectively.
The tonnage and value of exports to neighbors accounted for 62% and 53% of those of Iran’s total exports.
“Iraq with $6.8 billion, Turkey with $4.13 billion, the UAE with $3.43 billion, Afghanistan with $1.41 billion and Pakistan with $911 million were our top five export destinations followed by Russia, Oman, Azerbaijan Republic, Turkmenistan, Armenia, Kazakhstan, Kuwait, Qatar, Bahrain and Saudi Arabia in a descending order,” he added.
As for imports, said the IRICA chief, 17.68 million tons of goods worth $18 billion were shipped in from the neighbors during the period, indicating a 62% and 68% YOY growth in tonnage and value respectively.
The tonnage and value of imports from neighbors accounted for 59% and 49% of those of Iran’s total imports during the period.
“The top five exporters to Iran were the UAE with $11.49 billion, Turkey with $3.7 billion, Russia with $1.22 billion, Iraq with $880 million and Oman with $409 million followed by Pakistan, Kazakhstan, Azerbaijan Republic, Turkmenistan, Armenia, Afghanistan, Kuwait, Qatar and Bahrain.”
Imports Mainly Consist of Essential Goods
The imports mainly included essential goods, raw materials and machinery.
Also known as necessity or basic goods, essential goods are products consumers will buy, regardless of changes in income levels.
A total of 23.05 million tons of essential goods worth $14.14 billion were imported into Iran during March 21-Dec. 21, 2021, the IRICA chief was quoted as saying earlier.
“Seven commodities weighing around 20.17 million tons and valued at $11.14 billion in total were imported using subsidized foreign currency at the rate of 42,000 rials per dollar, registering a respective rise of 36% and 83% compared with the similar period of last year,” Moqaddesi was also quoted as saying by Fars News Agency.
The official said the top three imported commodities in this category included 7.05 million tons of corn worth $2.24 billion (registering a 3% fall in weight and a 35% rise in value YOY), 1.53 million tons of unrefined and edible vegetable oil worth $2.08 billion (up 102% in weight and 231% in value YOY) and 5.02 million tons of wheat worth $1.71 billion (up 101% in volume and 147% in value YOY).
Other essential goods imported during the period were 16,274 tons of pharmaceuticals and medical equipment worth $1.67 billion (up 42% and 36% in weight and value respectively YOY), 1.99 million tons of oilseeds worth $1.39 billion (up 8% in weight and 47% in value), 1.96 million tons of soymeal worth $1.08 billion (up 77% in volume and 134% in value) and 2.61 million tons of barley worth $767.52 million (up 94% in weight and 135% in value).
Moqaddesi noted that 2.87 million tons of the imported essential goods worth $2.99 billion were imported using the currency available at the Secondary Foreign Exchange Market, known locally as Nima.
Nima is an online platform affiliated to the Central Bank of Iran where exporters sell their overseas currency income and companies buy it for importing goods, machinery, equipment and raw materials. Foreign currency rates in Nima are priced slightly lower than free market levels.
The main commodities included 958,904 tons of rice worth $818.82 million (up 23% in weight and 15% in value), 1.05 tons of unrefined sugar worth $466.9 million (up 6% in weight and 31% in value), 32,402 tons of essential goods for production lines and processing machinery worth $314.3 million (down 4% in both volume and value), 63,849 tons of heavy vehicle tires worth $229.634 million (up 12% in volume and 11% in value), 152,785 tons of fertilizers worth $17.66 million (down 27% in weight and 13% in value), 8,127 tons of pesticides and insecticides worth $71,39 million (up 41% in volume and 22% in value) and 375 tons of veterinarian medicines worth $38.34 million (up 5% in weight and down 18% in value).
Iran’s First Trade Center in Dubai
The UAE is Iran’s biggest trade partner among the neighbors.
Iran’s first trade center licensed by Trade Promotion Organization of Iran was recently inaugurated in Dubai, the UAE.
As Iran Chamber of Commerce, Industries, Mines and Agriculture reported that the establishment is aimed at helping Iranian companies find a foothold in the UAE that happens to be one of the main hubs of Iran’s trade in the region.
It also seeks to use advanced information technology to create a platform that facilitates business activities of Iranian firms in the Emirati market by providing technical advice and consultation services.
The inauguration came after a senior Emirati official said the UAE would soon send a delegation to Iran as part of efforts to improve ties with Tehran.
"I hope that it is the sooner the better and all our friends are aware of it," Anwar Gargash, diplomatic adviser to the UAE president, told reporters when asked when a UAE delegation would hold talks in Tehran.
The idea was to "turn over a new page" in relations, he was quoted as saying by Reuters.
Iran’s Foreign Ministry has voiced the administration’s determination to broaden relations with the neighbors, including the UAE, calling for constant consultations between Tehran and Abu Dhabi.
Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s top national security adviser, paid a visit to Iran recently for high-level talks that are seen as a possible sign of thawing relations between the two countries.
He expressed Abu Dhabi’s readiness to expand cooperation with Iran, hoping that a visit by Iranian President Ebrahim Raisi would open a new chapter in bilateral relations.
“We are the children of this region and share the same fate, so expansion of bilateral relations is on our agenda,” Sheikh Tahnoon bin Zayed Al Nahyan said in a meeting with Raisi in Tehran, President.ir reported.
He also extended the Emirati president’s official invitation to Raisi to visit the Persian Gulf Arab country.
The Emirati advisor also met his Iranian counterpart, Ali Shamkhani, and held detailed negotiations that he said would mark a turning point in bilateral relations, helping improve overall security in the region.
“Iran as a great and strong country in the region, enjoys a unique geopolitical position as it is the gateway between the east and the west,” he said.
According to Sheikh Tahnoon, developing brotherly relations between Abu Dhabi and Tehran is a priority of the UAE.
“It is essential to establish expert working groups to work out areas for joint cooperation in various economic sectors and identify impediments to remove them,” he said.
Shamkhani also expressed hope that the Emirati official’s visit would be the beginning of a new era of mutual relations and pave the way for the expansion of ties in all sectors.
Iran and the UAE have had business ties stretching back over a century, but they have been on different sides on certain issues, including the war in Yemen.
Sheikh Tahnoon’s visit comes amid Abu Dhabi’s efforts to deescalate tensions with Iran as part of a policy choice toward diplomacy and away from confrontation.
Total Q1-3 Trade Over $72 Billion
Iran’s total foreign trade (excluding crude oil exports) stood at 122.5 million tons worth $72.1 billion during the March 21-Dec. 21 period, registering an 11% and 38% year-on-year growth in weight and value respectively, according to IRICA.
This shows neighboring states accounted for half of Iran’s total trade.
Exports hit 92.3 million tons worth $35.1 billion to register an 8% and 40% increase in weight and value respectively compared with last year’s corresponding period.
Petrochemicals had the lion’s share of exported items with 42.4 million tons worth $14.7 billion during the period, accounting for 46% of total exports’ weight and 42% of value.
China was Iran's biggest export destination with 21.3 million tons of imports worth $10.2 billion.
Imports hit 30.1 million tons worth $37 billion during the period, registering a 20% and 37% growth in weight and value YOY respectively.
The UAE was the biggest exporter to Iran followed by China with 2.5 million tons worth $8.4 billion.
According to IRICA chief, 9.16 million tons of foreign goods were transported through Iran to other destinations during the same period to register a 76% growth.
