Iran traded 1.39 million tons of non-oil commodities worth $922.57 million with Latin American countries during the current fiscal year’s first nine months (March 21-Dec. 21, 2021), latest data released by the Islamic Republic of Iran Customs Administration show.
Trade with Brazil stood at 1.09 million tons worth $519.4 million, for the Latin American country to top the list of Iran’s partners in the region.
It was followed by Argentina with 261,513 tons worth $357.37 million and Venezuela with 32,533 tons worth $36.16 million.
Iran’s exports totaled 326,106 tons worth $137.38 million during the period under review.
Brazil topped the list of export destinations among Latin American nations with 291,892 tons worth $114.62 million. It was followed by Venezuela with 32,392 tons worth $19.03 million and Mexico with 374 tons worth $1.78 million.
Imports, which stood at 1.06 million tons worth $785.18 million during the period under review, mainly came from Brazil with 796,253 tons worth $404.77 million, Argentina with 261,103 tons worth $356.54 million and Venezuela with 140 tons worth $17.13 million.
Iran’s total foreign trade (excluding crude oil exports) stood at 122.5 million tons worth $72.1 billion during the nine months, registering an 11% and 38% year-on-year growth in weight and value respectively, according to the Islamic Republic of Iran Customs Administration.
According to IRICA caretaker, Alireza Moqaddesi, 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 in 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, followed by Iraq with 23.5 million tons worth $6.8 billion, Turkey with 11.7 million tons worth $4.1 billion, the UAE with 8.3 million tons worth $3.4 billion and Afghanistan with 3.3 million tons worth $1.4 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.
Imports stood at 26.5 million tons worth $32 billion, registering a 38% and 21% increase in weight and value respectively.
The UAE with 8.9 million tons of exports worth $11.5 billion, China with 2.5 million tons worth $8.4 billion, Turkey with 2.9 tons worth $3.7 billion, Germany with 593,000 tons worth $1.4 billion and Switzerland with 1.6 million tons worth $1.3 billion were the top five exporters to Iran.
Latin America is a group of 20 countries and 13 dependencies in the Western Hemisphere where Spanish, French and Portuguese languages are predominantly spoken. The region covers an area stretching from the northern border of Mexico to the southern tip of South America, including the Caribbean.
Joint Chamber of Commerce With Brazil
Iran-Brazil Chamber of Commerce was inaugurated in a ceremony held in the presence of Iranian and Brazilian officials and parliament members, Mehr News Agency reported on Nov. 20.
Addressing the gathering, Iran's Ambassador to Brazil Hossein Gharibi expressed satisfaction with the inauguration of such an institution for Iranian and Brazilian private sectors.
He called for the expansion and diversification of relations between the two sides.
Brazil is an influential member of Mercosur, the envoy said, adding that Iran also boasts a good market and can facilitate relations between Mercosur and Eurasian countries.
Mercosur, officially known as the Southern Common Market, is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Brazil, Paraguay and Uruguay. Venezuela is a full member but has been suspended since 1 December 2016. Associate countries are Bolivia, Chile, Colombia, Ecuador, Guyana, Peru and Suriname.
Its main objective is to promote free trade and the fluid movement of goods, people and currency. Since its foundation, Mercosur's functions have been updated and amended several times; it currently confines itself to a customs union, in which there is free intra-zone trade and a common trade policy between member countries.
Ahmad Naderi, the head of Iran-Brazil Parliamentary Friendship Group, said with the opening of the chamber, exports from Iran to Brazil will increase to balance trade between the two countries as imports from the South American country currently outweighs exports.
He noted that Brazil is the eighth largest economy in the world and Iran's most important trading partner in the Americas.
Call for Normalization of Trade Tariffs With Brazil
Iran annually imports $5 billion worth of essential goods from Brazil at a customs duty rate of up to 4% while the Islamic Republic’s exports to the South American country is less than $100 million per year, says Fakhreddin Amerian, the head of the joint commerce chamber, adding that Brazil imposes over 100% in duties on Iranian exports.
Speaking to ILNA, Amerian called on parliamentarians to pass a bill for the formation of a preferential trade agreement between the two countries with the aim of cutting Brazil’s import tariffs on Iranian goods for a more balanced bilateral trade regime.
“Iran can boost its export of petrochemical products, gasoline, pistachio, raisins and dates to Brazil,” he added.
The official noted that Iran imports 50-60% of its essential goods from Brazil.
Also known as necessity goods, essential goods are products consumers will buy, regardless of changes in income levels.
