Brazil’s Minister of Agriculture, Livestock and Food Supply Tereza Cristina is scheduled to visit Iran later this month to discuss ways of boosting trade ties with the Islamic Republic.
“The Brazilian government has announced that it intends to increase its relations with Iran. Tereza Cristina is the first minister of the incumbent Brazilian government to visit Iran,” Fakhreddin Amerian, the head of the Iran-Brazil Chamber of Commerce, was quoted as saying by the news portal of Iran’s Chamber of Commerce, Industries, Mines and Agriculture.
The visit is scheduled to begin on Feb. 18.
Noting that Iran hopes to increase exports to Brazil, Amerian said a group of businessmen will be accompanying the Brazilian minister to buy petrochemicals from Iran.
According to Hamed Amini, the Vice Chairman of Arak Chamber of Commerce, petrochemicals, nuts and dried fruit are Iran’s main exports to Brazil.
“In order to increase trade in terms of both exports and imports, it is necessary to reduce preferential tariffs between the two countries and establish a more balanced tariff regime,” he said.
According to Amerian, Iran annually imports more than $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 are less than $100 million per year. Brazil imposes over 100% in duties on Iranian exports.
He 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.
Iran-Brazil Chamber of Commerce was inaugurated in a meeting 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.
Officially the Southern Common Market, Mercosur 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.
Mercosur's purpose 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 many 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 that 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.
Iran’s Top Trade Partner in Americas
Naderi noted that Brazil is the eighth largest economy in the world and Iran's top trade partner in the Americas.
Iran traded 1.48 million tons of non-oil commodities worth $996.82 million with Latin American countries during the current fiscal year’s first 10 months (March 21, 2021-Jan. 20), latest data released by the Islamic Republic of Iran Customs Administration show.
Trade with Brazil stood at 1.18 million tons worth $594.54 million, for the Latin American country to top the list of Iran’s partners in the region.
It was followed by Argentina with 261,567 tons worth $357.48 million and Venezuela with 32,592 tons worth $36.8 million.
Iran’s exports totaled 326,373 tons worth $138.73 million during the period under review.
Brazil topped the list of export destinations among Latin American nations with 291,909 tons worth $114.69 million. It was followed by Venezuela with 32,452 tons worth $19.67 million and Mexico with 374 tons worth $1.78 million.
Imports, which stood at 1.15 million tons worth $858.09 million during the period under review, mainly came from Brazil with 887,560 tons worth $479.86 million, Argentina with 261,104 tons worth $356.57 million and Venezuela with 140 tons worth $17.13 million.
Iran’s total foreign trade (excluding crude oil exports) stood at 133 million tons worth $80.23 billion during the period.
Exports stood at 100 million tons worth $38.76 billion, registering a 7% and 38% year-on-year growth in weight and value respectively. Imports totaled 33 million tons worth $41.47 billion, registering a 17% and 34% YOY increase in weight and value respectively, IRIB News reported.
