Iran’s foreign trade, excluding crude oil exports, stood at 11.18 million tons worth $8.15 billion in the 10th month of the current fiscal year (Dec. 22-Jan. 20), registering a 19% year-on-year growth in terms of value, according to Rouhollah Latifi, spokesman of the Islamic Republic of Iran Customs Administration.
Exports in the month under review hit 8.09 million tons worth 3.62 billion, registering an 18% YOY growth in value.
China with 2.32 million tons worth $1.250 billion, Iraq with 1.57 million tons worth $514 million, Turkey with 385,000 tons of goods worth $400 million, the UAE with 724,000 tons worth $366 million and Afghanistan with 258,000 tons worth $127 million were the main export destinations, ILNA reported.
A total of 3.09 million tons of goods worth $4.53 billion were imported during the same period, registering a 20% YOY growth in terms of value.
The UAE with 1.29 tons worth $1.54 billion, China with 328,000 tons of goods worth $1.13 billion, Turkey with 285,000 tons worth $534 million, Germany with 79,000 tons of goods worth $149 million and Switzerland with 108,000 tons of goods worth $131 million were the main exporters to Iran during the month.
The IRICA spokesman added that a total of 1.07 million tons of foreign goods were transited through Iran during the period, registering a 61% growth year-on-year.
China with 2.32 million tons worth $1.250 billion was the biggest export destination and the UAE with 1.29 tons worth $1.54 billion was the biggest exporter to Iran
IRIB News earlier reported that Iran’s foreign trade (excluding crude oil exports) stood at 133 million tons worth $80.23 billion in the first 10 months of the current fiscal year (March 21-Jan. 20).
Exports stood at 100 million tons worth 38.76 billion, registering a 7% and 38% year-on-year growth in weight and value respectively.
China, Iraq, Turkey, the UAE and Afghanistan were the main export destinations.
Imports totaled 33 million tons worth 41.47 billion, registering a 17% and 34% YOY increase in weight and value respectively.
The UAE, China, Turkey, Germany and Switzerland were the biggest exporters to Iran during the period.
Iran’s non-oil foreign trade declined from $85 billion in the fiscal 2019-20 ($41.3 billion worth of exports and $43.7 billion of imports) to $73 billion in the fiscal 2020-21 ($34.52 billion exports and $38.5 billion imports).
According to the Trade Promotion Organization of Iran, there were four main reasons behind the decline in Iran’s foreign trade in the fiscal 2020-21 compared with the years from fiscal 2011-12 to 2013-14.
The main reason behind the decrease was the fall in oil revenues. The decline in revenues caused problems in the way of foreign exchange earnings and in buying raw materials for export products. Therefore, it caused a decline in exports during the period.
Currency shock is another reason behind the decline. One of the main variables affected by currency shocks is non-oil exports. Iran’s currency market faced an unprecedented shock in fiscal 2020-21 due to the intensification of US sanctions, the fall in foreign exchange reserves and the Covid-19 pandemic.
Alongside these problems, the Central Bank of Iran’s forex earnings law made some exporters unable to meet the CBI requirements, so they stopped exporting their products and waited for stability in the currency market and forex laws.
The US imposed sanctions on petrochemical industries and 39 related institutions, and the US Department of Treasury banned transactions, purchases, credit and insurance services to Iran by other countries.
Oil prices also impact petrochemical export and due to the low oil prices in fiscal 2020-21, alongside the US sanctions, petrochemical exports registered a decline.
The Covid-19 pandemic was another reason behind the significant decline in trade. Closure of borders, new standards for foreign trade and the wariness of other countries vis-a-vis exports, especially agricultural and food products, caused a decrease in Iran’s foreign trade.
