TCCIM Member: Iran’s Foreign Trade Policies ‘Misguided’

Having a positive view of trade surplus stems from a misunderstanding of the concept of trade balance, which is based on the goal of balancing import and export. However, the idea that a negative trade balance is per se unacceptable has been firmly rejected by economists. This was stated by Mehrad Ebad, a member of Tehran Chamber of Commerce, Industries, Mines and Agriculture, in a write-up for the TCCIM website. A translation of the text follows:
Since 2016, only 60 out of 200 countries have registered a trade surplus or positive trade balance. The idea that a negative trade balance is per se unacceptable has been firmly rejected by economists, as countries with the largest negative trade balance are now among the leaders of the global economy.
Iran’s trade balance has been positive at times, thanks to the sale of crude oil and oil products. The view that exports must outweigh imports at any price hurts the country’s development. Those who see importers as swindlers do not pay attention to the fact that having a negative view of import deprives the country of having cheap and high-quality raw materials.