Iran traded 81.19 million tons of goods worth $48.74 billion, excluding crude oil exports, with its 15 neighboring countries sharing land or sea borders, from the beginning of the current Iranian year on March 21, 2022 to the end of the 10th month of the year on January 20, 2023, registering 1.16% and 19.94% year-on-year rises in terms of tonnage and value respectively, new data released by the Islamic Republic of Iran Customs Administration show.
The UAE was the main trade partner of Iran during the period with 20.27 million tons (up 5.48%) of exchanged goods worth $19.77 billion (up 17.42%). It was followed by Turkey with 15.89 million tons (up 3.94%) worth $11.69 billion (up 33.52%) and Iraq with 24.33 million tons (down 9.97%) worth $9.08 billion (up 10.47%).
Iran’s exports to its neighbors stood at 63.28 million tons worth $25.73 billion, registering 4.45% and 26.57% rises in weight and value respectively.
Iraq was the biggest destination of Iranian exports during the period with 24.21 million tons (down 3.27%) of imports worth $8.92 billion (up 22.45%). It was followed by Turkey with 12.86 million tons (up 6.55%) worth $6.61 billion (up 45.95%) and the UAE with 9.26 million tons (up 2.63%) worth $4.82 billion (up 26.91%).
Imports stood at 17.9 million tons worth $23.01 billion to register 8.94% decline in weight, but 13.31% growth in value.
The UAE, with 11 million tons (up 8.01%) worth $14.95 billion (up 14.66%), was the biggest exporter to Iran followed by Turkey with 3.03 million tons (down 5.83%) worth $5.08 billion (up 20.2%) and Russia with 1.98 million tons (down 33.71%) worth $1.19 billion (down 9.81%).
The above figures on exports and imports show Iran registered $2.71 billion in trade surplus with its neighbors during the period.
Iran’s total exports, with the exception of crude oil, fuel oil, kerosene and excluding exports from suitcase trade, technical and engineering services and electricity, stood at 103 million tons worth $45.3 billion with world countries during the ten-month period, registering 2.93% and 17.66% rises in terms of tonnage and value respectively compared with the corresponding period of last year, according to the head of the Islamic Republic of Iran Customs Administration.
Mohammad Rezvani-Far told IRNA that the average value of each ton of exported products increased 14.31% to $440 during the period under review from $385 in the corresponding period of last year.
He noted that liquefied natural gas with $6.8 billion was the main exported good during the period as it accounted for 15.4% of the total exports in value.
The official added that imports during the same period stood at 31 million tons worth $48.5 billion, registering a 7.6% decline in tonnage but a 16.86% rise in value.
“The average value of each ton of imported goods grew 25.74% to $1,571 during the period from $1,249 in last year’s same period.”
Basic goods such as corn, rice, soybeans, wheat, sunflower oil, barley and soybean meal were the main imported goods during the period as they accounted for 57.6% and 21.2% of total imports in tonnage and value respectively.
“Import of cell phones stood at $2.28 billion, accounting for 4.7% of the total imports’ value,” the IRICA chief noted
He added that a total of 11 million tons of foreign goods were transited from Iran during the same period, registering a 7.4% year-on-year rise.
Neighborly Trade in Review
Iran traded 100.13 million tons of goods worth $51.87 billion with 15 neighboring countries during the last Iranian year (March 2021-22), according to Alireza Moqaddesi, former head of the Islamic Republic of Iran Customs Administration.
The tonnage and value of trade registered a 23% and 43% rise respectively compared to the preceding year.
Iran’s exports stood at 75.44 million tons worth $26.03 billion, registering a 12% and 29% rise in weight and value YOY, IRNA reported.
Iraq with $8.9 billion (up 21% YOY) topped the list of export destinations. It was followed by Turkey with $6.1 billion (up 141% YOY), the UAE with $4.9 billion (down 8% YOY), Afghanistan with $1.8 billion (down 20% YOY) and Pakistan with $1.3 billion (up 24% YOY).
Top five export destinations were followed by Oman with $716 million (up 63% YOY), Russia with $579 million (up 15% YOY), Azerbaijan Republic with $565 million (up 11% YOY), Turkmenistan with $335 million (up 144% YOY), Armenia with $304 million (no significant YOY change), Kazakhstan with $187 million (up 11%YOY), Kuwait with $158 million (up 2% YOY), Qatar with $134 million (down 20% YOY), Bahrain with $10 million (up 15% YOY) and Saudi Arabia with $41,400.
As for imports, Iran shipped in 24.68 million tons of products worth $25.84 billion from its neighbors during the same period, indicating a 68% and 60% growth in tonnage and value respectively compared with the year before.
The UAE was the top exporter to Iran with $16.5 billion (up 69% YOY). It was followed by Turkey with $5.3 billion (up 20% YOY), Russia with $1.7 billion (up 54% YOY), Iraq with $1.2 billion (up a whopping 790% YOY) and Oman with $619 million (up 43% YOY), Pakistan with $312 million, Kazakhstan with $78 million, Azerbaijan Republic with $42.6 million, Turkmenistan with $33.3 million, Afghanistan with $21.1 million, Armenia with $20.2 million, Kuwait with $14.8 million, Qatar with $9.6 million and Bahrain with $1.5 million.
Trade with neighbors stood at $36.45 billion in the fiscal 2020-21, down from $40 billion in the preceding year. Iran’s exports totaled $20.35 billion in the fiscal 2021-22, indicating a $4 billion decrease in value year-on-year. Imports were at $16.09 billion, unchanged compared with the previous year.
Iran’s Restricted Trade Portfolio
According to Majid Reza Hariri, chairman of the Iran-China Chamber of Commerce, the lion’s share of Iran’s foreign trade is with five countries, namely China, the UAE, Iraq, Turkey and Afghanistan.
“A limited number of trading partners is not a good idea for a country whose export destinations are limited. Each of these countries could become a risk if and when they get a greater share of Iran’s trade and dominate,” he told Persian daily Ta’adol.
“We are likely to get into trouble for whatever reason, including political issues, with these countries, which account for more than 15% of our trade each. All said, market diversity is a must for import and export. Now that Iran is under sanctions and cannot forge ties with Europe and the US, we need to concentrate on other markets, namely Southeast Asia, South Asia, Central Asia, Africa and Latin America.”
