Iran’s trade with Shanghai Cooperation Organization’s member states, excluding crude oil exports from the country, stood at 42.91 million tons worth $33.84 billion during the first 10 months of the current Iranian year (March 21-Jan. 20), registering a 4.9% and a 23.07% year-on-year rise in terms of weight and value respectively, latest data released by the Islamic Republic of Iran Customs Administration show.
China with 29.17 million tons (up 10.19%) worth $12.69 billion (down 39.5%) was Iran’s main trade partner among SCO member states during the period. It was followed by India with 5.91 million tons (down 9.07%) worth $2.4 billion (down 9.88%) and Russia with 3.11 million tons (down 20.23%) worth $1.19 billion (down 34.09%).
Iranian exports hit 34.72 million tons worth $16.58 billion during the period, registering a 3.42% and a 10.05% growth in weight and value YOY, respectively.
China with 25.55 million tons (up 8.19%) worth $12.6 billion (up 10.11%), India with 4.27 million tons (down 21.45%) worth $1.6 billion (up 8.54%) and Pakistan with 2.78 million tons (up 16.02%) worth $1.14 million (up 12.4%) were the main export destinations.
Imports stood at 8.19 million tons worth $17.26 billion during the 10 months to register an 11.65% and 38.86% growth in weight and value year-on-year, respectively
China with 3.62 million tons (up 27.13%) worth $12.69 billion (up 33.24%), India with 1.63 million tons (up 54.45%) worth $2.4 billion (up 103.9%) and Russia with 1.98 million tons (down 33.71%) worth $1.19 billion (down 9.81%) were major exporters.
Iran's President Ebrahim Raisi on Tuesday issued an order for implementing the law on Iran's membership in the Shanghai Cooperation Organization.
The directive was issued in a letter signed by Raisi to the Iranian Foreign Ministry, according to the website of the Iranian Presidential Office.
Last week, Iran’s Parliament Speaker Mohammad Baqer Qalibaf submitted the law for Iran's SCO membership to Raisi for final approval and implementation.
The move followed the Iranian Guardians Council spokesman's announcement that the vetting body had approved the bill on the country's membership in SCO.
In November 2022, the Iranian Parliament approved the bill for Iran's SCO membership by an overwhelming majority of lawmakers.
Iran signed a memorandum on Sept. 16 during a summit in Samarkand, Uzbekistan, for joining the security bloc, the largest regional body in the world in terms of population governed.
SCO was established in Shanghai in 2001 by China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan, and was joined by India and Pakistan in 2017.
Asian Multilateralism
Helping the country to protect its core interest amid the US-led sanctions that have crippled its economy, Iran’s accession to Shanghai Cooperation Organization demonstrates Tehran’s commitment to Asian multilateralism, Asian News International wrote citing the Policy Research Group.
“The SCO accession is seen as a positive step forward for Iran, rather than a diplomatic triumph for the country which has long been battered by Western sanctions giving a blow to its economy. Iran can lead the way in emerging as a key partner for India and other Asian nations, especially through the International North-South Transportation Corridor.”
Beginning with only six members in 2001, the SCO eventually grew to a limited membership of eight when India and Pakistan joined in 2017. Iran is being welcomed as only the ninth member of the organization, though many more are now in line. Membership will grant Tehran top level contacts and economic cooperation with Russia, China, India, Pakistan, and several Central Asian countries — nearly half the population of the world, making up 28% of the global GDP.
“Sanctions disrupted the trade patterns, but Iran’s response to the US maximum pressure has been to focus on its immediate neighbors as well as on Eastern powers. The policy is primarily driven by security as well as economic imperatives. A full SCO membership will further facilitate Iran’s trade with Asian powers and Russia, compensating for the decline in trade with the EU that has decreased due to US sanctions,” Vienna-based strategy consultant Bijan Khajehpour told Responsible Statecraft.
The Shanghai Cooperation Organization is a Eurasian political, economic and security organization. In terms of geographical scope and population, it is the world's largest regional organization, covering approximately 60% of the area of Eurasia, 40% of the world population and 30% of global GDP.
Iran’s accession to the Shanghai Cooperation Organization is a watershed event for diplomacy, which can open up new frontiers for the country’s economy as well, says Mohammad Lahouti, the head of Iran Export Confederation.
“A good opportunity has been provided for the country to shift its economic approach to focus on the development of foreign trade with these countries and boost its economic cooperation with the members of Shanghai Pact. In doing so, the country will be bound to contribute to the 25% GDP of the world and increase its role on the economic front,” he was quoted as saying by the Persian economic daily Donya-e-Eqtesad.
“Iran has unparalleled capacities through which cooperation with SCO members can be facilitated. The country is practically located on corridors extending from north to south and west to east; Iran remains the most important corridor to cross West Asian region, although many countries tried to somehow replace it over these years. According to statistics, the country has one of the largest oil and gas reserves in the world, which are needed by China and India, two key members of SCO.”
