Iran and Turkey traded $1.18 billion worth of goods during the first three months of 2023 to register a 16.04% year-on-year decrease, latest data released by the Turkish Statistical Institute show.
Iran’s exports amounted to $622.71 million, down 26.7% while imports increased by 0.1% to $561.01 million.
Bilateral trade stood at $381.03 million in March, down 26.65% YOY, with Turkish exports at $183.32 million, down 2.44% YOY, and Iranian exports at $197.71 million, registering a 40.37% decline YOY.
Iran and Turkey traded $5.35 billion worth of goods in 2022 to register a 12.18% year-on-year rise. Iran’s exports stood at $2.91 billion, up 15.49% while imports grew by 8.47% to $2.44 billion
Bilateral trade stood at $4.77 billion in 2021 to register a 69.12% rise compared with the preceding year. Iranian exports stood at $2.52 billion, up 145.18% year-on-year, while imports grew by 25.5% to $2.25 billion.
Bazargan in Maku County is the most important Iranian land border for importing and exporting from and to Turkey. The city borders both Iraq and the Nakhchivan Autonomous Republic. Its customs office, established in the fiscal 1926-27, is the only international border between Iran and Turkey that works around the clock.
Trade Target Set at $30b During Erdogan’s Visit
Iran and Turkey have agreed to extend their gas supply contract for another 25 years and set an ambitious trade target of $30 billion, Anadolu Agency reported.
The agreement was reached during a recent meeting between Iranian President Ebrahim Raisi and his Turkish counterpart Recep Tayyip Erdogan in Tehran.
In his remarks at a joint presser with Erdogan after delegation-level talks, Raisi said the Turkish president’s visit to Tehran marks an "important turning point" in improving the level of cooperation between the two neighboring countries.
Raisi stressed that the level of trade and economic ties between Tehran and Ankara was inadequate and could be moved to a higher level, adding that the $30 billion trade target is achievable.
In the presence of the two presidents, Iranian and Turkish officials signed eight memoranda of understanding in political, economic, sports and cultural fields after bilateral talks.
According to a statement by Iran’s Presidential Office, agreements signed between the two sides include a comprehensive plan for long-term cooperation, support for small economic enterprises, radio and television cooperation, and cooperation between government departments.
The visit is the first by the Turkish president to Tehran since the formation of the new government in Iran last year.
The two leaders had met on the sidelines of the ECO Summit in Turkmenistan last November where they agreed on "the comprehensive improvement of ties”.
Besides bilateral talks, Erdogan also participated in trilateral talks with Raisi and Russian President Vladimir Putin in the Astana Format.
The agreement to boost trade ties came shortly after Iran’s Leader Ayatollah Ali Khamenei said in his meeting with the Turkish president that there was scope to further expand bilateral economic ties.
The target of a $30 billion trade volume was originally set between the two countries before the US reimposed sanctions on Iran in 2018.
Raisi expressed hope that the strategic cooperation document signed between the two sides will contribute to the "consolidation of bilateral relations".
He said the two sides also agreed on the development of industrial towns and science and technology parks with the help of knowledge-based industries.
The Iranian president further said the two sides discussed security cooperation, especially in securing joint borders. He said the security and intelligence bodies of the two countries can work together to bolster security and combat terrorism, narcotics and organized crimes.
“The two sides also discussed regional issues of common interest and emphasized that they must fight terrorism that threatens their security. Terrorism may have different names but it endangers the security of the region and must be addressed,” he said.
Raisi stressed that good relations between the two countries can lead to "better regional and international relations" and both countries can help bolster regional and international security.
Preferential Trade Agreement
Finalizing ongoing talks with Iran for the expansion of bilateral Preferential Trade Agreement is a priority for Turkey, the latter’s Energy and Natural Resources Minister Fatih Donmez said.
“The trade deal came into effect on Jan. 1, 2015, and negotiations are underway to expand the pact by increasing the number of products traded between Turkey and Iran,” Donmez told the virtual 28th Turkey-Iran Economic Commission convened earlier this year.
Customs cooperation was another topic discussed at the meeting. Both sides agreed to devise an electronic data interchange protocol to carry out a simplified border customs project and the mutual recognition of an Authorized Economic Operator project.
These projects will have a positive impact on foreign trade by enabling easier and faster trade while eliminating bureaucratic procedures based on mutual trust, he added.
Both sides agreed to assign technical teams in the near future for implementing the plans.
“The two sides also agreed to increase exhibitions and exchange trade delegations to show our [Turkey’s] concrete support and the great importance attached to cooperation between private sector representatives,” Donmez said.
“Support for the activities of the Turkey-Iran Business Council and other private sector establishments, notably small- and medium-sized enterprises, would also continue after the pandemic.”
Both sides also agreed to hold talks on developing an “action plan” between the Small and Medium Enterprises Development Organization of Turkey and its Iranian equivalent, Iran Small Industries and Industrial Parks Organization.
Donmez concluded that the commission also addressed other areas of cooperation, including health, energy, transportation, education, environment, agriculture and forestry.
