Iran and Turkey traded $1.47 billion worth of goods during the first four months of 2023 to register a 23.18% year-on-year decline, latest data released by the Turkish Statistical Institute show.
Iranian exports amounted to $749.9 million, down 34.38% while imports declined by 6.69% to $724.1 million.
Bilateral trade stood at $290.62 million in April, down 42.89% YOY, with Turkish exports at $163.12 million, down 24.32% YOY, and Iranian exports at $127.49 million, registering a 56.54% 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 related to small economic enterprises, radio and television and 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 trade target of $30 billion 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.
Raisi Calls for Expansion of Ties During Erdogan’s New Tenure
Raisi congratulated his Turkish counterpart Recep Tayyip Erdogan for reelection, calling for the further deepening of ties between Tehran and Ankara during Erdogan’s new term in office.
In a telephone conversation with Erdogan on Tuesday after his victory in the presidential election, Raisi stressed the effective role of Iran and Turkey in promoting stability and security in the region, calling for the further acceleration of cooperation to serve the interests of regional countries, Fars News Agency reported.
He expressed hope that economic, political, security, cultural and trade relations between the two countries will further expand during Erdogan’s new term in office.
Iran's president noted that close collaboration between Tehran and Ankara would provide more suitable conditions for promotion of peace in the region.
Erdogan appreciated the goodwill of the Iranian president, saying the process of expanding relations between his country and Iran in various fields will continue with greater strength and steadfastness.
He also expressed Turkey's willingness to continue regional cooperation, including in the framework of quadrilateral cooperation among Turkey, Iran, Russia and Syria more seriously.
The Turkish president said such cooperation will have positive and effective results in strengthening stability and security in the region, as well as expanding economic and commercial relations.
Erdogan, 69, won Turkey’s presidential election on Sunday, defeating opposition leader Kemal Kilicdaroglu in Sunday’s runoff vote and stretching his rule into a third decade.
Iran and Turkey have developed close relations in recent years.
Iranian Government Spokesman Ali Bahadori Jahromi reiterated that President Raisi’s foreign policy is basically built on good neighborliness. He stated that Tehran is willing to further expand relations and cooperation with its neighbors, despite enemies' opposition.
Iran has significantly expanded bilateral collaborations with its neighbors in recent months, especially in trade and commerce.
In the last two decades with Erdogan at the helm, relations between Tehran and Ankara have grown. Turkey has been among the few countries resolutely opposing the illegal US sanctions against Iran.
On the other side, Iran was among the first countries to denounce an attempted military coup staged against the Erdogan government in 2016 and was also among the first to send humanitarian aid and relief teams during February’s devastating earthquake in Turkey.
Preferential Trade Agreement
Finalizing ongoing talks with Iran for the expansion of the 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.
