Domestic Economy

Trade With Turkey Declines by 21%

Trade With Turkey Declines by 21%
Trade With Turkey Declines by 21%

Iran and Turkey traded $1.85 billion worth of goods during the first five months of 2023 to register a 21.12% year-on-year decrease, latest data released by the Turkish Statistical Institute show.
Iranian exports amounted to $920.89 million, down 34.06% while imports declined by 2.1% to $930.57 million.
Bilateral trade stood at $377.45 million in May, down 11.85% YOY, with Turkish exports at $206.46 million, up 18.29% YOY, and Iranian exports at $170.98 million, registering a 32.6% decrease 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.
"Iran’s annual trade with Turkey is targeted to reach $15 billion within two years in view of the preferential trade agreement between Tehran and Ankara," Farzad Piltan, the head of Trade Promotion Organization’s West Asia Department, said recently. 
Noting that the current Preferential Trade Agreement between Iran and Turkey includes the trading of 400-500 types of goods at preferential tariffs, he said some of these goods are subjected to sanctions, IRIB News reported.
According to the official, technical and engineering services, reexports and joint production are among high-potential areas of cooperation between Iran and Turkey.
“Finalizing ongoing talks with Iran for the expansion of bilateral Preferential Trade Agreement is a priority for Turkey,” Turkish Energy and Natural Resources Minister Fatih Donmez said in 2021. 
“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.

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