Domestic Economy

PTA With Turkey Will Benefit Domestic Manufactures

PTA With Turkey Will Benefit Domestic ManufacturesPTA With Turkey Will Benefit Domestic Manufactures

Iran and Turkey have been pursuing closer economic ties over the past two decades. Iran penned its first preferential tariff agreement (PTA) with Turkey when Prime Minister Recep Tayyip Erdogan visited Iran in January. According to the agreement, 125 Iranian goods and 140 Turkish goods are to be traded at preferential tariff rates.

While some experts view the government’s policy to reduce import tariffs on Turkish goods as a move in Turkey’s favor and harmful to domestic manufacturers, authorities believe the policy will benefit domesticsmanufacturers in the long run, as it will provide a competitive atmosphere for Iranians, encouraging them to produce quality products in accordance with international standards and latest technological developments.

“The PTA between Iran and Turkey will ultimately work to the advantage of Iranian manufacturers as it will encourage them to produce quality products,” minister of communication and information technology and Special presidential aide on Turkey’s Affairs, Moahmoud Va’ezi said in a meeting with the East Azerbaijan Province business community on Thursday, responding to the criticism that the PTA with Turkey would cripple domestic manufacturing.

He cited the example of Turkey joining the EU, saying: “Turkish businessmen were initially against Turkey’s decision to join the EU, arguing that they could not compete with the European products. However, the move led to an improvement in the quality of Turkish products as the manufacturers tried to meet EU standards.”

Also, noting that the PTA is subject to quarterly revisions, he said Iranian business concerns will be taken into consideration while revising the agreement.

He encouraged Iranian traders to adopt what he called “modern and scientific trade principles” to better understand the target markets and succeed in the international business environment, which would “take Iran a step closer to joining the World Trade Organization (WTO).”

“Every country has its own trade rules and regulations that must be understood by anyone who wants to trade,” said Va’ezi.

Iran has been seeking to join the WTO for more than 18 years; however its efforts have been hindered due partly to opposition from some political groups at home and a lengthy standoff with the US and EU over Tehran’s nuclear energy program.

  Turkish Presidential Aide to Visit

Meanwhile, Turkish minister of development and special presidential aide on Iran’s Affairs, Cevdet Yilmaz met with Iranian ambassador to Turkey, Alireza Bigdeli to discuss the details of trade between the two countries, prior to heading a high-ranking Turkish delegation to Tehran, IRNA reported on Thursday.

As part of the official meeting, the two sides briefly discussed bilateral cooperation in the areas of energy, investment, privatization, transportation, tourism, banking, cultural and industrial relations. The two underlined the important role of chambers of commerce in boosting trade relations.