Economy, Business And Markets

Iran-Turkey Trade to Hit $30b

Iran-Turkey Trade to Hit $30b
Iran-Turkey Trade to Hit $30b

Iran and Turkey are both willing to increase their trade exchanges to $30 billion by the end of the current Iranian year (March 20, 2015), President Hassan Rouhani said Tuesday in New York.

The total value of trade between Tehran and Ankara stood at $6.5 billion in the first half of 2014, according to data released by Turkish Statistical Institute.

Trade between the two neighbors totaled $22 billion in 2012 before dipping to $14.5 billion in the following year, “largely due to the economic sanctions imposed on Tehran by the West”, TurkStat reported.

Iran and Turkey truly agree that their trade exchanges must increase, and for this year, the number can reach $30 billion, President Rouhani said on Tuesday in a meeting with his Turkish counterpart Recep Teyyip Erdogan, on the sidelines of this year’s UN General Assembly in New York.

Rouhani asserted that Tehran and Ankara should hold dialogue and exchange viewpoints to resolve their differences over minor issues.

Rouhani invited Erdogan to visit Tehran and attend the second session of Iran-Turkey Joint Strategic Cooperation Council, which aims to boost bilateral relations and accelerate implementation of joint ventures.

Back in June, Iran and Turkey signed 10 economic cooperation agreements during a visit to Ankara by the Iranian president. The two countries had signed a preferential trade agreement during Erdogan’s visit to Tehran back in January. The Turkish parliament for its part approved the PTA on September 10.

According to the Turkish Foreign Ministry website, after the start of the natural gas imports from Iran to Turkey in 2001, trade value grew steadily until 2008, when it reached $10.2 billion. Due to the global economic crisis, Iranian exports to Turkey dropped in 2009 by almost 60%, whereas Turkish exports remained stagnant in comparison to the corresponding figures of the previous year. In 2010, the trade volume rebounded and reached its peak with $10.6 billion.

Turkish exports to Iran are mainly machinery, motor vehicles, iron and steel products, electric devices, and tobacco products. Crude oil and natural gas account for the lion’s share of Iran’s exports to Turkey. In the last ten years, direct investments in Turkey from Iran exceeded $110 million.