Economy, Business And Markets
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Trade Ties Renewed With Major Economies

Germany’s exports to Iran registered a 26% increase during the first half of the current fiscal year (started March 20) to reach $1.12 billion, making the European country the fifth largest exporter to Iran
Iran now ships commodities to export destinations directly, without intermediaries.Iran now ships commodities to export destinations directly, without intermediaries.
Iran’s non-oil foreign trade in the first half of the current Iranian year (March 2016-17) amounted to $42.14 billion

The imposition of economic sanctions was the most critical factor affecting Iran’s foreign trade in the past few years.

Sanctions not only resulted in a downturn in trade, they also restricted Iran’s economic interactions with a handful of regional countries. However, with the lifting of sanctions in early January—as part of the nuclear deal reached with six world powers–better known as the Joint Comprehensive Plan of Action–Iran is improving commercial ties with economies other than those of its next-door neighbors.

According to the latest report by the Islamic Republic of Iran Customs Administration, South Korea has cemented its place among Iran’s top five trading partners as Iran exported $1.78 billion worth of goods to and imported $1.57 billion from the East Asian country in the first half of the current Iranian year (started March 20).

Trade with Germany also saw a significant rise in the six-month period. The European country’s exports to Iran registered a 26% increase compared with the similar period of last year to reach $1.12 billion. Germany is now the fifth largest exporter to Iran.

Meanwhile, two-way trade with Iraq and the UAE declined in the first half of the year. Iran exported 3.41% fewer products to Iraq, while exports to and imports from the UAE fell by 18.59% and 17.3% respectively.

Emirati ports, notably Dubai’s Jebel Ali Port, played an active role in UAE-Iran trade during sanctions years, which mostly came in the form of reexports.

Head of Iran Export Confederation Mohammad Lahouti attributes the decline in trade with the UAE to the removal of sanctions and Iran’s uninterrupted transactions with other countries.

Sanctions against the Islamic Republic of Iran Shipping Lines and Shahid Rajaei Port in the southern Hormozgan Province had negatively affected Iran’s imports and exports. For instance, foreign ships would unload their cargo in the ports of Persian Gulf littoral states and the goods were then loaded on to boats that ferried the goods across to Iran, Mehr News Agency reported.

“As we speak, Iran now ships commodities to export destinations directly, without intermediaries,” Lahouti said.

“Thanks to the implementation of JCPOA, the country has established economic relations with developed countries such as South Korea. Security issues in the likes of Afghanistan and Iraq are nowhere to been seen in such countries."

Iran’s non-oil foreign trade during the first half of the current Iranian year amounted to $42.14 billion.

According to IRICA's latest report, H1 non-oil exports (March 20-September 21) hit $21.7 billion, indicating a 5.99% rise compared with the corresponding period of last year. Imports stood at $20.3 billion during the same period, registering a 2.61% decline year-on-year.

 

Financialtribune.com