Statistics released by the Iran’s Customs Administration (ICA) on foreign trade in the 11 months ending to February 19 indicate that Asia accounted for 77 percent of Iran’s total imports and 92 percent of overall exports in terms of value, Persian economic daily Donya-e-Eghtesad reported.
Experts believe that opening lines of credit (LC) can help enhance exports. Managing director of the Export Guarantee Fund of Iran (EGFI) believes that opening LCs for trade purposes can help render the exports more competitive. Iranian goods are mostly imported via ‘cash-in-advance method’, he said. “However, opening LCs and applying risk insurance payments can bring about negotiation power for the Iranian sellers, while encouraging foreign customers to buy Iranian goods,” he noted.
Exports
According to the ICA report, Asia was Iran’s biggest export destination during the 11-month period, accounting for 92.44 percent of the overall exports value. China was the top destination for Iranian goods in Asia, accounting for 28.31 percent of total exports to Asia.
Europe followed Asia as a distant second, accounting for 1.63 billion or about 5 percent of Iran’s total exports during the period.
This is while Africa, America, and Oceania collectively accounted for only 2.5 percent of Iran’s $32.63 billion exports during the aforementioned period.
Africa, the third destination for export of Iranian goods, was home to $678 million or 2 percent of the country’s overall exports. Iran’s exports to Africa increased at a significant rate of 122 percent in terms of weight, compared to the similar period the previous year. However, in terms of value, it decreased by 14 percent. Egypt was the main importer of Iranian goods among African countries, accounting for 69.54 percent of total exports to the continent.
North and South America received only 0.38 percent of Iranian goods. The amount, however, has increased by a considerable 237 percent in terms of weight, while falling 17.76 percent in terms of value. Brazil was the main buyer of Iranian goods in the continent, accounting for 53.83 percent of the total Iranian exports to America.
Oceania stands at the bottom of the list, having imported only 0.08 percent of Iran’s exported commodities during the period. Of the total exports to the continent, 92 percent was to Australia.
The main commodities exported from Iran during the 11-month period included liquefied propane, liquefied butane, methanol, polyethylene film grades, bitumen, non-alloyed iron or steel products, pistachios, urea, and white Portland cement.
Imports
In terms of imports, once again Asia and Europe appear on top of the list, accounting for 77.37 percent and 20.58 percent of Iran’s total imports respectively.
In the past 11 months since the beginning of the current Iranian year (to end March 20), $37.33 billion worth of goods were imported from Asian countries, indicating a 12 percent increase compared to the similar period last year. China ranks as the first Asian exporter to Iran, accounting for 31 percent of Iran’s total imports from Asia.
Meanwhile Germany was the main European exporter to Iran, accounting for 21.93 percent of Europe’s total exports to Iran.
America contributed 1.5 percent to Iran’s total imports during the period, with 44.42 percent imports from the continent coming from Brazil, the top exporter to Iran from the continent.
Oceania accounted for 0.4 percent of Iran’s imports during the period, with Australia, as the main exporter, accounting for 83.3 percent of the continent’s exports to the country.
Africa contributed least to Iran’s imports during the period, with only 0.14 percent. South Africa was the biggest exporter, according to the report.
The ICA report has listed the top ten imported goods to the country in the 11-month period as follows: wheat grain, vehicles with motor capacities between 1500-2500cc, corn for livestock, rice, soy bean, LCD and LED display modules, non-alloyed iron or steel products, auto parts, transmitter and receiver devices for mobile phones, and barley.
