Economy, Domestic Economy

Neighboring Markets Could Be Lost to Rivals

Neighboring Markets Could Be Lost to RivalsNeighboring Markets Could Be Lost to Rivals

Having shared borders and speaking the same language cannot guarantee Iran’s success in trade with neighboring countries, said a board member of Tehran Chamber of Commerce, Industries, Mines and Agriculture, Farhad Fozouni.

“Competitive production and stable economic policies are crucial factors that can ensure a positive balance of trade with our neighbors,” he added.

In an interview with ISNA, Fozouni warned that despite having a positive balance of trade with neighboring countries such as Iraq, Afghanistan and Turkmenistan, Iran could lose these markets to rivals such as Turkey if it fails to improve production efficiency.

“There are many countries willing to export to Iran, but not many countries import Iranian products. Therefore, we must establish closer relations with countries that import Iranian goods,” he said.

Noting that Turkey’s economy and export products are comparable with those of Iran in many ways, the expert said Turkey has been able to penetrate into regional markets such as Afghanistan, mainly because of its high production rate.

“Turkey has managed to gain a foothold in Central Asian markets such as Afghanistan, even without having shared borders or a common language with the country,” he said.

He also referred to the Iraqi Kurdistan where Chinese products have gained in popularity because of their competitive prices.

To compete with countries such as Turkey and China for securing a bigger share in the regional markets, Fozouni believes Iran needs to lower costs and improve efficiency in production.

He also emphasized the need for stable economic policies. “So long as economic laws and regulations are changed abruptly every now and then, investors, exporters and business-owners will not be able to draw long-term development plans,” the official noted.