Economy, Domestic Economy

Turkey Can Promote Iran’s Integration Into World Economy

Turkey Can Promote Iran’s Integration Into World EconomyTurkey Can Promote Iran’s Integration Into World Economy

Chairman of Foreign Economic Relations Board of Turkey Omer Cihad Vardan said Turkey can prove instrumental in Iran’s integration into the global economy, particularly western markets.

Vardan said Turkish companies have the capacity to turn Iran’s business potential into lucrative investments, particularly in sectors such as retail, construction and tourism through trade, investments and services, Turkey’s English newspaper Daily Sabah reported on its website.

Referring to Turkey’s strong presence in Iran’s market after the removal of western sanctions against Tehran over its nuclear energy program, he said Turkey’s exports to Iran will considerably increase in the short run “thanks to our old business relations and geographical proximity”.

Turkish Customs and Trade Minister Bulent Tufenkci also echoed similar remarks a few days ago when he said Turkey aims to triple trade with Iran to $30 billion as quickly as possible after the lifting of economic sanctions made banking transactions with the country easier.

“Banking and financial transactions have become easier (for Turkey) after the sanctions on Iran were softened, already boosting our business with Iran,” Tufenkci told Reuters in an interview in Ankara.

Giving a presentation titled “The Economic and Commercial Impact Analysis of Iran after Embargoes”, Vardan said Turkey’s Foreign Economic Relations Board, known by its Turkish acronym DEIK, is ready to provide all kinds of support for companies to seize new business opportunities and manage risks of engaging in the Iranian market.

Vardan said DEIK has four main priorities in the Iranian market: Modernization of the existing customs and logistical infrastructure, expansion of Turkish-Iranian preferential trade agreements and their conversion into free trade agreements, normalization of bilateral banking relations and expansion of Export and Credit Bank of Turkey’s (Eximbank) credit lines, and management of political, administrative and regulatory risks in the Iranian market.

In order to reach these objectives, he explained, DEIK is encouraging investment in the Iranian market, strengthening relations between companies and international finance institutions, establishing mechanisms in order to ensure cooperation between Turkish and European companies that eye business opportunities in Iran and emboldening both Turkish and Iranian public authorities in order to manage risks that Turkish companies might face.

  Iran 2nd After US on Turkish Exporters’ List

Stressing that Iran is a prime target for Turkish exporters, Turkish Exporters’ Assembly (known by its Turkish acronym TIM) President Mehmet Buyukeksi said: “We increased our exports to Iran by 25% with the lifting of sanctions as of January. In addition, according to the results of our Exporter Tendency Survey, Iran comes second after US on our exporters’ target country list.”

Indicating that Turkey’s relations with Iran would not be only limited to foreign trade and that Iran was a big potential in terms of making joint investments, Buyukeksi said Iran has the world’s largest natural gas reserves, fourth-largest oil reserves and the Middle East’s largest automotive industry as well as being a net exporter in electricity exporter with an upward trend.

Bilateral trade with Turkey reached $2.9 billion during the first four months of 2016, posting a 17% decline compared with the similar period of a year before, Turkish Statistical Institute’s data showed.

Turkish exports to Iran soared 25% to stand at $1.4 billion, while Iran’s exports to the neighboring country fell 37% to reach $1.5 billion, mainly as a result of falling oil prices.