Economy, Domestic Economy

Trade Agreement With Turkey Unbalanced

Trade Agreement With Turkey Unbalanced
Trade Agreement With Turkey Unbalanced

The preferential tariff agreement (PTA) signed between Iran and Turkey is unbalanced and is more in favor of Turkish companies than Iranian enterprises, Hamidreza Qaznavi, spokesman of ‘Iran Entrepreneurs Forum’ said on Saturday.

“This agreement is extremely harmful for domestic industries as it is easing the import of high-end industrial products from Turkey but in return, Iranian goods that are subject to tariff decrease are mostly agricultural and raw material products”, Qaznavi told criticizing conditions of the agreement.  

According to the agreement, tariffs on 125 types of Iranian goods have been cut in Turkey’s favor and those of 140 Turkish goods reduced in favor of Iran. Some of the Turkish products named in the agreement include medical supplements, health care products, tires, washing machines, ventilation systems, textile products, and furniture. On the other hand, Iranian products include yogurt, eggs, cheese, among others, Qaznavi said.

The preferential tariff system, which compels parties to levy lower rates of duty on imports from each other, is expected to further ease transaction of goods and services between the two sides. The PTA between Tehran and Ankara was signed on January 29, 2014 when the then Turkish Prime Minister (now President of Turkey), Recep Tayyip Erdogan, paid an official visit to Tehran.

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

Trade between Turkey and Iran stood at $22 billion in 2012 before dipping to $14.5 billion in the following year due to the economic sanctions imposed on Tehran by the West.