Iran, Turkmenistan trade transactions to rise to $10 billion

A view of the Bajgiran border crossing between Iran and Turkmenistan

The Islamic Republic of Iran and Turkmenistan seek to increase their trade exchanges to $10 billion in the near future as the two countries’ businessmen and merchants are considering a 100-percent growth in the value of trade exchanges.

The current value of annual trade transactions between Tehran and Ashgabat is $5 billion, while the figure stood at $1.3 billion in 2006.

A recent report by the Trade Promotion Organization of Iran on Iran- Turkmenistan trade relations shows that the two countries held six mutual cooperation meetings between 2001 and 2012.

The most important documents exchanged between the two countries were trade agreements on encouraging and supporting investment, agreements on avoidance of double taxation, and memoranda of understanding on business cooperation.

Iran is reportedly Turkmenistan’s second largest trade partner after Russia.

The Islamic Republic exports machinery, construction materials, sedans, buses, food stuff, agricultural and petrochemical products, electrical products and home appliances to Turkmenistan, and imports natural gas, electricity, textiles and agricultural products from its northern neighbor.

In July 2012, the foreign ministers of Iran and Turkmenistan signed a memorandum of understanding to increase trade volume and economic relations between the two countries.

“We will make our utmost effort to fulfill the wishes of the two countries’ presidents to improve the volume of trade and economic ties to $10 billion within the next years,” Iran’s Foreign Minister Ali Akbar Salehi told reporters at the time.

Iran and Turkmenistan have had official diplomatic relations since Turkmenistan’s independence from the Soviet Union in 1991. Iran was the first nation to recognize Turkmenistan as an independent country.

The two countries have maintained good relations ever since and have cooperated in the economic, infrastructure and energy sectors.

By Press TV


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