Iran exports $2.5b of commodities to Turkey during January-May

Tehran Times – According to the data released by Turkish Statistical Institute, the country imported $2.57 billion of goods from Iran during January-May of this year, which shows 25 percent drop from $3.435 billion in the same period of time in 2018.

The released data also show that Turkey’s exports to Iran during the five-month period of this year has fallen 10 percent to $1.022 billion from $1.139 billion in the first five months of 2018, Tasnim news agency reported.

Iran-Turkey worth of trade stood at $3.592 billion during January-May 2019, dropping 25 percent from $4.574 billion in the same period of time in the past year.

On May 19, Turkish ambassador to Iran said his country wants the barriers in the way of trade with Iran to be removed, IRNA reported.

The envoy said if some of the obstacles are removed, Turkish businessmen and investors would be keen to come to Iran.

“The obstacles facing Turkish investors, which are often related to Iran’s regulations, should be resolved”, Derya Ors said at a meeting with Tehran’s governor.

Turkish merchants are now well represented in Iran and have invested in units such as Razi and Pars Hayat petrochemicals, he said.

Ors went on to say that the existing barriers to Turkish investment in Iran are more in keeping with the rules that prevent investors from investing in some fields.

The Turkish ambassador in Iran said: “These issues are regularly reviewed by the two governments on the negotiation table, and all the doors are open for negotiations.”

He also announced that the meeting of Iran-Turkey Joint Economic Committee will be held in summer or fall of this year, and members will discuss all the existing problems and solutions for removing obstacles.

On June 14, Head of Iran-Turkey Joint Chamber of Commerce said Turkey’s trade center in Tehran is completely active and the trade is going smoothly between the two countries.

“Although there are small problems with money transactions but still we manage and the trade is going on smoothly,” Reza Kami told ILNA.

Kami noted that Turkish companies are willing to contribute to the reconstruction projects in the flood-stricken regions, saying “Turkish companies have a good history in manufacturing prefabricated houses, and in recent years we have seen that a few Turkish companies were active in Mehr Housing Projects.”

He further mentioned establishment of an Iran-Turkey special economic zone, noting that the two sides are determined in this regard but there are still some issues that should be discussed and resolved.

Mentioning the impact of sanctions on trade between the two countries, Kami said: “The Turkish authorities have repeatedly stated that they are not going to comply with the U.S. sanctions, but obviously the sanctions have created some problems regarding banking relations, and it should be also borne in mind that the entire region’s economy is in recession.”

In early June, Iran’s Ambassador to Turkey Mohammad Farazmand announced that Iran and Turkey are working on a financial mechanism channel to bypass the U.S. unilateral sanctions.

The ambassador said that such mechanism is aimed at preventing bilateral trade from falling victim to trans-regional players.