LEGAL UPDATE: December 2023
Iran has experienced notable growth in its non-oil exports during the first nine months of the current calendar year, with a 26.48% increase in weight, though a 0.68% decline in value compared to the previous year, according to Mohammad Rezvani-Far. The total exports, including oil, electricity, and technical and engineering services, reached $63.97 billion. This is the first time that customs statistics have included the export of oil, electricity, and technical and engineering services alongside non-oil goods, aiming for transparency in foreign trade performance.
Rezvani-Far disclosed that the value of oil exports stood at $26.46 billion, electricity at $300 million, and technical and engineering services at $780 million during the nine-month period. Iran also imported 28.7 million tons of goods worth $48.42 billion in the same period, with a 12.29% rise in value and 6% growth in weight year-on-year.
Major export destinations for Iranian goods included China, Iraq, the UAE, Turkey, and India, while the UAE, China, Turkey, Germany, and India were the main sources of imports. Iran's overall trade value increased by 7% during the first nine months of the current Iranian calendar year compared to the same period last year.
In the previous Iranian calendar year (1401), non-oil exports rose by 10% to 122.056 million tons, valued at $53.166 billion. Key export destinations included China, Iraq, Turkey, the UAE, and India. Imports during the same period amounted to 37.18 million tons, valued at $59.655 billion, with the top supplier countries being the UAE, China, Turkey, India, and Germany. Overall, Iran's non-oil trade reached 159.236 million tons, worth $112.821 billion, with an 11.2% growth year-on-year.
During a meeting in Moscow, Andrey Slepnev and Iranian Ambassador Kazem Jalali disclosed plans for the imminent signing of a Free Trade Agreement (FTA). Describing the FTA as a paramount cooperation document between Iran and the Eurasian Economic Union (EAEU), Slepnev underscored its significance, a sentiment echoed by Jalali, who emphasized the FTA's outcome of extensive negotiations and a shared commitment to enhancing bilateral relations.
The collaboration between Iran and the EAEU began in 2018 with the establishment of a Preferential Trade Agreement (PTA), effective from October 27, 2019. Subsequently, negotiations were initiated to elevate the PTA to a more comprehensive Free Trade Agreement (FTA), building on its successful implementation.
In August, Slepnev expressed the EAEU's readiness to boost annual trade with Iran to $30 billion, highlighting the completion of the draft for the FTA and its readiness for approval and signing. He expressed optimism that the FTA between the EAEU and Iran would be finalized and signed by the end of 2023.
The member states of the Eurasian Union are strongly committed to enhancing cooperation with Iran, and the agreement is anticipated to swiftly receive approval in their respective parliaments. Slepnev highlighted the substantial impact of the existing PTA, leading to a doubling of trade between Iran and the EAEU, expressing optimism that the forthcoming FTA would replicate this success, further doubling bilateral trade.
The comprehensive agreement, once signed, is expected to create favorable conditions for mutual market access. Slepnev acknowledged the current moderate trade volume with Iran and deemed targeting $30 billion in annual trade a significant step toward fostering increased economic exchanges between the countries.
Established in 2015 by the Russian Federation, Kazakhstan, and Belarus, the Eurasian Economic Union later welcomed the Republic of Armenia and Kyrgyzstan into its membership.
National Ports and Maritime Day Conference Witnessed signing of 31 contracts and memorandums of understanding (MOUs) Valued at $1 Billion with domestic and International Private Sector Firms for Investment in national ports.
As reported by the country's Ports and Maritime Organization (PMO), senior officials, including Transport and Urban Development Minister Mehrdad Bazarpash, PMO Head Ali-Akbar Safaei, and Head of the Parliament’s Construction Committee Mohammadreza Rezaei Kochi, attended the signing ceremony of the aforementioned agreements and MOUs.
Private firms will undertake development projects in key ports, including Shahid Rajaei, Imam Khomeini, Bushehr, Amirabad, Shahid Beheshti, Anzali, and Nowshahr, as stipulated by the agreements. Additionally, a separate agreement was signed for the construction of 50 passenger ferries, with a total investment of approximately $200 million.
In November, Safaei revealed the PMO's ambitious plan to attract $2.0 billion in investments for advancing the country's ports and maritime sectors, with the private sector contributing $900 million and the PMO covering the remaining funds. Private contractors have already committed to projects valued at around $120 million in collaboration with the PMO.
Safaei emphasized the need for a comprehensive approach, stressing the importance of integrated, coordinated, and agile management at the highest levels to achieve broader developmental objectives in the maritime sector.
As Iran contends with the economic impact of U.S. sanctions, the government is actively promoting the development of ports and encouraging investments to facilitate trade, particularly for essential goods. The Ports and Maritime Organization has outlined an extensive project portfolio aimed at doubling the country's port capacity within five years, reporting a significant increase from 180 million tons in 1392 to 250 million tons in 1399.
Iran has experienced notable growth in its non-oil exports during the first nine months of the current calendar year, with a 26.48% increase in weight, though a 0.68% decline in value compared to the previous year, according to Mohammad Rezvani-Far. The total exports, including oil, electricity, and technical and engineering services, reached $63.97 billion. This is the first time that customs statistics have included the export of oil, electricity, and technical and engineering services alongside non-oil goods, aiming for transparency in foreign trade performance.
