TEHRAN- The spokesman of the Trade Development Committee of the Industry, Mining and Trade House, emphasizing that US pressures have not been able to stop Iran’s foreign trade, said: Iran’s geographical capacities, economic links with neighboring countries, and the development of cooperation with trade partners such as China, Russia, Pakistan, and Turkey have made it possible for the flow of foreign trade to continue.
Seyed Ruhollah Latifi, in an interview with IRNA, referring to US efforts to limit Iran’s foreign trade and impose pressure on neighboring countries to reduce or stop trade exchanges with the country, stated: Despite political and economic pressures, restrictions created on some trade routes, and attempts to prevent the entry and exit of goods, Iran’s foreign trade has not stopped, and the country’s economic actors, using geographical capacities, alternative routes, and regional transportation facilities, are still carrying out trade activities.
He added: The economy of Iran and neighboring countries is connected through shared borders, mutual economic needs, transportation networks, consumer markets, and supply chains. These links are not merely political, such that they could easily be cut by a change in one government’s position or pressure from a foreign power; rather, the economic interests of people, producers, traders, and economic actors on both sides of the borders lie in the continuation of these exchanges.
Latifi, stating that an important part of Iran’s trade with neighbors is still flowing, emphasized: In some neighboring countries, we have experienced growth in trade exchanges, and existing capacities at land borders, rail, road, and sea routes have made continued trade possible. Of course, at certain times restrictions have been created at a number of borders, but these cases cannot be interpreted as a halt in Iran’s trade with regional countries.
The spokesman of the Trade Development Committee of the Industry, Mining and Trad House, referring to the role of the private sector and economic actors in the country’s difficult conditions, said: Traders and merchants play a very important role in maintaining the flow of goods supply in these conditions. In fact, economic actors, by identifying new routes, establishing connections with various suppliers, using the capacities of intermediary countries, and finding diverse solutions for transportation and financial settlement, have not allowed the flow of entry of goods needed by the country to stop.
He continued: Today, basic goods, production inputs, livestock and food inputs, industrial raw materials, machinery, equipment, and pharmaceutical items enter the country through different routes, and in return, Iran’s export goods are also sent to target markets. These activities are carried out in conditions where external pressures on the banking network, transportation, insurance, foreign exchange exchanges, and cooperation of international companies have increased.
Latifi added: Economic actors use the country’s geographical capacities and trade relations with neighbors to maintain this flow. Diversifying import origins and export markets is also among the measures that have become more important in recent years, because excessive reliance on one route or one country can increase trade vulnerability in conditions of restrictions.
China and multiple goods transfer routes; trade from the East is still ongoing
Referring to China’s position in Iran’s foreign trade, he stated: A significant part of our country’s trade is conducted with China, and this country is considered one of Iran’s important trade partners. Trade relations with China are not limited to only one route, and goods are transferred to Iran through rail and road networks and by passing through several countries.
Latifi continued: Iran’s geographical position in connecting East to West and North to South has made it possible to use diverse transportation routes. Routes related to China’s Belt and Road Initiative, communication networks of Central Asia, the Caucasus, and Eurasia, as well as routes passing through Afghanistan, Pakistan, Iraq, Armenia, and the Republic of Azerbaijan, have created important capacities for goods transfer and trade development.
Referring to the possibility of using intermediary companies in some exchanges, he added: Part of international trade under conditions of restrictions is conducted through multi-country routes and intermediary companies. This, alongside direct road and rail routes, allows economic actors to use different options for transferring goods and meeting the country’s needs.
The spokesman of the Trade Development Committee of the Industry, Mining and Trade House said: In the field of medicine and raw materials needed by the pharmaceutical industry, the restrictions created for some supply origins have increased the necessity of diversifying import sources. In such conditions, the capacities of other countries are used, and China also has a share in part of these supplies. The main goal is to prevent disruption in the supply chain of medicine and raw materials needed by domestic production.
Trade with Pakistan; economic interests of both sides prevent cutting of border relations
Latifi, referring to trade relations between Iran and Pakistan and some restrictions created at the borders of the two countries, stated: Economic relations between Iran and Pakistan have been formed based on mutual needs. Parts of Pakistan’s economy need Iranian energy and goods, and in return, this country is also considered an important trade origin and goods supply source for Iran in some areas.
He said: At one point, we witnessed restrictions and the closure of the Rimdan border following external pressures, but economic needs and the direct effects of trade on the lives of people in border areas highlighted the necessity of restoring trade relations. When trade between two countries affects employment, income, goods supply, and people’s daily lives, restricting it does not harm only the Iranian side; rather, economic actors and the people of the other country also suffer.
He added: One of the characteristics of border trade is that its benefits are directly visible in the lives of people in border areas. Truck drivers, transportation companies, sellers, producers, exporters, and importers on both sides of the border benefit from these activities; therefore, the continuation of trade is important for both sides.
The spokesman of the Trade Development Committee of the Industry, Mining and Trade House, referring to announced restrictions in the maritime transportation sector and claims made about the halt of Iran’s trade via sea, stated: The country’s maritime trade also continues despite pressures and restrictions, and activities in the field of energy, petroleum products, and container goods have not stopped.
He continued: Iran’s foreign trade network does not rely only on land borders. The country’s southern ports, sea routes, and also the capacity of the Caspian Sea form an important part of foreign trade infrastructure. Economic actors, using existing facilities at ports and maritime transportation routes, are still carrying out exchanges.
Latifi stated: In the north of the country as well, Iran’s ports and maritime routes related to Caspian littoral countries have created important capacity for trade with Russia and other regional countries. The connection of ports to the rail and road network makes it possible to transfer goods from the north of the country to other areas and also to move goods among Caspian littoral countries.
He added: Developing the activity of northern and southern ports, completing loading and unloading infrastructure, increasing the capacity of the transportation fleet, and improving the connection of ports to the country’s rail network can be effective in increasing the share of maritime transportation and reducing foreign trade costs.
Latifi, referring to the importance of developing trade relations with Russia and member countries of the Eurasian Economic Union, stated: An important part of inputs needed for production, including livestock and food inputs, is supplied from the Eurasian region and especially Russia. This issue has become more important in the current conditions, because the continuation of production in agriculture, livestock, and food industries depends on regular access to raw materials and inputs.
He continued: Relations between Iran and Russia have expanded in various political and economic areas in recent years, and joint agreements and cooperation between the two countries have provided the ground for developing exchanges. On the other hand, both countries have experience facing restrictions caused by sanctions, and this very issue has caused them to seek more diverse methods in trade exchanges.
The spokesman of the Trade Development Committee of the Industry, Mining and Trade House emphasized: Using the capacity of goods barter, alternative mechanisms for settling financial exchanges, diversifying payment methods, and developing cooperation among trade companies are among the solutions that can be effective in continuing trade between Iran and Russia.
He added: Developing cooperation with Eurasian countries, in addition to meeting domestic needs, also creates a suitable opportunity to increase Iran’s exports. The markets of this region, due to geographical proximity and economic capacities, can be a suitable destination for Iranian products, and through the development of rail, road, and sea routes, trade relations with these markets can be strengthened.
Strategic importance of president’s regional visit
Latifi, referring to the recent visit of the president to Turkey, said: This visit is of great importance from the perspective of developing relations with neighboring countries and strengthening regional diplomacy. Turkey is one of Iran’s most important neighbors and one of our country’s main trade partners, and the relations between the two countries are not limited to bilateral trade; rather, they are also important in the fields of transit, transportation, energy, regional security, and connection with international markets.
He added: Turkey is geographically located in a position that can be an important communication route between Iran and Europe. On the other hand, Iran also has transit capacities for connecting Turkey to parts of Central Asia, Afghanistan, and the markets of the East of the region; therefore, relations between the two countries should be considered within the framework of a broader network of regional cooperation.
Latifi referred to the membership of Iran and Turkey in the Economic Cooperation Organization (ECO) and said: Both countries are important members of this organization and have considerable capacities for developing economic cooperation. ECO can be a suitable platform for facilitating trade, developing transportation, strengthening customs communications, and creating coordination among regional countries.
He continued: One of the important issues in the economic relations between Iran and Turkey is better use of the capacity of regional corridors. The road and rail routes of the two countries can play a role in transferring goods from Europe to Central Asia and vice versa. Also, developing border infrastructure and reducing truck stop time at customs terminals can reduce trade costs and increase the competitiveness of Iran’s transit routes.
The spokesman of the Trade Development Committee of the Industry, Mining and Trade House, referring to Turkey’s position among Iran’s trade partners, added: This country has always been among Iran’s important trade partners, and in recent years new capacities have been formed to increase exchanges between the two countries. In conditions where external restrictions on Iran’s trade have increased, strengthening cooperation with Turkey can play an effective role in diversifying trade routes and accessing new markets.