Azerbaijan, Baku, Feb. 16 / Trend, A.Yusifzade /
Iranand Turkey signed a memorandum of understanding (MoU) to create a common trade border of Razi-Kapikoy, Iran Daily newspaper reported.
The MoU was signed on Tuesday between Economy Minister Shamseddin Hosseini and Turkish State Minister Cevdet Yilmaz in a special ceremony.
"In negotiations between President Mahmoud Ahmadinejad and President Abdullah Gul, the two sides reached an understanding on expanding two-way cooperation in banking and insurance
sectors," IRNA reported quoted Hosseini.
Iran and Turkey want to expand monetary exchanges, he said. "This has had good progress given the efforts and collaboration of the central banks of the two countries. But, I personally think the pace of all related measures should increase."
He recalled that the volume of bilateral banking ties is not proportionate to the economic potentials of either side.
"We are keen to expand two-way banking ties, especially with Turkish state-run banks."
Yilmaz said one of the focal points in negotiations with Iranian officials was issues related to expanding trade in free trade zones and also easing up customs-related affairs.
The two sides also held talks on the newly-established joint company of the two countries.
TurkeyWelcomes Investment
Head of Turkish Chamber of Commerce Rifat Saricaoglu on Tuesday called for Iranian investments in Turkey and advised Iranian businessmen not to make all their investments in Dubai.
Addressing the Iran-Turkey conference, he said trade hurdles between Iran and Turkey should be removed, adding the existing trade tariffs hinder expansion of bilateral trade, Mehr News Agency reported.
Saricaoglu referred to his country's experience on setting trade tariffs in trade with European states. "This year, Turkey lowered its customs tariffs for trade with European countries. Although the Chamber of Commerce complained about this, after passage of some time top opportunities were provided for Turkish merchants and at present trade in Turkey has found its course of action."
"In a place where trade is booming, fighting and quarrels have no place. Now, we witness that European countries have established trade with their neighbors," he added.
"Europe is a region which has experienced two world wars while there was no war in the past 70 years and this was because of trade. Therefore, Iranian politicians with the assistance of their Turkish counterparts should find a solution to trade-related woes. At present, Turkish and Iranian politicians have good bonds with each other," Saricaoglu said.
Trade Policies
"We are displeased with some of Turkey's existing trade policies ... We want bilateral trade ties to pick up significantly," Saricaoglu said.
"Existing obstacles regarding international transportation should be removed and tax exemptions should be set for merchants of the two countries, otherwise Iranian consumers will have to pay higher prices for Turkish products because of high taxes," Saricaoglu added.
"Before 2002, every year less than one billion dollars of foreign investments entered Turkey. But, after that domestic and foreign investments were almost equal to each other. Now, some $25 billion of foreign investments enter the country per annum, which in addition to ensuring economic growth of the country has reduced unemployment rate," he noted.
The Turkish official said construction business has been booming in his country in the past couple of years and Iran can cooperate with Turkey in this sector.
Earlier Iranian President Mahmoud Ahmadinejad has expressed the country's firm determination to increase the value of annual trade ties with Turkey to $30 billion, Press TV reported.
"We are determined to immediately reach the value of our annual trade ties with Turkey to $30 billion through the expansion of all-out cooperation," said the Iranian president in a joint press conference with his Turkish counterpart Abdullah Gul in the Iranian capital city of Tehran on Monday.
He added that the value of Iran's trade ties with Turkey surpassed $10 billion last year and noted that the two countries have the capabilities to upgrade their trade to $30 billion.
President Ahmadinejad emphasized that a joint venture between Tehran and Ankara in various fields of electricity and energy would be added to the figure.