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Iran's free zones to expand transit cooperation

Business Materials 11 July 2019 09:13 (UTC +04:00)

Tehran, Iran, July 11

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Iran seeks to utilize its free economic zones in the International North–South Transport Corridor by forming ties with other international economic zones, Vahid Talebpour, Deputy of Economy and Investment of Anzali Free Zone Organization told Trend.

He discussed the importance of strategic union of Iran's free zones with other free zones around the globe.

"Today there is a new model of free zones in the world that is defined as 'agreement free zones'. That means some countries or zones will sign for trade that includes exemptions and customs regulations that improves trade activities. In fact, the new definition of free zones is shaped in form of agreements like that agreement of Iran's accession into Eurasian Economic Union," he added.

"If this cooperation model expands, new definition of cooperation will be formed in the shape of cooperation councils or strategic unions between Iran's free zones and other neighboring countries. We would witness more success in development of free zones in international scene, that would develop exports and provide domestic needs," he explained.

"There has been agreement signed recently between Chabahar Free Zone and Lotus Special Economic Zone (Astarakhan, Russia), to revive and improve the International North–South Transport Corridor," Talebpour said.

He added that considering the role of Anzali Free Zone, a joint agreement was signed by Iran, India and Russia that included cooperation with Aktau Special Economic Zone at Kazakhstan to develop ties in the region.

"Based on the agreement signed by Iran, Russia and India, trading goods will be transferred via International North–South Transport Corridor and the major part of cargo transit from India to South East Asian countries such as Japan and South Korea will be transferred via the Suez canal to Europe or north east Europe instead of Bab-el-Mandeb that is a longer route and also less secured. Meanwhile, Chabahar or Bandar Abbas ports or other southern Iranian ports can fill the void and transfer goods via rail or roads to northern ports and then to Russia and other the Commonwealth of Independent States (CIS) states," he said.

"South East Asia countries, such as China , Japan, India, Taiwan and Indonesia have high exports volume and GDP while their exports would reach Europe after passing Bab-el-Mandeb and Suez Canal but by establishing the International North and South Corridor it would increase the amount of jobs, strengthen financial circulation and foreign currency revenues for Iran, " he added.

"The International North–South Transport Corridor should take some of Suez Canal duties and be its rival, to implement this we require to complete infrastructures specially the south to north railway route and should expand ports to harbor more big ships," he noted.

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