Iran’s non-oil goods can conquer part of European market

Iran’s non-oil goods can conquer part of European market

Baku, Azerbaijan, Oct. 12

By Azer Ahmadbayli – Trend:

Last Iranian fiscal year (ended March 20, 2017), the country’s non-oil exports accounted for $43.93 billion, which made 88 % from annual target of $50 billion, according to data from Iran’s Trade Promotion Organization (TPOI).

The same was observed in the first half of the current year (March 21-September 22), when total non-oil exports amounted to $20.5 billion, which made nearly 39% from the planned annual target of $53 billion.

So, it comes obvious that for the time being Iranian non-oil export is strongly limping.

Meanwhile, almost all of the non-oil export items are the derivatives of hydrocarbons (liquefied propane, liquefied butane, gas condensate, methanol, film grade polyethylene etc.), and exported mainly as raw materials. The only real non-oil export products found in the top 10 were iron ore and semi-processed iron and steel products.

The top 10 countries, where Iran exports about 70 percent of its non-oil goods are: China, Iraq, UAE, South Korea, India, Afghanistan, Turkey, Pakistan, Thailand and Taiwan.

Iran’s exports, let’s be honest, are of Europe’s economic interest in the first place due to hydrocarbons. The EU ranks 5th among Iran’s trade partners, mostly at the expense of importing hydrocarbons.

Iranian sources, based on latest data from Eurostat, say that Iran’s exports to EU’s 28 nations exceeded €5 billion, from which €4.4 billion fall to petroleum, petroleum products and related products, during the first half of 2017. Only €600 million fell to manufactured goods and agricultural products.

Does the one-sided export reality suit Iran? Probably not. Iran most likely is able to offer a range of high quality goods that might be attractive to European customers.

The “Resistance Economy” concept put forward by Supreme Leader of Iran Ayatollah Khamenei is still relevant due to high potential of re-imposition of sanctions by the US administration, but at the same time it’s vital to explore every avenue for non-oil export development.

Today, it is hard for Iran to find a free market niche in Europe and compete with such exporters of consumer goods as China or Turkey. Nevertheless, in addition to well-exported superior goods like caviar, hand-made carpets, crocus and pistachio, Iran has some other options in its product portfolio that can be put into commercial production for further export (given their acceptable price).

It is worthy to mention famous Iranian rice, dried fruits, jewelry, and natural stones. Some of the products are being exported to several European countries (travertine, for instance) but Iran is able to do much more in this regard.

Iran’s non-oil export approach has at least three serious shortcomings that have to be improved. First of all, instead of making a fast buck through selling raw materials, Iran could get its labor force, including those unemployed, involved into processing and finishing, by opening new processing enterprises. Second, Iranian high quality goods should have presentable packaging, European style. The third is lack of national brand.

Formation of supply chains for domestic products is one of the key conditions for non-oil export growth.

Take jewelry, for example.

The Islamic Republic is among the 10 major mineral-rich countries. It possesses 7 percent of the world’s total mineral deposits with about 68 kinds of commercially valued minerals. The volume of Iran’s minerals is estimated at 57 billion tons.

However, great bulk of precious and semiprecious stones and precious metals does not reach processing stage to turn into a well-packed dainty piece of jewelry - necklaces, rings, or bracelets – but is sold as a primary product.

Having cheap but skillful labor could help Iran conquer a part of the EU market.

By the way, figure of Faravahar symbolizing good thoughts, good words, and good deeds could probably be the best option to become a national brand mark for “Made in Iran” goods.

Armenian troops' military equipment, ammunition destroyed (VİDEO) (VİDEO)
Armenian troops' military equipment, ammunition destroyed (VİDEO) (VİDEO)
Ethnic Russian soldier dies in battle to liberate Azerbaijani lands from Armenian occupation
Ethnic Russian soldier dies in battle to liberate Azerbaijani lands from Armenian occupation
Commanders of Armenian armed forces hold meetings at kindergarden (PHOTO)
Commanders of Armenian armed forces hold meetings at kindergarden (PHOTO)
Loading Bars
Ankara extends Oruç Reis' exploration work in East Med until Nov. 4
Gubadli city freed from occupation - President Ilham Aliyev
Bulgarian PM Borissov tests positive for coronavirus
Armenian troops' military equipment, ammunition destroyed (VİDEO) (VİDEO)
Operational meeting was held under leadership of President, Commander-in-Chief Ilham Aliyev at Central Command Post of Ministry of Defense (PHOTO)
Ethnic Russian soldier dies in battle to liberate Azerbaijani lands from Armenian occupation
Commanders of Armenian armed forces hold meetings at kindergarden (PHOTO)
Azerbaijani army destroying Armenian armed forces on ground and in air - Anar Eyvazov
Azerbaijani army neutralizes high-ranking Armenian soldier
Armenian armed forces forced to retreat, suffering losses (VIDEO)
Footage from Azerbaijani Jabrayil and Zangilan regions liberated from occupation unveiled (VIDEO)
Armenian terrorist killed in Nagorno-Karabakh
Iran’s NICICO enhances its sales value
Weapon emplacements of Armenian Armed Forces destroyed, says Defense Ministry of Azerbaijan (VIDEO)
Tesla recalls 48,442 vehicles in China
Azerbaijani NGOs apply to relevant int'l structures regarding Armenia's involvement of children in military operations
Islamabad condemns killing of Azerbaijani civilians by Armenian Armed Forces (PHOTO/VIDEO)
Armenia admits loss of 11 more servicemen
Israeli cabinet approves Bahrain normalization accord
Iran boosts pickup manufacturing
Azerbaijan confirms 228 more COVID-19 recoveries
Liberation of Azerbaijani lands from occupation - gratifying – Iranian General
Canadian Azerbaijanis protest against Armenian attacks on Ganja (PHOTOS)
US too knows Armenia is terrorist state, MP
Military uniform price in Armenia increase
Russia’s coronavirus case tally exceeds 1.5 mln
Azerbaijani army destroying military equipment, in background of which Pashinyan took selfie (PHOTO)
554 streets disinfected in Baku (PHOTOS)
Footage about Armenia's missile attack on Ganja prepared (VIDEO)
Funeral service for 13-year-old Arthur, who died due to Armenian terror, being held in church in Ganja (PHOTOS)
Iran assigns lands to develop Pardis Technology Park
Will Iran export water?
Iran to increase in detergents and sanitizers price
Iran reveals its COVID-19 data for October 25
US Azerbaijanis hold protest in San Francisco against Armenian terror (PHOTOS)
Azerbaijani army heroically fighting for liberation of native lands from Armenian occupation (VIDEO)
Names of foreign mercenaries fighting in Karabakh within Armenian army revealed
Armenia must be held accountable for using children in battles, Azerbaijani expert
Azerbaijan announces recent statistics on COVID-19 cases across country
Armenian doctor who issued fake COVID-19 certificates to evade conscription arrested
Iran’s CBI announces volume of funds allocated for imports of essential products
Assistant to Azerbaijani president gives interview to leading Egyptian newspaper Al Ahram
Footage from Azerbaijani Gubadli region liberated from occupation unveiled (VIDEO)
Armenian military attacks against Azerbaijan along bordering regions - acts of aggression as enshrined in UN Charter, says Azerbaijani top official
Armenian Armed Forces shelling Azerbaijani Aghdam, Tartar and Agjabedi regions - MoD
Azerbaijani president's aide comments on French delegation's visit to Armenia
Volume of loans attracted for purchase of agricultural machinery in Iran revealed
Azerbaijan Army uses precision weapons against Armenian Armed Forces (VIDEO)
Iranian gov't to impose strict limitations to fight COVID-19
Production of home appliances in Iran increases
Export of agricultural products from Iran's Kurdistan region increases
Georgia reports 1 928 new coronavirus cases, 604 recoveries
President Ilham Aliyev gave interview to US Fox News TV channel (PHOTO)
Iran strongly condemns disrespect for Prophet of Islam in France
Iran unveils amount of loans issued to services sector
Bahar Azadi gold coin price falling in Iran
Statement made following investigation of Armenia's shelling of civilians in Azerbaijan
Azerbaijan close to military victory in Nagorno-Karabakh conflict - Russian analyst
Armenia's hopes that Russia to help it fight against Azerbaijan doomed to fail - expert
New refrigeration unit commissioned in Georgia
U.S. Vice President Pence's chief of staff tests positive for COVID-19
Azerbaijan forces Armenian troops to retreat in Gubadli direction - MoD
Significant amount of Armenian Armed Forces’ manpower, equipment destroyed - MoD
Azerbaijani troops advance new positions in Khojavend, Gubadli, Lachin directions of front
Over 150 new COVID-19 cases reported in Kazakhstan
Volume of loans issued to trade sector in Iran disclosed
WHO reports record increase in confirmed COVID-19 cases of over 465,000 in 24 hours
Samsung chief Lee dies
5.4-magnitude quake hits 74 km off Kawalu, Indonesia
Turkey reports 2,091 COVID-19 patients
Yemen's Houthis targeted two airports and a base in Saudi Arabia
Brazil reports another 432 COVID-19 deaths
Moscow's death toll from confirmed COVID-19 cases rises by 68
Afghan forces kill senior al Qaeda leader al-Masri who was on FBI most wanted list
UK records another 23,012 coronavirus cases with 174 deaths
Helpless on battlefield Armenia spreads false, provocative information - Azerbaijani MoD
Hikmet Hajiyev: Using children under 15 as soldiers is a war crime
8 killed, 4 injured in road accident in Pakistan's Punjab province
Necessary conditions will be created to extradite Armenian prisoners of war and civilians to third countries - MoD
Armenian army's combat equipment destroyed (VIDEO)
Azerbaijan's Defense Ministry calls on civilians in occupied territories to stay away from military facilities
Ministry of Defense: Armenian Armed Forces resort to provocations to prevent operations of Azerbaijani army
Iran declares amount of loans issued to housing & construction sector
Armenia continues to use underage children in military hostilities (VIDEO)
Photo of another missile launched by Armenia against Azerbaijan unveiled (PHOTO)
President Ilham Aliyev on political objectives of Armenian military attack on Azerbaijan
In center of Baku, there is Armenian church, but mosques on occupied territories were destroyed - President Aliyev
With Georgia our relations are excellent, says Azerbaijani president
Armenian government should not try to frighten its population with Turkey - President Aliyev
And after war with Armenia stops, political settlement enforced, role of Turkey will be very important, very positive - President Aliyev
Wounds of war must be healed by political wisdom, by political will - President Aliyev
Armenian government should understand that they are not now in position to dictate - President Aliyev
Best way for future of Karabakh - to live in peace in harmony, try to become good neighbors again, says President Aliyev
Unlike Armenia, from Russia we buy weapons, we pay for them, says Azerbaijani president
Turkey is not involved in the conflict at all - Azerbaijani president
If Armenia didn’t violate ceasefire today clashes would have stopped - President Aliyev
We cleaned completely the Azerbaijani-Iranian border from Armenian occupants, and there will be no more inconvenience for our brothers across river of Araz in Iran - President Aliyev
If Armenia do not stop, we will go until end to liberate all occupied territories - Azerbaijani president
Azerbaijan became already regional hub for not only for energy, but also for transportation - President Aliyev
Armenia - occupier, obliged to liberate territories of Azerbaijan - Lebanese political scientist
All news