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National Exports Day: Iran says incentives on agenda as imports rise

Business Materials 22 October 2017 16:53 (UTC +04:00)
On Saturday Iran marked the National Exports Day while official reports indicate that over the first half of the current fiscal year (March-September)
National Exports Day: Iran says incentives on agenda as imports rise

Tehran, Iran, October 22

By Mehdi Sepahvand – Trend:

On Saturday Iran marked the National Exports Day while official reports indicate that over the first half of the current fiscal year (March-September), exports declined and imports surged.

Speaking during a ceremony to mark the day, Minister of Industries, Mine, and Trade Mohammad Shariatmadari expressed dissatisfaction over the country’s export figures.

“There is no national determination to boost exports,” the minister stated, bemoaning a gap between what Iranian producers and tradesmen have and what they can achieve in foreign markets.

Iran is able to export worth $180 billion nonoil products per year, Shariatmadari noted, stressing that Iran’s economic survival should only be sought in nonoil exports.

“Given the country’s capacities and capabilities, including educated young people, engineers, technicians, skilled labor force, abundant mineral reserves, unique geopolitical situation, vast sea borders and access to free waters, it is not far off the mark to say Iran’s share of world trade should stand at 1 percent per year at least.,” Shariatmadari said.

At present, Iran accounts for 0.34% (oil included) and 0.24% (exclusive of oil) of the world annual trade.

According to Shariatmadari, the value of 10 goods topping the list of Iran’s exports last year amounted to $23.8 billion and exports to Iran’s top 10 customers stand at $35.8 billion.

According to the Customs Administration, Iran’s nonoil foreign trade during the first half of the current Iranian year (started March 21) stood at $44.13 billion.

Nonoil exports during the period hit 58.63 million tons worth $20.54 billion, indicating a 3.2% decline year-on-year.

On the same day, Ali Salehabadi, the CEO of Iran Exports Development Bank, announced the bank’s newly devised export incentives.

Top exporters, Salehabadi said, will be given 0.5 percent discount on interest rates of facilities they receive.

Nevertheless, he noted, the bank will have special considerations in assessing top exporters’ qualifications to receive facilities.

Over the first half of the current fiscal year, Iran earned over $23 billion from crude oil sales, as the country shipped over 2.6 million barrels per day of crude oil and condensates on average.

Iran is not a member of World Trade Organization. As such, the country has been banking on free or preferential trade agreements with the countries it has strong economic trade ties with.

According to figures released by the Central Bank of Iran, the average value of goods exported from and imported to Iran stands at $341 and $1,308 respectively, which show the low value-added of Iranian products in comparison.

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