US unilateral sanctions on Iran over the past three years have left little impact on the country’s trade relations with neighboring countries, according to the head of Iran Export Confederation.
Because of their transit routes and their historical bonds with Iran, the neighboring countries have been less affected by sanctions and trade with them continues, Mohammad Lahouti was quoted as saying by IRNA on Tuesday.
“We have not had enough of our high trade capacity with neighboring countries,” Lahouti said, adding that with the removal of sanctions and the revival of a 2015 Iran nuclear deal (JCPOA), Iran can further boost trade with neighboring countries.
Lahouti, also head of Trade Facilitation and Export Development Commission of Iran Chamber of Commerce, Industries, Mine and Agriculture (ICCIMA), said that Iran’s policy is focused on expansion of trade with 15 neighboring countries and India and China as well.
He however noted that Iran has failed to reach its foreign trade goals.
Lahouti said that Iran has problem for receiving the money of its exports to Iraq and Afghanistan as there are no items for imports from these countries and there is also problem with banking transactions.
He said that during the first four months of the current Iranian calendar year (March 21-July 22), Iran has posted a 65% growth in exports and a 32% increase in imports compared to last year’s corresponding period.
The growth in Iran’s foreign trade was partly due to the closure of borders following the outbreak of the coronavirus disease last year, Lahouti said, but added that the figures also show growth in comparison to those of two years ago.
He noted that the continuation of the country's export and import process in the coming months would depend on the decisions of the new government.
Lahouti said that Turkey replaced India as one of the top five destinations for Iranian products over the four-month period, with Germany and Switzerland joining five main importers to the Iranian market.
He also said that the UAE has replaced China as the first top importer to Iran within the period under review.
As the UAE is not a producing country, the commodities coming from this country have been re-exported, Lahouti said.