Which export product market is hot?
A member of the delegation of the Tehran Chamber of Commerce describes the most important trade capacities of Iran in the post-embargo period, referring to the obstacles that stood in the way of Iran’s trade during the embargo.
Hossein Salimi in response to the question that in the post-embargo period and with the implementation of Borjam, what Iranian products are booming?
“One of the issues that the embargo created for our exports was the export problems of petrochemicals,” he said. At the time, countries were afraid to buy from Iran because they feared sanctions. For this reason, sometimes our petrochemical products were not purchased directly, but through intermediaries or indirectly, to the detriment of the exporter. Exporters of these products received a lower percentage than when foreign companies bought directly from them.
He added: “In the post-embargo period, fortunately we can say that from the next two to three weeks, virtually all foreign companies can buy directly from Iran.” One of our most important exports is petrochemical products, which amounted to seven to eight billion dollars a year, but unfortunately, since the beginning of this year, our export trend has been declining. Anyway, with the implementation of Borjam, our exports will definitely go to the same 30 billion dollars. Europeans and other countries sell petrochemical products directly to buyers who need them. Such exports will cost us less. Because during the embargo period, money was given through exchange offices or other means at a cost that charged a fee, etc., the figures received by the exporter were less than the actual figures.
“We have currency problems,” he said of imports. The government is now preparing plans to play with tariffs in such a way that if high-quality goods are produced domestically, they will be allowed to enter at a higher tariff. They do not have any exchange currency, they have to import it in free currency. So domestic producers can compete with imported products, because it will be more expensive to import. Under those circumstances, if a manufacturer has a high quality product, it will be much easier to compete than when we were under sanctions and the problems of buying raw materials and all kinds of other problems that our industries faced.
Salimi also said that the same industries can more easily conduct banking operations by lifting sanctions. They also do not have to pay extra with a few hands to get the money. In the past, practically everyone paid for the money first, but now, through credit openings, the biggest service to raw material importers is that they can pay when the documents and goods arrive. At that time, they paid practically the entire amount in advance, after three or four months, they received the raw materials or intermediates needed by their factory. But now, if the credits are opened in a new way after the embargo, money will be paid when the goods arrive. This is very useful for importers of raw materials.
Referring to Iran’s capacity in the petrochemical sector, he said: “It is much easier for Iran to compete with petrochemicals than other products.” For example, in the field of steel, we can not compete with foreigners due to the higher cost price and the higher production costs here. For this reason, in the case of petrochemicals, we can very well export these products to foreign countries, but if it is direct and the problems of sanctions and the need for a few currencies are resolved, I think it is definitely in the interest of exporters and also in the interest of their competition. Will be with other countries.