Reasons for the decrease in Iran’s foreign trade

Reasons for the decrease in Iran’s foreign trade

Trade Group – Exceeding the value of exports over Iran’s imports, although one of the goals of the country’s foreign trade in recent years, but in the first three months of 1392 this phenomenon occurred following the decline in the value of Iran’s foreign trade; This is a matter of concern from the point of view of experts and officials.

Yesterday, the Deputy Director General of the Trade Development Organization warned about this issue again and suggested ways to increase Iran’s foreign trade. In the spring of this year, Iran exported 9 billion and 751 million dollars worth of goods to other countries and imported 9 billion and 395 million dollars worth of goods, which shows that exports exceeded imports. However, according to Kiwmarth Fathullah Kermanshahi, deputy director general of the Trade Development Organization, the decline in imports has led to a $ 3.4 billion drop in foreign trade due to the problem of foreign exchange allocation by the central bank. Kermanshahi emphasized: It has been our long-standing dream that non-oil exports have surpassed imports, but the negative point here is the reduction of the country’s foreign trade volume; Non-oil exports, including oil condensate, increased by 7.1 percent compared to the same period last year, and by 7 percent, excluding gas condensate, but imports decreased by 26 percent compared to the previous quarter, while in the two-month statistics This index has decreased by 33%.

The Deputy Director General of the Trade Development Organization told Fars News Agency: “The volume of foreign trade in developed countries is such that both the value of exports is higher than imports and the value of trade is high; For example, China, as the world’s first exporter and the world’s first economic power, has a trade volume of $ 4.1 trillion, of which $ 2,000 billion is imports and $ 2.1 trillion is exports.
Emphasizing that imports are not an undesirable phenomenon in themselves, he said: “What is wrong with our imports being $ 100 billion and our exports being $ 120 billion?” Kermanshahi said: “Last year, the country’s import volume was $ 53 billion and non-oil exports were $ 41 billion, meaning that our trade volume was $ 94 billion, which was $ 5.23 billion in the first quarter of last year, while this year Iran’s trade volume was in the quarter.” It was $ 2.19 billion, which is related to the import problem.

“Special trade conditions or cowardly sanctions have reduced Iran’s cross-border trade rank by five notches,” said the deputy director general of the Trade Development Organization. Iran was ranked 139th in world trade in 2012, down from 144 this year. Kermanshahi stated: The increase in export and import costs is one of the main factors that has changed the position of Iran’s cross-border trade in the World Bank ranking. According to him, special trade conditions have reduced Iran’s ranking in cross-border trade, and it is natural that in such circumstances, the time of trade and the resulting costs will also increase.
The official said that the country’s trade rating as one of the indicators of the business environment in special business conditions (sanctions) has declined. Transfer cycle (trade) leads, falls into the category of trade facilitation.

Cross-border trade Index of business environment

Starting a business, obtaining licenses, registering ownership, receiving credit, supporting shareholders, paying taxes, cross-border trade, exploitation of electricity, binding contracts and dissolution of activities ?? The business climate index is considered by the World Bank. In an interview with IRNA, Kermanshahi said about the axes studied in the cross-border trade index from the point of view of the World Bank: number of documents required for export, time spent for export, export cost, number of documents required for import, duration Expenditure on imports and import costs are among these.

Top and worst foreign trade countries

Deputy Director General of Trade Development from Singapore, Hong Kong, South Korea, Denmark, UAE, Finland, Estonia, Sweden and Panama as? Top country of cross-border trade of the year ???? He mentioned and said: the rank of these countries in the business index is 1,?, 8,?, ??, ??, ??, ?? And ?? Is. He said that the weakest countries in terms of cross-border trade index this year are Uzbekistan with ???, Tajikistan ???, Central Africa and Kazakhstan each ???, Congo ???, Chad ???, Iraq ???, Afghanistan ???, Burundi ??? And Niger ??? Has been announced.

Kermanshahi also compares the cross-border trade index of some neighboring countries in ???? And compare it with the year ???? Payment and said: the rankings of the UAE, Saudi Arabia, Oman, Bahrain, Qatar, Turkey, Pakistan, Armenia, Kuwait, Afghanistan and Iraq last year, respectively?, ??, ??, ??, ??, ??, ??, ???, ???, ??? And ??? have been.

He said: the rank of cross-border trade of all these countries except the UAE in ???? It has faced positive and negative changes so that Saudi Arabia, Oman, Bahrain, Qatar, Turkey, Pakistan, Armenia, Kuwait, Afghanistan and Iraq in the last year, respectively, ranked ??, ??, ??, ?? ، ?? ,, ??, ???, ??? ، ??? And ??? Had appropriated it.

Alignment improvement strategies

Kermanshahi stated: Trade is a cross-sectoral matter and if we want to improve Iran’s foreign trade ranking, all agencies involved in exports and imports must act in a way that reduces the cost, number of documents and time for exports and imports, if this happens Iran’s cross-border trade rating will improve.

According to him, launching and upgrading the electronic exchange system, upgrading the customs management system, upgrading and improving port operations, reducing trade documents, upgrading and improving inspection processes, creating and upgrading the single window business system and concluding cross-border cooperation agreements with countries to improve Iran’s cross-border trade index will help.

He also sought to stabilize the economy and remove existing currency restrictions in order to reduce trade costs, including the cost of exports and imports, review the documents required for exports and imports and standardize them based on international norms and eliminate unnecessary documents in order to reduce He considered the required documents effective in improving the balance of Iran’s cross-border trade.

He added: providing infrastructure for electronic exchange of commercial documents and the possibility of online processing of information to speed up export and import processes in order to reduce the time required for exports and imports, integration of existing laws and regulations to improve business environment indicators to increase Ensuring the implementation of these laws and preventing the enactment of cumbersome new laws is effective in promoting Iran’s trade position in the world.