Commerce Ministry restoration essential for market regulation
The case for the reestablishment of the Ministry of Commerce in Iran has been reopened. The last time this case was closed by the Iranian Parliament was in November 2022, but this time it was raised at the request of the speaker of Parliament.
On Tuesday, Mohammad Baqer Qalibaf wrote to Iranian President Ebrahim Raeisi, requesting the submission of a bill based on which the establishment of a “Ministry of Commerce” would replace the the “Commerce Organization”.
Following the request, the cabinet on Wednesday approved the bill for the establishment of the Ministry of Commerce – a bill that will be sent to the Parliament in the near future. A decision that, from the point of view of experts, is a managerial decision in addition to being political.
Talking about the formation of the Ministry of Commerce, Mohammad Sadeq Mofatteh, an economic expert who previously served as deputy minister of industries, mines and trade, said, “First of all, I must emphasize that there should not be any doubt about the establishment of a Ministry of Commerce; under the current conditions of the country, the formation of the ministry is a necessity.”
“A decade ago, the integration of the ministries of industries and commerce was carried out based on a Japanese plan, as the East Asian country was successful and many countries followed the plan, but it is not appropriate for Iran now, as our country is under sanctions,” he said.
Mofatteh clarified, “At the time, there were challenges in the country regarding domestic trade, and that is why policymakers at the time decided to use the capabilities of guilds, unions and chambers of commerce in the management of domestic trade; therefore, with the division of work that took place, the problems of domestic trade were solved and there was no need for a domestic trade department in the Ministry of Commerce.”
Then, the focus of the Ministry of Commerce was foreign trade. Therefore, according to the Japanese plan that was successful in Japan, it was decided to merge the ministries of commerce and industry to form the Ministry of Industries, Mine and Trade.
He stated that after the illegal sanctions, the domestic and foreign trade conditions of the country changed significantly, adding, “Since domestic and foreign trade has gained double importance with the aim of regulating the market and the aim of policymakers regarding market regulation, it is necessary to restore the Ministry of Commerce. Therefore, I now agree with the establishment of the ministry.”
“The Ministry of Commerce should cover both domestic and foreign trade sectors, for the separation of the two would cause the reestablishment of the Ministry of Commerce to fail. Some members of Parliament suggest establishing a ministry of domestic commerce, but if this were implemented, it would be a big loss for the country.”
A political-managerial decision
Economist Mohsen Bahrami Arz-Aqdas believes that the decision of the formation of the ministry is correct, and it should have been taken much sooner.
He emphasized, “This is a political action because even though Rouhani’s government insisted on its formation, the Parliament at that time was against it. On the other hand, this is a management decision, because it will be managed better, especially in the current situation in which the supply of basic goods and regulating the market are imperative.”
In February, the government submitted a bill to Parliament for the establishment of a “Commerce Organization and market regulation”. In April, however, while opposing it, the lawmakers announced that a Ministry of Commerce should be established.
While economic experts believe that the problem in the market and prices is the absence of an authority, the Parliament’s opposition to the submitted bill has led to some criticism.