Iran’s economic diplomacy in full force
Iran’s current government has prioritized international negotiations to drive economic development and improve conditions. In the past two years, they have signed over 370 agreements, particularly in the economic sector, with nations worldwide. Upon assuming power in 2021, the government focused on invigorating the country’s economic diplomacy, with a crucial strategy being the expansion of commercial and economic relations. Previous shortcomings, such as neglecting neighboring and allied nations’ export potential and failing to explore market growth, were acknowledged as hindrances to progress in export development.
To address these issues, the Iranian government has formulated a comprehensive roadmap, aligning with the president’s electoral promises, aiming to double non-oil exports by 2025, targeting $75 billion in exports. The Ministry of Industry, Mines, and Trade attached great importance to signing the Free Trade Agreement with Eurasia and gaining official membership in the Shanghai Cooperation Agreement as measures to enhance the nation’s economy. The government delegation has taken multiple steps to achieve these objectives. They convened 23 joint economic commissions, both in Tehran and the target countries’ capitals, and dispatched 149 economic delegations abroad, while hosting 41 foreign economic delegations.
These negotiations resulted in over 370 signed documents, with a strong emphasis on the economic sector, strengthening ties with various countries. Notably, approximately 100 Iranian exporting companies were introduced to foreign representatives, facilitating business transactions on their behalf.
Through active engagement in international negotiations, Iran’s government has made significant strides towards economic development, fostering trade relations, and expanding export opportunities.
The Iranian Chamber of Commerce has established offices in select countries to facilitate economic consultations and connect Iranian entrepreneurs with international economic actors, with a focus on neighboring countries. Economic advisors and experts have been deployed to embassies’ economic departments to strengthen ties further. Efforts to activate and formalize Rimdan and Pishin marketplaces with Pakistan are underway, along with discussions for new border bazaars with Turkey. Memoranda of understanding have been signed with the Kurdistan Region of Iraq to reopen the Tilekoh border bazaar and revive the Yazdan bazaar with Afghanistan. These measures demonstrate the government’s commitment to enhancing economic cooperation.
To address sanctions and promote exports, the government has utilized business prospects and improved institutional capabilities in sectors such as Post Bank and the petrochemical industry. Strategic products and investment opportunities have been explored in various countries, leading to significant progress in fulfilling presidential commitments. In 1401, trade volume exceeded $100 billion, with 122.056 million tons of goods valued at $53.166 billion being traded in 2022. While the weight of goods traded decreased by approximately 15% compared to the previous year, the value increased by 9.7%. A positive trade balance of $19 billion was achieved across 84 countries.
In an effort to strengthen economic diplomacy, joint economic commissions with China and Iraq were established, setting the stage for improved exchanges and market access. The Iranian government prioritized expanding trade with neighboring countries, leading to the finalization of significant agreements and memoranda of understanding (MoUs). These included collaborations with insurance companies from neighboring countries, Russian companies RNRC and VSK INSURANCE HOUSE, as well as various governments, such as Russia, Turkmenistan, Uzbekistan, China, Thailand, Turkey, Cuba, Zimbabwe, Venezuela, Oman, Ghana, and Pakistan, in matters concerning customs affairs.
The current Iranian government has consistently prioritized enhancing trade relationships, particularly with neighboring nations, as a means to mitigate the impact of sanctions. They have diligently pursued their objectives outlined in a comprehensive plan during their two-year tenure. These efforts serve as a foundation for future endeavors and provide a clear vision for upcoming months, reflecting the government’s determination to bolster the country’s economy through increased international
engagement.