Iran, Turkey on track for $30b trade
Trade and economic relations between Iran and Turkey have picked up steam in recent years, maintaining a dynamic and upward trajectory despite regional and international challenges. Turkey, with its robust economy, access to European and Asian markets, and pivotal role in energy and goods transit, has emerged as a key trading partner for Iran. The abolition of visa requirements since 1964, geographic proximity, and joint membership in organizations such as ECO and OIC have further shored up these ties.
Despite international sanctions and regional rivalries, both nations have set their sights on boosting bilateral trade to $30 billion in the coming years, a target that underscores the vast potential for economic cooperation.
A review of trade trends reveals that since the 1970s — when trade volume between Iran and Turkey stood at $1.5 billion — figures climbed to $10 billion in the 2000s. In 2012, bilateral trade hit $12 billion, but after the United States pulled out of the JCPOA in 2018, trade slumped to as low as $5.5 billion in 2019.
Nevertheless, since 2022, trade between Iran and Turkey has bounced back, and by 2024, bilateral exchanges reached $8.1 billion.
Turkey’s exports to Iran have centered on industrial goods, machinery, household appliances, and food products, while its imports from Iran have consisted mainly of energy (natural gas and crude oil), petrochemicals, and basic metals. Thus, Iran is primarily seen as an exporter of raw materials (petrochemicals and metals), while Turkey is regarded as a supplier of industrial goods.
According to experts, Iran and Turkey, in addition to leveraging their shared borders and trade cooperation, stand to benefit from joint gas pipelines, exhibitions, and new contracts in energy and transit, all of which point to significant potential for expanding ties.
Within this context, both countries, through long-term agreements — most recently at the 29th Iran-Turkey Joint Economic Commission — have mapped out plans to ramp up trade to $30 billion annually. This goal is within reach, provided banking barriers are done away with, transport is streamlined, and local currencies are used in transactions.
In the short term (through the end of 2025), trade is expected to hover between $8–10 billion, with a focus on petrochemicals, machinery, and transit.
A key takeaway in Iran-Turkey relations is their mutual dependence: Iran needs Turkish machinery and textiles, while Turkey relies on Iranian gas and petrochemicals.
To date, Turkey has poured approximately $2.5 billion into Iran, including $800 million in textiles, $700 million in construction, and $600 million in energy. Iran, for its part, has invested around $600 million in Turkey’s transit and transportation projects.
All things considered, given the geopolitical standing of both nations and their shared economic interests, strengthening bilateral relations could go a long way toward ensuring regional stability, energy security, and sustainable economic growth in Western Asia. Achieving this will hinge on a shared commitment to clear up obstacles, build trust, and carry out joint action plans.
The article first appeared in Persian on Mehr news agency.