Iran’s strategic location golden opportunity for SCO: Secretary-general
The Shanghai Cooperation Organization (SCO) was founded in 2001 with the aim of stepping up regional cooperation in security, economic, and political spheres. Iran has been in the loop as an observer since 2005. Its application for full membership was put forward in 2008 but ran into international sanctions and political considerations, which held up the process for years. With some obstacles out of the way and with the backing of member states — especially China and Russia — Iran was granted full membership at the Dushanbe summit in September 2021, and the official accession process wrapped up in July 2023. Full membership has opened the door to new opportunities for Iran to broaden its horizons in economic, trade, and security cooperation with SCO countries, including China, Russia, India, and Central Asian states. This membership enables Iran to play a more active role in regional projects such as the Belt and Road Initiative and draw on the organization’s capacities to fend off Western sanctions. Nevertheless, challenges such as political differences among members and the need for greater coordination stand in the way of Iran making the most of these opportunities. The current goal of the SCO is the “free flow of goods, capital, and services”. Nurlan Yermekbayev, secretary-general of the SCO, shed light on possible and ongoing areas of cooperation on the sidelines of the Tehran Dialogue Forum in an interview with IRNA. The full text of the interview follows:
Nurlan Yermekbayev
How do you assess the position of the Shanghai Cooperation Organization in the development of trade relations, especially over the past decade, and do you believe that this organization has managed to grow into an influential economic union on the global stage?
YERMEKBAYEV: We have now set a goal in the SCO to move towards the free flow of goods, capital, and services. This is our current objective, and we believe a lot of effort is being put into making trade easier among member states. This is one of our top priorities in trade and economic cooperation.
In this regard, I should mention Pakistan’s initiative to draw up an intergovernmental agreement to facilitate trade. Also, a database for economic priorities and online platforms for e-commerce among member states have been set up. Moreover, a special zone for trade and economic cooperation at the SCO China Center, based in Singapore, has been launched. Last year and this year, this center has rolled out fashion trade platforms twice to help exporters get the word out about their products in member state markets.
Given Iran’s full membership in the Shanghai Cooperation Organization, what capacities and opportunities exist for the Islamic Republic, especially when it comes to attracting foreign investment?
Iran became a full member of the organization two years ago, and even before that, as an observer, it had already come up with practical and useful initiatives. These include establishing an energy center, designing a system for electricity trade, setting up an institution for aviation security, and creating a platform for technology exchange in the energy sector. These proposals are currently under review by member states.
Iran, with its rich natural resources and strategic location along the North-South International Transport Corridor, is well-placed to emerge as a hub for trade, investment, energy cooperation, and transport. For instance, Iran can provide the shortest and fastest route to seaports for landlocked Central Asian countries. Our Iranian colleagues have now put forward proposals to offer such opportunities to Central Asian states, including access to ports on Iran’s coasts and even the creation of dedicated ports for these countries. These ideas are currently on the table.
On the other hand, Iran will benefit from SCO membership as the organization has regulations that pave the way for investment, trade, economic cooperation, and transport. For example, there is an agreement to create favorable conditions for road freight transport, which spells out routes, checkpoints, and permits to facilitate transport. There are also special institutions and regulations within the SCO to make investment and cooperation easier. Last year, an investors’ association was established, which, though still in its early stages and raising awareness, has already gotten off the ground.
What steps is the SCO currently taking to facilitate investment, and what role does Iran play in these ongoing efforts?
We are also putting together a package of measures to ease investment. Kazakhstan has proposed holding a meeting with port and logistics center managers, and recently, a database of economic priorities has been created to give investors more information. Membership in an organization like the SCO brings member states closer together. Regular official meetings between ministries, the business council, and business forums create more opportunities to attract investors, especially from SCO countries.
Given the recent escalation of the tariff war in the global trade and economic system, particularly since Donald Trump took office as president of the United States, what impact do you foresee for the future of trade, and does the SCO have the ability to capitalize on these circumstances to raise its profile and welcome new members?
About a month ago, we issued a statement in support of the multilateral trading system based on World Trade Organization (WTO) rules, with the WTO as the main coordinator, to keep supply chains steady and secure.
The article first appeared in
Persian on IRNA.