Removal of output barriers, int’l sanctions spawns constructive competition: Official
The secretary-general of Iran’s Home Appliances Manufacturers Association said the removal of production barriers and international sanctions leads to constructive and equal competition between domestic and foreign products.
“If sanctions are lifted and supportive policies are implemented to remove obstacles, additional costs will certainly be removed from production, and competition will become meaningful,” Omid Fazelinia was quoted as saying by IRNA.
Fazelinia termed the issue of smuggled goods as detrimental to the Iranian economy and an impediment to the sound rivalry between domestic and foreign products.
“Now that we are under sanctions and economic pressures, although the entry points for similar imported goods were closed, we witnessed the entry of smuggled goods that were offered in the market without equal competition with domestic production,” he said.
“Smuggled goods are sold in the market at a lower price than Iranian goods without paying customs duties, tariffs, taxes, and current production costs,” he added. “This competition, because it is not on an equal footing, is detrimental to production and the country’s economy. However, with the lifting of sanctions, the import of goods will take place under equal conditions and with the payment of legal costs. No one is against competition under equal conditions.”
Pointing to the woes faced by manufacturers in growing production costs, Fazelinia said, “Now, with the imbalance in energy, industrial sector investment in electricity, lack of working capital, currency fluctuations, delays in currency allocation, lack of export markets, etc., production costs have increased.”
The secretary-general of Iran’s Home Appliances Manufacturers Association emphasized that the lifting of sanctions would lead to foreign investment in the country.
“With the development and strengthening of international relations and the existence of domestic capacities, we can benefit from foreign investment and the transfer of technologies in our country,” Fazelinia said.
“Iran’s presence in international markets and exhibitions can create conditions for introducing products and utilizing the knowledge of other countries, and provide the groundwork for improving the quantitative and qualitative aspects of production.”