Tehran Times
September 27, 2009

Turkey mulls establishing joint FTZs with Iran

Tehran Times Economic Desk

ANKARA ` Turkish Minister of Industry and Trade Nihat Ergun said that
Ankara is reviewing the establishment joint free trade and industrial
zones with Iran.

During Ergun’s visit to the city of Van in the eastern Turkey he noted
that establishing free industrial zones with Iran had been suggested
by Tehran last year which will be finalized this year, IRNA news
agency reported on Saturday.

He pointed out that Turkey’s legal system approves such deals, adding
that Iran’s cheap energy, gas and natural resources are advantages for
carrying out this agreement.

He said that Van and Igdir provinces in east and northeast Turkey were
suitable places to establish the zones.

Over the past few years, Turkey and Iran have increased their
financial cooperation gradually deepening their relationship through
growing trade and bilateral investment.

As Turkey’s energy needs have increased, Iran has actively sought new
markets for its most important export, providing an excellent base
with which to develop greater avenues of cooperation.

Iran has taken steps to make itself more attractive to foreign
investment including easing customs regulations in its East Azarbaijan
province. In July 2009, it was reported that thirty-eight firms
partially owned by Turks were active in and around the Iranian city of
Tabriz (capital of the East Azarbaijan province), two of which are
entirely Turk-owned.

Lower productions costs have played a significant role in the decision
of Turkish industrial firms to relocate to Iran.

According to a Turkish trade delegation from the country’s Van
province (bordering East Azarbaijan prov.), newly approved provincial
legislation will aid in the continuing expansion of economic ties.

Trade exchanges between the two countries hit $11 billion in 2008 and
efforts are being made to raise the figure to $20 billion

From: Emil Lazarian | Ararat NewsPress