Armenia exports commodities worth $34m to Iran in 8 months

 TEHRAN TIMES 
Iran – Dec 29 2023

TEHRAN – Iran has imported commodities valued at $34 million from Armenia during the first eight months of the current Iranian calendar year (March 21-November 21), the head of the Islamic Republic of Iran Customs Administration (IRICA) announced.

Mohammad Rezvani-Far said that Armenia registered the highest growth in export of goods to Iran, among the other neighboring countries, in the mentioned eight-month period. 

In late October, Iranian Transport and Urban Development Minister Mehrdad Bazrpash traveled to Armenia to meet the country’s senior officials and discuss ways of expanding trade and transit ties between the two countries.

Speaking to the press prior to the visit, Bazrpash emphasized Iran's readiness to export technical-engineering services to Armenia, announcing the plan of the two countries to strengthen the level of trade and transit, and remove cumbersome regulations in the way of trade development.

Regarding the objectives of his trip to Armenia, the official pointed out that the two countries have common borders with each other, which is an advantage for both, saying: “During this trip to Armenia, we have based negotiations with political and economic authorities on two axes.”

“The main focus of the negotiations with the Armenian authorities is the development of economic relations and the removal of redundant regulations that hinder the two countries' trade development. Also, the development of transit is another goal we are pursuing in this trip, because the development of transit is one of the main foundations of the development of economic relations,” he added.

Cooperation between the two countries regarding the issuance of licenses for Iranian airlines, the removal of road tolls, the promotion of cooperation in the framework of the International North-South Transit Corridor (INSTC) and the Persian Gulf-Black Sea Corridor, expanding rail transportation and using Iran's logistics and port capacities were also among the subjects for negotiations during Bazrpash’s visit to the neighboring country.

In a meeting Between Bazrpash and Armenia’s Minister of Territorial Administration and Infrastructures Gnel Sanosyan, the two sides negotiated and agreed on the presence of Iranian companies in the construction and transport projects, the construction of the second bridge at Nordouz terminal, and the holding of a trilateral transit meeting with Georgia.

The Iranian minister emphasized the presence of Iranian companies in the construction and transportation industries, and proposed the elimination of entry and exit tariffs between the two countries to facilitate traffic.

He also proposed the holding of a trilateral meeting between Iran, Georgia, and Armenia to facilitate traffic in the North-South corridor and welcomed the proposal for the construction of a second bridge on the Aras River at the Nordouz border to increase traffic between Iran and Armenia.

The Armenian minister, for his part, said, “We will use the capacity of Iranian companies to build and complete the North-South corridor, and a contract for the construction of a section of the route is ready to be signed with Iranian companies in the field of road construction.”

He welcomed the tripartite transit meeting with Georgia and said, “I will meet with the Georgian minister in the next three days and discuss the issue.”

The official considered the Armenia-Iran-India transit axis important.

Iran and Armenia have signed a memorandum of understanding (MOU) to cooperate in the fields of labor exchange, technical and professional training, as well as, welfare and empowerment of the disabled

The MOU, signed by Iranian Labor and Social Welfare Minister Solat Mortazavi and his Armenian counterpart Narek Mkrtchyan in Tehran in late October, also covers economic cooperation between the two countries in the fields of petrochemicals, road and construction materials, and medicine.

Speaking in the signing ceremony, Mortazavi said: “Iran is fully prepared to send labor to Armenia while establishing technical and vocational training centers in the country, and transferring experiences to empower the disabled and war victims.”

Pointing to the increase in the economic exchanges between the two countries, the Iranian official said: “Economic exchanges between Iran and Armenia have increased slightly and reached 700 million dollars, but we should aim for three billion dollars in trade between the two countries and plan to achieve this goal.”

“We are ready to develop trade and commerce with Armenia in order to achieve the three-billion-dollar [annual trade] goal. Our economic experts believe that in the first step, we can export strategic items and products that suit the Armenian market’s needs to the country,” he added.

Mkrtchyan for his part praised Iran’s interest in boosting trade ties with Armenia, saying: “In the few days that we have been in Iran, we established paths of cooperation more than expected, and this is a source of satisfaction.”

“I am sure that by signing this memorandum, we can move things forward and implement the MOU as soon as possible. I am sure that we will m

Also, the deputy head of the Islamic Republic of Iran Customs Administration met with his Armenian counterpart in Moscow in late October to discuss boosting cooperation in borders.

During the talks, which were held on the sidelines of the annual International Customs Forum, the two sides discussed measures to increase the acceptance of trucks importing and exporting commodities and to promote transit on the joint border crossings.

Exchanging information electronically and developing the area of customs in the borders were also among the topics agreed upon by the officials.

The two officials also exchanged views about the acceleration and facilitation of trade affairs between Tehran and Yerevan.

After the talks, the two sides also agreed to hold expert meetings continuously to pursue the implementation of agreements.

In early September, Fars News Agency reported citing ARMENPRESS that Armenia is seeking to export its goods through Iran to the Arab countries of the region and India, as the country is trying to also increase trade with the Islamic Republic.

“Armenia and Iran attach great importance to the prospect of carrying out shipments through the Persian Gulf-Black Sea logistic route, and the Armenian side is maximally seeking to support the implementation of this megaproject, attaching great importance to the use of its own territory. The option of exporting Armenian goods through Iranian territory to Arab countries and India is also under discussion, and in this context, the parties have decided to find solutions through joint efforts and simplify the procedures applied from both sides on that road,” Armenia’s commercial attaché to Iran Vardan Kostanyan told ARMENPRESS.

“We are now looking into the untapped potential and opportunities to utilize them in bilateral cooperation. On the other hand, our neighbor is still under sanctions, therefore while carrying out economic policy we are unconditionally taking into consideration this fact. Iran provides state support and protection to companies investing in its economy,” Kostanyan said, highlighting direct meetings between business representatives.

According to Kostanyan, both sides are seeking new opportunities to further develop trade. The two countries plan to increase bilateral trade to one billion dollars, and then to three billion dollars.

He further noted that Iran plans to open eight new free economic zones, bringing the number of its free zones to 15.

Armenia’s membership to the Eurasian Economic Union (EAEU) and its land border with Iran gives opportunities for establishing enterprises and carrying out broad joint projects, he said.

Iran and Armenia are working to significantly increase trade turnover. Last year bilateral trade stood at $714 million, while the data of this year’s first half shows a 13 percent increase, which in turn shows that the positive pace of dynamics is maintained.

On August 25, an exhibition showcasing the products offered by Iranian and Armenian companies in the fields of agriculture, manufacturing, and tourism opened in Yerevan with the purpose of boosting bilateral trade between the two countries.

Hojatollah Abdolmaleki, the secretary of Iran's Free Zones High Council and presidential advisor was personally leading a delegation to Armenia and attended the event.

Iran and Armenia signed an MOU at the end of the two countries’ 17th meeting of the Joint Economic Committee in Yerevan in May 2022.

The MOU, which covers cooperation in areas of transit, transportation, facilitation of exchange of goods, energy, development of environmental cooperation in Aras area and removal of pollution from border rivers, as well as medical tourism, was signed by Iranian Energy Minister Ali-Akbar Mehrabian and Armenian Deputy Prime Minister Mher Grigoryan, who are the chairmen of the two countries’ Joint Economic Committee.

In that meeting, which was attended by a large number of deputy ministers, senior officials, ambassadors, and members of parliament of the two countries, the main issues that play a key role in the development of relations between the two countries were discussed.

According to the officials, the purpose of holding the 17th meeting of the Iran-Armenia Joint Economic Committee was the real and tangible development of relations between the two countries.

Among the issues raised at the meeting were transit, transportation, facilitation of trade, and broader cooperation in the field of energy.

MA

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