Azernews.Az

By Amina Nazarli

An Iranian senior official has called for tripling the volume of trade turnover with Azerbaijan over the next year.

Iran’s deputy minister of industry, mine and trade Hossin Esfahbodi told Trend that the volume of trade turnover between the two countries currently stands at about $100 million but it must increase considerably.

Elaborating on existing trade capacities between the two countries, the deputy minister said that the current level of turnover is not satisfactory and it must surpass $300 million over the next year.

Esfahbodi made the remarks on the sidelines of the Iran Project 2016 expo held in Baku on September 19-21. Over 50 Iranian companies specializing in oil, gas, construction, pharmaceutical, car making and other industrial spheres showcased their capabilities during the three-day exhibition.

Saying that short distance between Iran and Azerbaijan creates a proper opportunity for traders from both countries, the deputy minister called for expansion of cooperation in both, oil and non-oil sectors.

After years of economic sanctions imposed by the West Iran expects a real economic rise.

Now, with sanctions gone on January 16, Iran is considered a hot investment destination and this potentially opens up attractive big opportunities for foreign investors and businesses looking for a new emerging economy. Isolated from the global economy for the past decade and with a population of 80 million, the country is a fertile ground for business.

However, it’s not an easy deal to enter the Iranian market, since the country said no longer interested in unidirectional importation of goods, but is looking for two-way trade.

Following the lifting of sanctions, Tehran has repeatedly expressed intention to improve trade with neighboring Azerbaijan in a bid to make up for the decline in trade turnover between the two countries.

The history of relations between Iran and Azerbaijan has a particular specificity, causing all stages of the development of bilateral relations. The present Iranian administration’s policy of improving international relations, Tehran’s pursuit of win-win situations, and a political will shared by Iran and Azerbaijan have improved the chances of growing economic ties between the two neighboring countries.

The volume of trade turnover between the two countries soared by 70 percent over the first seven months of the current year.

According to Azerbaijani officials, Iranian companies have already invested $2.6 billion in Azerbaijan’s economy. About $145 million of the total amount has gone to the non-oil sector. This is while some 450 companies with Iranian share operate in Azerbaijan.

Trade turnover between the two neighboring countries amounted to $122.08 million in January-August 2016, $30.66 million of which accounted for the export of Azerbaijani goods to Iran, according to the State Customs Committee of Azerbaijan.

Agriculture, banking sector, pharmaceutics, as well as cooperation in the international North-South transport corridor are the main areas that the two states are focused on.

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Amina Nazarli is AzerNews’ staff journalist, follow her on Twitter: @amina_nazarli

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