Azernews.Az

By Aynur Jafarova

Iran and Azerbaijan are developing cooperation in trade field and the two countries’ common land and sea borders have provided them with favorable conditions for further expansion of such cooperation, Head of the Iranian Presidential Administration Mohammad Nahavandian said in Baku on November 13.

He told Trend Agency that the two countries should explore and use this potential.

Nahavandian went on adding that the participation of the two countries’ presidents at an Azerbaijan-Iran business forum, held in Baku, indicates the forum’s importance. The forum
is an opportunity to expand cooperation between the busioness circles of the two countries.

Nahavandian also noted simplification of trade procedures plays an important role in the development of cooperation between the two countries.

“Iran and Azerbaijan need to provide mutual benefits in export and import operations, on customs tariffs and in cargo transportations. The banks in both countries need to closely cooperate for trade facilitation,” Nahavandian stressed.

The Head of the Presidential Administration also said Iran intends to benefit from Azerbaijan’s territory as a transit route for the export and import operations with Europe.

Touching upon the Qazvin-Rasht-Astara (Iran) - Astara (Azerbaijan) railway, he said “this railway will run through Azerbaijan’s territory and will be extended to Europe.”

“Taking into account that the construction of the railway is important from the economic point of view, several proposals were put forward for financing this project,” he added.

Nahavandian said Iran regards this railway as one of its strategic projects which will be important for the development of relations between Iran and Europe.

“Once the Qazvin-Rasht-Astara (Iran) - Astara (Azerbaijan) railway is commissioned, Azerbaijan’s transit opportunities within the North-South and West-East transport corridors will increase,” he added.

Iran, Azerbaijan can increase trade turnover by 10 times

Iranian Minister of Economic Affairs and Finance Ali Tayyebnia told Trend Agency that the trade turnover between Iran and Azerbaijan stands at about $500 million, however, the two countries have great opportunities to increase this figure by ten times.

The minister said although the political and cultural relations between Azerbaijan and Iran are developing, the relations in the economic field are not satisfactory.

Iran and Azerbaijan have had diplomatic relations since 1918. Iran recognized Azerbaijan's independence in 1991, and diplomatic relations between the two countries were established in 1992.

Recently, the relations between Azerbaijan and Iran, two neighboring countries with a long history of bilateral ties and cooperation, have risen to a higher level.

Tehran has in recent years focused seriously on development of ties with neighboring countries, including Azerbaijan which enjoys various commonalties with Iran in religious, historical and cultural fields.

The trade turnover between Azerbaijan and Iran stood at $144.045 million in January-September 2014, according to the State Customs Committee (SCC) of Azerbaijan.

In the past nine months, goods worth $115.6 million were imported to Azerbaijan, and the goods exported by the country amounted to $28.45 million.