Azernews.Az

By Aynur Karimova

Iran is keen on taking steps to improve trade with neighboring Azerbaijan in a bid to make up for the recent decline in trade turnover between the two countries, Mohammad Ali Najafi, the governor general of the Iranian border province of Guilan, stated on November 14.

He informed Trend that the governments of the two countries have constantly held meetings and have signed agreements to improve the situation.

"Since coming to power, the Rouhani administration has been seeking to build stronger ties with Baku," he noted.

"Iran has unilaterally waived visa requirements for Azerbaijanis since 2009 in a move to demonstrate that Tehran is looking forward to fostering closer relations with Baku. The Iranian government is also making attempts to operate customhouses round the clock at the border with Azerbaijan, so as to facilitate the smooth movement of passengers and goods between the two countries," he affirmed.

According to the Iranian official, opening a modern border market with Azerbaijan is on the agenda, and the Iranian cabinet has already passed a regulation that emphasizes on giving attention to border markets.

Meanwhile, Najafi expressed regret over the several obstacles hindering the increase in trade turnover between Azerbaijan and Iran. He believes that if these obstacles are overcome, it will greatly contribute to boosting mutual trade between the two countries.

"Heavy tariffs on Iranian goods have caused Iranians to export goods to Turkey and from there to Azerbaijan, rather than directly to Azerbaijan, which is an area that could witness improvements," he stated.

"Also, Iran has been unable to use the international systems for money transfers, which poses a problem, and is set to be solved soon after the sanctions are removed," he revealed.

Under international sanctions, Iran has been unable to transfer money using the SWIFT banking system. The country, however, is expected to be freed from sanctions in the coming months, following the signing of a comprehensive agreement in July.

Najafi believes that great cooperation opportunities exist for Iran and Azerbaijan in the tea industry.

"Iran has significant infrastructure in the tea and tea processing industries. We have also heard of some recent improvements in Azerbaijan’s Lankaran in the tea industry," he pointed out.

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

Currently, the two countries are focusing on expanding economic ties in various fields, including industry, agriculture, energy, alternative energy, and transportation.

During the first half of 2015, Iran's exports to Azerbaijan decreased by 55.36 percent to reach $42.52 million year-on-year. Azerbaijan's exports to Iran also decreased by 67.11 percent to $11.16 million during the same period.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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