Iran’s TPO aims to implement new methods to lower foreign trade imbalance
Date
10/15/2024 4:11:09 AM
(MENAFN) The head of Iran's Trade Promotion Organization (TPO) has expressed concerns over the significant imbalance between the country's exports and imports, indicating that new measures are being implemented to address the issue. During a press conference held on Sunday, Mohammad-Ali Dehghan Dehnavi highlighted that in the first six months of the current Iranian calendar year (March 20 to September 21), imports exceeded exports by approximately USD7 billion. He further noted that the trade balance for the previous Iranian calendar year showed a negative figure of USD16.8 billion.
Dehghan Dehnavi mentioned that the TPO is currently in discussions with the government to revive the Export Development High Council, a move aimed at enhancing Iran's non-oil exports. He identified four key reasons contributing to the trade imbalance. Firstly, he pointed to a significant decrease in global prices, particularly in petrochemical products, which saw an average drop of 30 to 60 percent. Additionally, issues related to natural gas exports resulted in a USD5.3 billion decline in that sector.
The TPO head also criticized the ban on raw material exports, acknowledging the intent behind it but arguing against the current approach. He emphasized that while reducing raw material exports is essential, it is equally important to invest in producing higher value-added goods, which requires financial support. He suggested that export duties should be structured to incentivize exporters rather than deter them, citing the example of increased duties on decorative stones that led to a sharp decline in exports in that area.
Dehghan Dehnavi also pointed to excessive and unstable regulations as a significant hurdle in the export process, stating that the accumulation of these regulations has severely disrupted trade. He lamented that many exporters are dissatisfied and may choose not to export at all due to the complexities involved. Regarding the revival of the Export Development High Council, he announced that a meeting with First Vice President Mohammadreza Aref had concluded with plans for the council's first meeting to be held soon.
MENAFN15102024000045015839ID1108778975
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.