Page 26 - IRANRptNov20

Iran launches Persian rug export terminal
Iran and Turkey agree to expand trade and banking cooperation
Iran’s exports to EEU up 17% y/y since start of PTA
official told IRNA that gas exports to Iraq had peaked at 32mn cu m/d.
Iran has launched a rug export centre in the western city of Zanjan. The move was made as part of a plan to boost exports by exploiting the weakening of the Iranian rial which has continued to devalue amid the country’s economic difficulties, ILNA reported on October 6.​ It fell to more than 300,000 to the dollar for the first time four days ago.
In the 2018-19 Persian calendar year, Iran exported carpets and rugs with a value of around $400mn, according to Fars News Agency.
Farahnaz Rafi, a spokesman for the rug hub, said there was good potential to boost exports to regional markets and beyond. She also mentioned that the centre would help people remain in rural environments in Iran as they would be able to retain their local jobs.
"One of the advantages of the Iranian carpet industry, is the low base cost of production, and there are 31 carpet-related industries in the country,” she added.
She added that the terminal would be fully operational within six months.
A virtual exhibition will be held in the coming months to boost the exposure of Persian rugs.
Iran and Turkey have agreed to expand trade and banking cooperation, the chief of staff of Iranian President Hassan Roughani said on September 9.
The neighbouring countries—Turkey with a GDP of around $770bn and population of 83mn and Iran with a GDP of $460bn and a population roughly the same size as that of Turkey—signed "very good" business cooperation documents and needed to "develop their relations in the banking sector as soon as possible," Mahmoud Vaezi was reported as saying by Xinhua.
He spoke after the sixth meeting of the Turkey-Iran High-Level Cooperation Council.
"It was decided that the two countries give priority to purchasing each other's domestic products. It was also decided that Iran and Turkey talk about bartering goods," Vaezi noted.
"We discussed the formation of a joint committee to support Iranian and Turkish companies and mutual investments. We weighed in on rail and road transportation and transit," Vaezi added, also saying that "we reached good agreements on cooperation at borders as well as increasing the number of trucks" permitted to cross the borders.
The meeting also reviewed exports of Iran's natural gas and petrochemical products to Turkey, Vaezi said.
I​ran’s exports to the Moscow-led Eurasian Economic Union (EEU)—grouping Russia, Belarus, Kazakhstan, Kyrgyzstan and
Armenia—have increased 17% y/y since the Islamic Republic and the bloc launched a temporary two-year preferential trade agreement (PTA) on October 21 last year, IFP reported on August 5.
Hamid Zadboom, Iranian deputy minister of industry, mines and trade said that Iran’s exports to the former Soviet countries stood at a value of $681mn, with the near one-fifth gain achieved despite the onset of the coronavirus (COVID-19) pandemic early this year. Bilateral trade between Iran and the EEU member states had reached $2.4bn, up 14% y/y, since the PTA kicked off, Zadboom added.
Tehran has hopes of expanding its relations with the EEU after the two-year PTA expires.
Iran had a $459bn economy in 2019 according to the International Monetary
26​ IRAN Country Report November 2020 www.intellinews.com