Page 23 - IRANRptNov19

5.1.2 ​Import/export dynamics
Keen interest in Chabahar port as Uzbekistan and Kyrgyzstan discuss building trade with Iran
Dollar squeezed out of Iran’s trade with Russia and seen less and less in
Uzbekistan and Iran have agreed in principle that the sole Iranian oceanic port, Chabahar on the Gulf of Oman, can be used as a hub for Uzbek exports. The agreement was made on the sidelines of the Shanghai Cooperation Organisation (SCO) summit at the weekend, Fars News reported.
Tashkent is currently hosting the latest summit of the group, formed in 2001. The SCO is an intergovernmental organisation which boasts China, Russia, Uzbekistan, Tajikistan, Kyrgyzstan and Kazakhstan as longstanding members. Iran currently has observer status in the group.
After a meeting, Iranian Vice President Es’haq Jahangiri and Uzbek Prime Minister Abdulla Aripov announced that their two countries would now push ahead with plans to boost exports of Uzbek goods via rail and road transit routes running to the Iranian coastline.
Other areas of agreement were aimed at boosting all-out bilateral economic relations, including easing restrictions for Iranian business people visiting Uzbekistan.
“Iran is interested in importing some goods that it needs from Uzbekistan. We can also use our national currency for bilateral trade to increase the current trade volume of $300 million,” said Jahangiri.
Jahangiri added that if Uzbekistan were to ease visa issues for Iranians, trade between the two countries would be bolstered significantly. Currently, both countries have tight visa restrictions that apply to citizens of each other despite the two nations’ proximity.
The Iranian VP added that direct flights between Tashkent and Tehran are a must and further transport integration was certainly needed to strengthen trade.
After a separate meeting, held with Kyrgyz Prime Minister Mukhammedkalyi Abylgaziev, Jahangiri said that agreements between the two countries over the development of trade, connectivity and food exports to Iran were discussed.
Kyrgyzstan is now a key regional exporter of mutton and lamb to Iran. US sanctions continue to limit imports from traditional exporters including New Zealand, Brazil and Australia.
Iran has also pitched itself as a key export hub with access to the oceans to Kyrgyzstan.
“I want the Iranian minister of roads and urban development, who is in charge of the joint commission of the two countries, to tap into all potential to improve relations,” Jahangiri said, as cited by IFP.
Trade between Iran and the Kyrgyz Republic stands at around $20mn a year, according to official Kyrgyz data. However, there is some doubt that the new trade in meat has yet been included in the figure.
In November 2018, Iran opened a trading house in the Kyrgyz capital of Bishkek. It was unveiled by Iran’s deputy minister for management development and resources, Alireza Daliri, the Iranian ambassador to Bishkek, Ali Najafi, and the chair of the Kyrgyz Chamber of Commerce and Industry, Marat Sharhekeev.
All of Iran’s trade with Russia takes place in national currencies and 30-40% of trade with Turkey is also in national currencies, with the rest denominated in euros, the governor of the Central Bank of Iran (CBI) was cited as saying by Radio Farda on September 26.
23​ IRAN Country Report​ November 2019 www.intellinews.com