Iranian Exports to Ecuador Soar

According to the Trade Promotion Organization (TPO) of Iran, the country’s non-oil exports to Ecuador have witnessed remarkable growth during the past four years; from less than $1mn in 2005 they have surged to $223mn during last year. The Deputy Director of TPO, Babak Afqahi stated the trade surplus was hugely in favour of Iran in the bilateral trade with Ecuador.

In Afqahi’s opinion, the two way trade got a boost notably through the co-operation of the private sectors of both countries. In May this year, Afqahi had stated that Iran’s non-oil exports had increased by threefold to the South American region in the last four years from $179mn in March 2006 to $577mn in this year of the same month.

A huge chunk of Iran’s non-oil merchandise is exported to the Asia & Oceania region, and it is estimated about 83.3 percent. Though, the Iran’s non-oil export share to the South American region is just 1.5 percent as of March 2008, it is showing significant growth through the concerted effort by leftist regimes including Venezuela, Cuba, Nicaragua, and Ecuador.

Ever since Rafael Correa assumed office as the president of Ecuador in 2007, bilateral ties between Ecuador and Iran saw great improvements politically, and also in terms of economic co-operation. Last year, both countries have opened trade offices in their respective capitals, Tehran of Iran and Quito of Ecuador, to further the cause of economic co-operation in all fronts.

In recent times, Iran has constantly hiked its stakes on Ecuador through massive investment plans to increase its presence in the Ecuadorian markets. In March this year, Iranian Deputy Energy Minister Hamid Chitchian and President Rafael Correa had signed a series of deals including a $120mn one to build power stations and investments up to $40mn in small and medium businesses. Last year, the President of Iran, Mahmoud Ahmadinejad had sanctioned a loan of $280mn for an oil refinery of Ecuador.

By Jose Roy