Iran’s Non-Oil Exports Witness Threefold Increase to Latin American Markets

Deputy Head of Iran’s Trade Promotion Organization Babak Afqahi stated that Iran’s non-oil exports had increased by threefold to the South American region in the last four years. He said government’s persistent efforts in recent times to boost their presence in the region had paid off quite well.

The bilateral trade agreements with Venezuela and Uruguay in particular have benefitted Iran to augment their growth in the region at a faster pace. MOUs on preferential trade tariffs with Cuba and Venezuela, holding of several trade shows, and constant interactions with the trade delegations are also regarded as other factors which allowed Iran in establishing a better trade relationship with these countries.

Afqahi stated that Iran exported $179mn worth of non-oil merchandise to South America in 2005 and the same in March 2009 stood at $577mn to record a growth of 3.2 times as compared to four years ago. According to Iran's Customs Administration (IRICA), Iran's annual overall non-oil exports reached $15.2bn during 2007-08 fiscal. Though the percentage share of non-oil exports of the country to the Americas is miniscule, it is showing steady growth in the recent years.

A huge chunk of Iran’s non-oil merchandise is exported to the Asia & Oceania region, and it is estimated about 83.3 percent. Among them the UAE, Iraq and China take away the larger country-wise pie share with 14.2 percent, 10.5 percent and 8.1 percent respectively. However, the Iran’s non-oil export share to the South American region is just 1.5 percent as of March 2008. The major export commodities by Iran to the Americas are identified as pistachio and dried nuts, carpets, handicrafts, tractors and other agricultural machinery, cars and spare parts, construction material, and home appliances.

By Jose Roy