$4.5b in Iran's Non-Oil Trade Surplus With ECO States

EghtesadOnline: Iran recorded $4.57 billion in non-oil trade surplus with nine other members of Economic Cooperation Organization during the last fiscal year (ended March 20, 2019).

News ID: ۷۴۷۲۴۵

06 May 2019

Latest data released by the Islamic Republic of Iran Customs Administration show Iran traded 19.97 million tons of non-oil commodities worth $10.89 billion with ECO member states during the period to register a 26.31% and 14.58% decline in tonnage and value respectively compared with last year’s corresponding period.

Iran’s exports totaled 17.85 million tons worth $7.73 billion during the period, indicating a 0.27% and 0.13% decrease in tonnage and value respectively year-on-year.

Imports stood at 2.12 million tons worth $3.15 billion, down 0.19% and 0.17% in tonnage and value respectively YOY, according to Financial Tribune.

The Economic Cooperation Organization is a Eurasian political and economic intergovernmental organization founded in 1984 in Tehran by the leaders of Iran, Pakistan and Turkey. The three were later joined by Afghanistan, Azerbaijan, Turkmenistan, Kazakhstan, Uzbekistan, Tajikistan and Kyrgyzstan,

ECO is an ad hoc organization under the United Nations Charter pursuing the establishment of a single market for goods and services. Its secretariat and cultural department are located in Iran, its economic bureau is based in Turkey and its scientific bureau is in Pakistan.

ECO consists of predominantly Muslim-majority Central Asian states connected to the Mediterranean through Turkey, to the Persian Gulf via Iran and to the Arabian Sea via Pakistan.

Main Commodities, Trading Partners

Iran mainly exported liquefied natural gas, low-density oils, iron/steel bars, non-alloy zinc and bitumen to ECO member states.

In exchange, major commodities imported into Iran from ECO nations included semi- and wholly-milled rice, cooking bananas, tobacco and cotton.

In terms of trade value, Turkey topped the list among ECO countries with bilateral trade standing at 8.15 million tons worth $4.98 billion, down by 49.54% and 30.61% in tonnage and value respectively YOY.

Exports to Turkey amounted to 6.76 million tons worth $2.36 billion to register a 52.72% and 40.22% decline in tonnage and value respectively YOY.

Turkey was Iran’s second biggest export destination among the countries under review and sixth in the whole world. In return, it exported 1.39 million tons of commodities worth $2.61 billion to Iran, down by 24.96% and 18.79% in tonnage and value respectively YOY.

The country was the top exporter of goods to Iran among ECO states and third in the world after China and the UAE.

Major Iranian commodities exported to Turkey were liquefied natural gas, non-alloy zinc, aluminum, urea and bitumen.

Turkey mainly exported cooking bananas, tobacco and fiber to Iran.

Afghanistan was Iran’s second biggest trading partner among ECO nations during the 12 months, as two-way commercial exchanges stood at 5.68 million tons worth $2.93 billion to register a 4.4% decline in tonnage and 4.73% growth in value YOY.

Iran exported 5.67 million tons of goods worth $2.92 billion to Afghanistan, down by 4.18% in tonnage and up by 5.11% in value YOY.

Afghanistan was Iran’s top export destination among ECO states and fourth in the world during the period.

Iran’s exports to Afghanistan included low-density oils, iron/steel bars and floorings.

Iran imported 10,387 tons of commodities worth $10.93 million from Afghanistan, down 57.63% and 46.41% in tonnage and value respectively YOY, which were mainly sesame seeds, herbs used for perfume making and medical purposes, lead and camels.

Afghanistan was the eighth exporter of goods to Iran among ECO states and 73rd exporter to Iran in the world.

Pakistan was Iran’s third major trading partner among the countries under review.

Trade between Iran and Pakistan amounted to 3.1 million tons worth $1.57 billion, indicating a 23.19% and 20.23% increase in tonnage and value respectively YOY.

Iran’s exports reached 2.8 million tons worth $1.24 billion, up 30.1% and 35.77% in tonnage and value respectively YOY, while Pakistan’s exports to Iran were at 298,438 tons worth $330.23 million, down 17.83% and 16.06% in tonnage and value respectively YOY.

Pakistan was Iran’s third export destination as well as the second exporter of goods to Iran among ECO members. The country was Iran’s eighth export destination and 22nd exporter to Iran in the world.

Bitumen, gas, low-density oils, liquefied propane, pod vegetables and pistachios were Iran’s main goods exported to Pakistan, which mainly exported cows, semi- and wholly-milled rice, sesame seeds and cans.

Kazakhstan was the third biggest exporter to Iran, after Turkey and Pakistan, among ECO countries and 36th in the world, as Iran imported 297,075 tons worth $87.06 million from Kazakhstan during the 12-month period, up by 34.46% and 30.46% in tonnage and value respectively YOY.

Iran mainly imported barley, sheep carcasses and colza seeds from Kazakhstan.

Highest Trade Growths, Declines

Trade with Azerbaijan (at $431.44 million), Pakistan ($1.57 billion) and Uzbekistan ($187.94 million) saw the highest YOY growths of 22.25%, 20.23% and 16.58% respectively, while trade with Tajikistan (at $104.41 million), Turkey ($4.98 billion) and Kazakhstan ($218.47 million) witnessed the lowest declines of 54.82%, 30.61% and 7.28% respectively.

Iran’s exports to Uzbekistan (at $140.94 million), Pakistan ($1.24 billion) and Azerbaijan ($410.61 million) saw the highest growths of 40.84%, 35.77% and 26.06% respectively, while exports to Tajikistan (at $78.31 million), Turkey ($2.36 billion) and Kazakhstan ($131.4 million) witnessed the highest declines of 63.94%, 40.22% and 22.19% respectively.

Imports from Kyrgyzstan (at $11.37 million), Tajikistan ($26.1 million) and Kazakhstan ($87.06 million) saw the highest growths of 87.83%, 87.48% and 30.46% respectively while imports from Afghanistan (at $10.93 million), Turkmenistan ($9.29 million) and Azerbaijan ($20.82 million) witnessed the highest declines of 46.41%, 28.77% and 23.46% respectively.