Iran's Non-Oil Trade With G7 at $7.2b in Fiscal 2018-19

EghtesadOnline: Iran traded 4.84 million tons of non-oil commodities worth $7.24 billion with members of the Group of Seven during the last Iranian year (ended March 20, 2019) to register a 26.38% and 26.31% decline in tonnage and value respectively compared to the year before.

News ID: ۷۴۷۶۷۵

25 June 2019

Latest data released by the Islamic Republic of Iran Customs Administration show Iran’s exports totaled 1.11 million tons worth $907.18 million during the year, indicating a 40.78% and 39.28% fall in tonnage and value respectively year-on-year.

Imports stood at 3.73 million tons worth $6.33 billion, down 20.59% and 23.99% in tonnage and value respectively YOY.

As a result, Iran recorded $5.43 billion in non-oil trade deficit with G7 members, according to Financial Tribune.

The Group of Seven (G7) consists of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. These countries, with the seven largest IMF-described advanced economies in the world, represent 58% of the global net wealth ($317 trillion).

The G7 countries also represent more than 46% of the global gross domestic product based on nominal values, and more than 32% of the global GDP based on purchasing power parity.

Main Commodities, Trading Partners

Iran mainly exported gas condensates, floorings, methanol, non-alloy iron and steel, offal, polystyrene, pistachios and non-alloy iron/steel ingots to G7 members.

In exchange, major commodities imported into Iran from G7 members included field corn, oilcake, auto parts, soybean, barley and graphite electrodes.

In terms of total trade value, Germany topped the list among G7 members with Iran trade standing at 801,658 tons worth $2.72 billion, down by 27.69% and 21.08% in tonnage and value respectively YOY.

Exports to Germany amounted to 119,226 tons worth $254.47 million to register a 139.47% growth in tonnage and 29.48% decrease in value YOY.

Germany was Iran’s second biggest export destination among the countries under review and 17th in the world.

In return, Germany exported 682,432 tons of commodities worth $2.47 billion to Iran, down by 35.55% and 20.1% in tonnage and value respectively YOY.

Germany was the top exporter of goods to Iran among the states and fifth in the world.

Major Iranian commodities exported to Germany were offal, polystyrene, floorings and antiserum.

In return, Germany mainly exported graphic electrodes, antiserum, barley, machinery and pharmaceuticals to Iran.

Italy was Iran’s second biggest trading partner among G7 members during the 12 months, as two-way commercial exchanges stood at 661,742 tons worth $1.42 billion to register a 36.35% and 23.56% decline in tonnage and value respectively YOY.

Iran exported 468,133 tons of goods worth $276.36 million to Italy, down by 38.78% and 34.6% in tonnage and value respectively YOY.

Italy was Iran’s top export destination among G7 countries and 16th in the world during the period.

Iran’s exports to Italy included non-alloy iron/steel, methanol, non-alloy iron/steel ingots, vehicles parts and semi-finished non-alloy iron/steel products.

Iran imported 148,609 tons of commodities worth $1.14 billion from Italy, down 27.26% and 20.31% in tonnage and value respectively YOY, a majority of which were screw air compressor, industrial furnace parts and baking machinery.

Italy was the second exporter of goods to Iran among G7 states and 10th exporter to Iran in the world.

France was Iran’s third major trading partner among G7 members.

Mutual trade between Iran and France amounted to 122,329 tons worth $1.07 billion, indicating a 37.22% and 40.69% decrease in tonnage and value respectively YOY.

Iran’s exports reached 41,296 tons worth $27.61 million, down 11.45% and 29.74% in tonnage and value respectively YOY, while France’s exports to Iran reached 81,033 tons worth $1.04 billion, down by 45.32% and 40.93% in tonnage and value respectively YOY.

France was Iran’s seventh export destination and third exporter of goods to Iran among G7 members. The country was Iran’s 54th export destination and 11th exporter to Iran in the world.

Urea, saffron, pistachios, vehicles parts and floorings were Iran’s main goods exported to France, while France exported mainly auto parts, telecom devices and pharmaceuticals to Iran.

Japan was Iran’s third export destination, after Italy and Germany, among G7 members and 20th in the world, as Iran exported 430,097 tons worth $241.28 million during the period to register a 56.64% and 42.79% decline in tonnage and value respectively YOY.

Iran exported gas condensates, methanol, floorings, carpets and pistachios to Japan.

Highest Growths, Declines in Trade

Trade with all G7 members witnessed YOY declines, such that trade with France ($1.07 billion), Japan ($673.12 million) and the US ($187.53 million) saw the lowest declines of 40.69%, 38.25% and 37.84% respectively.

Iran’s exports to all G7 members also saw declines, such that exports to the US ($45.18 million), Canada ($33.38 million) and Japan ($241.28 million) witnessed the lowest declines of 65.85%, 51% and 42.79% respectively.

Imports from France ($1.04 billion), Japan ($431.84 million) and Italy ($1.14 billion) witnessed the highest declines of 40.93%, 35.39% and 20.31% respectively YOY.