Iran's Non-Oil Trade With APEC Exceeds $31 Billion

EghtesdOnline: Iran traded 53.53 million tons of non-oil commodities worth $31.75 billion with member economies of Asia-Pacific Economic Cooperation during the last fiscal year (ended March 20, 2019) to register a 17.85% and 19.05% decline in tonnage and value respectively compared with the year before.

News ID: ۷۴۷۸۴۹

13 July 2019

Latest data released by the Islamic Republic of Iran Customs Administration show Iran’s exports totaled 43.21 million tons worth $14.89 billion during the period, indicating a 18.49% and 14.47% decrease in tonnage and value respectively year-on-year.

Imports stood at 10.31 million tons worth $16.85 billion, down 15.08% and 22.71% in tonnage and value respectively YOY.

As a result, Iran’s non-oil trade deficit with APEC member economies amounted to $1.95 billion, according to Financial Tribune.

Asia-Pacific Economic Cooperation is an inter-governmental forum for 21 Pacific Rim member economies that promotes free trade throughout the Asia-Pacific region. Inspired from the success of the Association of Southeast Asian Nations (ASEAN)’s series of post-ministerial conferences launched in the mid-1980s, APEC was established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world.

Headquartered in Singapore, APEC is one of the oldest forums and highest-level multilateral blocs in the Asia-Pacific region, and exerts a significant global influence.

APEC currently has 21 members. However, the criterion for membership is that the member is a separate economy, rather than a state. As a result, it uses the term member economies rather than member countries to refer to its members.

Main Commodities, Trading Partners

Iran mainly exported gas condensates, liquefied propane, film grade polyethylene, methanol, ethylene glycol and liquefied butane to APEC member economies.

In exchange, major commodities imported into Iran from APEC member economies included auto parts, field corn, nuclear reactor parts, graphite electrodes and palm oil.

In terms of total trade value, China topped the list among APEC member economies with Iran trade standing at 35.6 million tons worth $19.53 billion, down by 10.86% and 12.21% in tonnage and value respectively YOY.

Exports to China amounted to 32.16 million tons worth $9.21 billion to register an 8.43% decline in tonnage and 2.28% growth in value YOY.

China was Iran’s top export destination among the countries under review as well as in the whole world during the year.

In return, China exported 3.43 million tons of commodities worth $10.31 billion to Iran, down by 28.56% and 22.07% in tonnage and value respectively YOY.

China was the top exporter of goods to Iran among APEC member economies and also in the world.

Major Iranian commodities exported to China were liquefied propane, film grade polyethylene and methanol.

In exchange, China mainly exported auto parts, graphite electrodes, machinery and LCD/LED screen modules to Iran.

South Korea was Iran’s second biggest trading partner among APEC member economies during the period, as two-way commercial exchanges stood at 5.64 million tons worth $4.61 billion to register a 51.05% and 43.03% fall in tonnage and value respectively YOY.

Iran exported 4.91 million tons of goods worth $2.56 billion to South Korea, down by 51.07% and 41.46% in tonnage and value respectively YOY.

South Korea was Iran’s second export destination among APEC member economies and fifth in the world during the period.

Iran’s exports to South Korea included gas condensates, copper concentrates, molybdenum oxide and hydroxide.

It imported 735,116 tons of commodities worth $2.04 billion from South Korea, down 50.89% and 44.89% in tonnage and value respectively YOY, which mainly constituted auto parts, vehicles, chemicals and fridge parts.

South Korea was the second exporter of goods to Iran among the states and seventh in the world.

Russia was Iran’s third major trading partner among APEC member economies.

Mutual trade between Iran and Russia amounted to 2.67 million tons worth $1.62 billion, indicating a 41.48% and 59.13% rise in tonnage and value respectively YOY.

Iran’s exports reached 499,802 tons worth $280.53 million, down 4.98% and 4.07% in tonnage and value respectively YOY, while Russia’s exports to Iran hit 2.17 million tons worth $1.34 billion, up by 59.39% and 84.52% in tonnage and value respectively YOY.

Russia was Iran’s fifth export destination and the third exporter of goods to Iran among APEC member economies. The country was Iran’s 14th export destination and eighth exporter to Iran in the world.

Kiwi, tomatoes, apples and pistachios were Iran’s main goods exported to Russia, while Russia exported mainly nuclear reactor parts, sunflower oil, field corn and barley to Iran.

Indonesia was Iran’s third export destination, after China and South Korea, among APEC member economies and ninth in the world, as Iran exported 2.1 million tons worth $786.86 million to register a 5.78% and 21.27% increase in tonnage and value respectively YOY.

Iran exported non-alloy semi-finished iron/steel products, non-alloy iron/steel ingots, liquefied propane and bitumen to Indonesia.

Highest Growths, Declines in Trade

Trade with Russia ($1.62 billion), New Zealand ($39.74 million) and Australia ($176.13 million) registered a growth of 59.13%, 18.71% and 13.03% respectively YOY, while trade with Mexico ($5.86 million), the Philippines ($147.65) and Peru ($1.62 million) saw the lowest declines of 83.84%, 54.03% and 52.06% respectively.

Iran’s exports to Indonesia ($786.86 million), Malaysia ($246.93 million) and China ($9.21 million) saw growths of 21.27%, 19.72% and 2.28% respectively YOY, while exports to Peru ($51,190), Mexico ($4.72 million) and Chile ($596,321) witnessed the lowest declines of 90.25%, 86.35% and 77.47% respectively.

Imports from Russia ($1.34 billion), Hong Kong ($141.5 million) and New Zealand ($36.74 million) witnessed the highest increase of 84.52%, 33.06% and 24.7% YOY respectively, while imports from the Philippines ($126.79 million), Indonesia ($131 million) and Peru ($1.57 million) witnessed the highest declines of 51.21%, 50.43% and 45.06% respectively YOY.