$763m in Iran's Non-Oil Trade Surplus With CIVETS

EghtesadOnline: Iran traded 11.16 million tons of non-oil commodities worth $6.42 billion with CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) in the last fiscal year (ended March 20, 2019) to register a 42.92% and 27.57% decline in tonnage and value respectively compared with the year before.

News ID: ۷۴۸۱۴۲

11 August 2019

Latest data released by the Islamic Republic of Iran Customs Administration show Iran’s exports totaled 9.6 million tons worth $3.59 billion during the year to March 20, indicating a 44.51% and 31.74% decrease in tonnage and value respectively year-on-year.

Imports stood at 1.55 million tons worth $2.83 billion, down 30.67% and 21.49% in tonnage and value respectively YOY.

As a result, Iran recorded $763.23 million in non-oil trade surplus with the CIVETS, according to Financial Tribune.

In the late 2000s, CIVETS were widely regarded as the next emerging market economies that would rise quickly in the coming decades. The acronym was coined in 2008 at the Economist Intelligence Unit in London.

CIVETS countries share fast-growing, relatively diverse economies as well as large populations of youths under 30. Hence, these countries have great potential for high levels of growth in domestic consumption.

Other positive aspects of this group include relative political stability (especially when compared to previous generations), a focus on higher education, reasonably sophisticated financial systems and growing economic trends overall.

The CIVETS’ economies are generally dynamic without dependence on external demand or commodity exports, which characterizes some parts of the emerging world. They also have a relatively low level of public debt, as well as corporate and household debt.

Main Commodities, Trading Partners

Iran mainly exported liquefied natural gas, non-alloy semi-finished iron/steel products, non-alloy iron and steel ingots, non-alloy zinc, non-alloy aluminum, urea, and bitumen to CIVETS countries.

In exchange, major commodities imported into Iran from CIVETS included cooking bananas, tobacco, synthetic fibers, cotton and wood pulp.

In terms of total trade value, Turkey topped the list among CIVETS with Iran trade standing at 8.15 million tons worth $4.98 billion, indicating a 49.54% and 30.61% decrease 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 top export destination among the countries under review and sixth in the whole world.

In return, Turkey 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.

Turkey was the top exporter of goods to Iran among CIVETS 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.

In exchange, Turkey mainly exported cooking bananas, tobacco and fibers to Iran.

Indonesia was Iran’s second biggest trading partner among CIVETS during the period under review, as two-way commercial exchanges stood at 2.24 million tons worth $917.86 million to register a 3.89% decline in tonnage and 0.52% increase in value YOY.

Iran exported 2.1 million tons of goods worth $786.86 million to Indonesia, up by 5.78% and 21.27% in tonnage and value respectively YOY.

Indonesia was Iran’s second export destination among CIVETS and ninth in the world during the 12-month period.

Iran’s exports to Indonesia included non-alloy semi-finished iron/steel products, non-alloy iron/steel ingots, liquefied propane and bitumen.

Iran imported 138,192 tons of commodities worth $131 million from Indonesia, down by 59.88% and 50.43% in tonnage and value respectively YOY, which mainly constituted paperboard, aluminum oxide, medium-density fibers, coconut and industrial alcohol.

Indonesia was the second exporter of goods to Iran among the states and 29th in the world.

Vietnam was Iran’s third major trading partner among CIVETS.

Trade between Iran and Vietnam amounted to 133,763 tons worth $231.78 million, indicating a 42.22% and 48.18% decline in tonnage and value respectively YOY.

Iran’s exports reached 115,259 tons worth $186.04 million, down 43.06% and 49.39% in tonnage and value respectively YOY, while Vietnam’s exports to Iran were at 18,503 tons worth $45.74 million, down by 36.35% and 42.6% in tonnage and value respectively YOY.

Vietnam was Iran’s third export destination as well as the third exporter of goods to Iran among CIVETS. The country was Iran’s 24th export destination and 45th exporter in the world.

Saffron, shrimp, figs, refined lead, bitumen and frozen chicken were Iran’s main goods exported to Vietnam, while Vietnam exported mainly coffee, pepper, aquatic feed and cellphones to Iran.

Egypt was Iran’s third export destination among the six states, after Turkey and Indonesia, among CIVETS nations and he 22nd in the world, as Iran exported 503,820 tons worth $217.75 million to Egypt during the 12-month period to register a 32.33% and 13.44% decrease in tonnage and value respectively YOY.

Iran mainly exported semi-finished non-alloy iron/steel products, non-alloy iron/steel ingots and methanol to Egypt.

Highest Growths, Declines in Trade

Trade with Indonesia ($917.86 million) saw a growth of 0.52%, while trade with Vietnam ($231.78 million), Turkey ($4.98 billion) and Colombia ($2.21 million) saw the lowest declines of 48.18%, 30.61% and 18.96% respectively.

Iran’s exports to Colombia ($944,497) and Indonesia ($786.86 million) saw growth of 32.38% and 21.27% respectively YOY, while exports to Vietnam ($186.04 million), Turkey ($2.36 billion) and Egypt ($217.75 million) witnessed the lowest declines of 49.39%, 40.22% and 13.44% respectively.

Imports from South Africa ($35.64 million) witnessed highest rise of 4.07% YOY, while imports from Egypt ($3.06 million), Indonesia ($131 million) and Vietnam ($45.74 million) witnessed the highest declines of 54.92%, 50.43% and 42.6% respectively YOY.