OIC Iran’s Top Trade Partner

EghtesadOnline: The countries of the Organization of Islamic Cooperation imported more than 27.4 million tons of goods worth $10.1 billion to become the main export destinations for Iran’s non-oil products during the first half of the current Iranian year (March 21-Sept. 22), the Trade Promotion Organization of Iran announced.

News ID: ۷۷۹۸۵۸

23 October 2017

The figures indicate a 7% and 11% decline in weight and value respectively compared with last year's corresponding period.

OIC also tops the list of economic regions from where imports were made into Iran in H1, as 3.46 million tons of goods worth $5.99 billion were imported from the member countries into Iran, indicating a 3% fall in weight and 19% increase in value year-on-year, according to Financial Tribune.

OIC is an international organization founded in 1969, consisting of 57 member states. The organization states that it is "the collective voice of the Muslim world" and works to "safeguard and protect the interests of the Muslim world in the spirit of promoting international peace and harmony". It has permanent delegations to the United Nations and the European Union.

According to the Islamic Republic of Iran Customs Administration, Iran exported 58.63 million tons of non-oil goods worth $20.54 billion in H1, indicating a 3.2% decline YOY.

China was the main customer of Iranian products during the six-month period, as Iran exported $4.31 billion worth of goods to the Asian country, 7% more than the corresponding period of last year.

Other major export destinations included Iraq with $3.18 billion, the UAE ($2.95 billion), South Korea ($2.06 billion) and India ($1.33 billion).

Iran's non-oil imports in H1 amounted to 17.19 million tons worth $23.59 billion, up 15.37% YOY.

Major exporters to Iran included China ($5.69 billion), the UAE ($4 billion), Turkey ($1.67 billion), South Korea ($1.51 billion) and India ($1.35 billion).

Exports to ASEAN

Exports to the Association of Southeast Asian Nations during the period stood at over 2.03 million tons worth $779 million, registering the highest rise of 78% and 128% in volume and value respectively among all export destinations in the world.

ASEAN is a regional intergovernmental organization comprising 10 Southeast Asian states, which promotes Pan-Asianism and intergovernmental cooperation and facilitates economic, political, military, educational and cultural integration among its members and Asian states.

Since its formation in 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand, the organization's membership has expanded to include Brunei, Cambodia, Laos, Myanmar and Vietnam. Its principal aims include accelerating economic growth, social progress and sociocultural evolution among its members, alongside the protection of regional stability and the provision of a mechanism for member countries to resolve differences peacefully.

ASEAN is an official United Nations Observer.

Other Export Destinations

Exports to the European Union experienced the sharpest decline in H1. Around 610,000 tons of non-oil goods worth $617 million were exported to the EU, showing a 32% and 24% decline in weight and value respectively.

Around $3.4 billion worth of commodities were exported to the [Persian] Gulf Cooperation Council, nearly $3.13 billion to the Economic Cooperation Organization and $901 million to the Commonwealth of Independent States, registering a 13%, 18% and 5% decline in value respectively YOY.

[P]GCC is a regional intergovernmental political and economic union consisting of all Arab states of the Persian Gulf, except for Iraq. Its member states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

ECO is a Eurasian political and economic intergovernmental organization that provides a platform to improve development and promote trade and investment opportunities. It is an ad hoc organization under the United Nations Charter, which aims to establish a single market for goods and services, much like the European Union.

CIS is a loose confederation of nine member states and two associate members that are located in Eurasia, formed during the dissolution of the Soviet Union, and which were all former Soviet Republics.

Georgia withdrew its membership in 2008, while the Baltic states (Estonia, Latvia and Lithuania), which regard their membership in the Soviet Union as an illegal occupation, chose not to participate.

Every ton of Iran’s exported goods in H1 was valued at an average of $350, which shows a 1.2% rise compared with the first half of last year.

ASEAN experienced the highest rise in its exports to Iran with over 1.37 million tons of exports worth $961 million, indicating a 50% and 46% rise in volume and value respectively.

Imports from the CIS registered the biggest fall. Over 1.2 million tons of goods worth $596 million were imported from the member states, showing a 25% and 42% decline in weight and value respectively.

More than $4.76 billion worth of products were imported from the EU, close to $3.79 billion from (P)GCC and $2.01 from ECO countries, indicating a 32%, 20% and 27% increase respectively.

Every ton of imported goods into Iran in H1 was valued at an average of $1,372, showing a 6.8% rise year-on-year.