Iran's Trade With OIC Exceeds $28b

EghtesadOnline: Iran traded 61.8 million tons of non-oil commodities worth $28.73 billion with the members of the Organization of Islamic Cooperation during the current fiscal year’s first seven months (March 21-Oct. 22), according to the latest data released by the Islamic Republic of Iran Customs Administration.

News ID: ۷۸۷۳۱۶

21 November 2021

The UAE with 13.47 million tons worth $11.19 billion, Turkey with 13.5 million tons worth $6.26 billion, Iraq with 21.09 million tons worth $6.11 billion, Afghanistan with 2.8 million tons worth $1.13 billion and Pakistan with 1.77 million tons worth $824.76 million were Iran’s main trade partners during the period.

Iran’s exports totaled 49.59 million tons worth $15.59 billion during the seven-month period.

Iraq with 19.74 million tons worth $5.48 billion, Turkey with 10.99 million tons worth $3.4 billion, the UAE with 6.6 million tons worth $2.59 billion, Afghanistan with 2.8 million tons worth $1.13 billion and Pakistan with 1.59 million tons worth $655.15 million were the top export destinations among OIC members.

Imports reached 12.21 million tons worth $13.14 billion in the seven months under review.

The UAE with 6.87 million tons worth $8.6 billion, Turkey with 2.5 million tons worth $2.86 billion, Iraq with 1.35 million tons worth $630.33 million, Oman with 641,225 tons worth $303.92 million and Malaysia with 200,204 tons worth $291.34 million were the main importers.

Founded in 1969, the Organization of Islamic Cooperation is an international organization consisting of 57 member states, including Iran, with 47 countries being Muslim majority countries. Some, especially in West Africa, have large Muslim populations but are not necessarily Muslim majority countries.

Iran traded a total of 98.7 million tons of non-oil goods worth $54.8 billion with other countries during the seven months under review to register an increase of 16.5% in weight and 43% in value compared with the corresponding period of last year. This means OIC members accounted for more than half of Iran’s total trade.

According to Mehdi Mirashrafi, the head of the Islamic Republic of Iran Customs Administration, exports stood at 75.2 million tons worth $27.1 billion, which shows year-on-year growth rates of 15% and 47% in weight and value respectively.

“Iran’s imports hit 23.5 million tons worth $27.7 billion, registering an increase of 21% in weight and 38% in value compared with last year’s same period. Essential goods, machinery, industrial parts, raw materials and intermediate goods accounted for the lion’s share of imports,” he was quoted as saying by the news portal of IRICA.

Also known as necessity goods, essential goods are products consumers will buy, regardless of changes in income levels.

The main export destination was China with 16.9 million tons of goods worth $7.7 billion. Iraq, Turkey, the UAE and Afghanistan came next.

Exports mainly included natural gas, methanol, polyethylene, semi-finished steel products, liquefied polyethylene, steel ingots, rebar, urea, copper cathode and bitumen.

“Essential goods accounted for 16.6 million tons worth $11 billion of total imports, which indicate an increase of 71% in weight and 40% in value YOY. Subsidized foreign currency at the rate of 42,000 rials per US dollar were allocated to the import of 14.4 million tons of essential goods worth $8.8 billion, registering a 61% rise in weight and a 32% increase in value YOY,” the IRICA chief said.

The main exporters to Iran were the UAE, followed by China (1.9 million tons worth $6.1 billion).

Cellphones, animal corn, wheat, soybeans, sunflower oil, soymeal, barley, rice, sugar and palm oil were the main imports during the period.

Fiscal 2020-21 in Review

Iran’s trade with OIC members stood at 82.86 million tons worth $36.66 billion in the fiscal 2020-21.

Top trade partners during the year under review were the UAE with 20.57 million tons worth $14.42 billion, Iraq with 25.77 million tons worth $7.58 billion, Turkey with 11.24 million tons worth $6.94 billion, Afghanistan with 7.04 million tons worth $2.31 billion and Pakistan with 2.72 million tons worth $1.18 billion.

Exports to OIC members hit 70.49 million tons worth $21.05 billion.

The main export destinations included Iraq with 25.67 million tons worth $7.45 billion, the UAE with 15.44 million tons worth $4.66 billion, Turkey with 6.38 million tons worth $2.54 billion, Afghanistan with 7.03 million tons worth $2.31 billion and Pakistan with 2.55 million tons worth $1 billion.

Fiscal 2020-21 imports stood at 12.37 million tons worth $15.61 billion.

The UAE with 5.14 million tons worth $9.76 billion, Turkey with 4.86 million tons worth $4.4 billion, Oman with 1.28 million tons worth $433.97 million, Malaysia with 223,090 tons worth $288.02 million and Iraq with 102,818 tons worth $133.85 million were the top exporters to Iran among OIC members in the period under review.

Iran’s total foreign non-crude oil trade stood at 145.7 million tons worth $73 billion in the last fiscal year (March 2020-21).

According to Mirashrafi, exports accounted for 112 million tons worth $34.52 billion and imports constituted 34.4 million tons worth $38.5 billion of the sum.

Iran’s main exports included gasoline, natural gas, polyethylene, propane, and pistachio.

The main export destination was China with 26.6 million tons worth $8.9 billion of imports from Iran followed by Iraq, the UAE, Turkey, and Afghanistan.

“These five countries imported more than 80 million tons of non-oil goods worth $25.7 billion,” the IRICA chief was quoted as saying by Mehr News Agency.

“Iran’s foreign trade declined by 25 million tons due to sanctions and the Covid-19 pandemic, such that the country’s trade deficit stood at $4 billion.”

Mirashrafi added that a total of 23.1 million tons of essential goods including corn, cellphones, rice, soymeal, oilseeds, wheat and unprocessed oils, worth $12 billion were imported during the period under review.

Iran imported 3.5 million tons of essential goods worth $9.7 billion from China, 5 million tons worth $9.6 billion from the UAE, $4.3 billion worth of goods from Turkey, 2.2 million tons worth $2.1 billion from India and 1.2 million tons worth $1.8 billion from Germany in the year ending March 20, 2021.