Iran's Main Trade Partners Scrutinized

EghtesadOnline: China, Iraq, Turkey, the UAE and Afghanistan were Iran’s top five export destinations during the current fiscal year’s first 11 months (March 21, 2021-Feb. 19), according to the spokesman of the Islamic Republic of Iran Customs Administration.

News ID: ۷۸۷۷۶۴

14 March 2022

IRICA data show 112.65 million tons of goods (except crude oil) worth $43.52 billion were exported from Iran during the period, registering a 10% and 40% year-on-year growth in weight and value respectively.

“China with 25.63 million tons (up 4.5% year-on-year) worth $12.63 billion (up 56% YOY) was the main export destination,” Rouhollah Latifi was quoted as saying by Mehr News Agency.

The tonnage and value of exports to China saw a 4.5% and 56% rise respectively year-on-year.

China was followed by Iraq with 28 million tons (up 17.5%) worth $8.2 billion (up 20%), Turkey with 15.3 million tons (up 160%) worth $5.6 billion (up 153%), the UAE with 9.8 million tons (down 28%) worth $4.2 billion (up 3%) and Afghanistan with 3.8 million tons (down 40%) worth $1.6 billion (down 20%).

The UAE, China, Turkey, Germany and Switzerland were the top five exporters to Iran during the period.

Total imports stood at 36.77 million tons worth $46.57 billion during the period, registering a 19% and 36% YOY increase in volume and value respectively.

The UAE with 11.5 million tons (up 164%) worth $14.57 billion (up 72%) was the biggest exporter, followed by China with 3.3 million tons (up 0.5%) worth $11.1 billion (up 26%), Turkey with 3.5 million tons (down 20%) worth $4.7 billion (up 22.5%), Germany with 683,000 tons (down 41%) worth $1.64 billion (up 2%) and Switzerland with 1.74 million tons (up 37%) worth $1.48 billion (up 94.5%).

Iran's foreign trade, excluding crude oil exports, stood at 149.4 million tons worth $90 billion during the period, registering a 12% and 38% growth in tonnage and value compared with the corresponding period of last year.

Essential Goods Form Significant Share of Imports

The imports mainly included essential goods, raw materials, production machinery, pharmaceuticals and medical equipment.

Also known as necessity or basic goods, essential goods are products consumers will buy, regardless of changes in income levels, such as rice, vegetable oil, sugar, wheat and flour.

Essential goods imports are entitled to subsidized currency, provided from oil export.

A total of 27.61 million tons of essential goods worth $17.53 billion were imported into Iran during the March 21, 2021-Feb. 19 period, registering a 28% and 60% rise in weight and value respectively compared with the similar period of last year, according to the IRICA spokesperson.

These imports accounted for 75% of the volume and 38% of the value of total imports during the period under review, Latifi said.

According to the official, 24.03 million tons worth $13.67 billion were imported using subsidized foreign currency at the rate of 42,000 rials per dollar, registering a 30% and 77% YOY rise in weight and value respectively.

The essential goods imports at the so-called “preferential” rate (42,000 rials per US dollar) included 8.65 million tons of corn worth $2.99 billion (down 6% in weight and up 29% in value), 1.87 million tons of unrefined and edible vegetable oils worth $2.55 billion (up 81% in weight and 185% in value), 19,889 tons of pharmaceuticals and medical equipment worth $2.35 billion (up 46% in weight and 58% in value), 6.04 million tons of wheat worth $2.08 billion (up 108% in weight and 157% in value), 2.25 million tons of oilseeds worth $1.58 billion (up 10% in weight and 47% in value), 2.26 million tons of soymeal worth $1.23 billion (up 40% in weight and 78% in value), and 2.93 million tons of barley worth $873.76 million (up 72% in weight and 17% in value).

Latifi noted that 3.58 million tons of essential goods imports worth $3.86 billion were purchased using “non-preferential” resources, registering a 20% rise in both volume and value compared with the corresponding period of last year.

“The goods included 1.36 million tons of rice worth $1.15 billion (up 49% YOY in weight and 40% in value), 1.15 million tons of unrefined sugar worth $518.03 million (up 13% in volume and 40% in value), 39,190 tons of machinery used in production of essential goods worth $366.82 million, 84,015 tons of heavy vehicle tires worth $303.69 million, 166,560 tons of fertilizers worth $124.46 million, 9.789 tons of pesticides and insecticides worth $91.54 million, 482 tons of veterinarian medicines worth $50.47 million and 776.65 tons of other goods, mainly red meat, chicken, eggs, pulses and tea, worth $1.25 million, up 12% and 19% in weight and value respectively.”