Iran Looks to Strengthen Foothold in Kazakhstan Market

EghtesadOnline: Iran plans to hold an exhibition in Kazakhstan from July 1-3, the head of Trade Promotion Organization of Iran has announced.

News ID: ۷۸۷۸۲۰

13 April 2022

The exhibitors will showcase their products and services in a wide range of fields, including buildings and construction technologies, agricultural machinery for livestock and poultry, technical and engineering services, oil, gas and petrochemicals, industrial machinery, food industries, knowledge-based services, mining machinery, medicine and medical equipment, home appliances, furniture and wooden products, and health tourism, IRNA reported.

According to Alireza Peyman-Pak, the event is aimed at promoting Iranian goods and services in Kazakhstan’s market.

The TPO; Trade and Exhibition Event Promotion Company; Iran’s Embassy in Nur-Sultan; Iran Chamber of Commerce, Industries, Mines and Agriculture; Kazakhstan’s Ministry of Trade and Integration; and Iran-Kazakhstan Chamber of Commerce are sponsors of the upcoming expo.

Kazakhstan mainly imports fruits, nuts and dried fruits, mineral materials and products, ceramics, glassware, home appliances and kitchenware, plastic pipes and products, tomato, potato, onion, kiwi, cucumber, mushrooms, lettuce, grapes, marble, cosmetics products, dates, saffron, honey, pistachios, industrial machinery, electrical appliances and machines, leather, white cement, furniture, milk, cream and cheese.

Iran and Kazakhstan reaffirmed their readiness to increase trade cooperation. This was announced during the meeting of Kazakh Minister of Trade and Integration Bakhyt Sultanov and Iranian First Vice President Mohammad Reza Mokhber Dezfouli in Tehran on Feb. 22, the Kazakh Prime Minister’s press service reported.

Sultanov said cooperation with Iran is one of the country’s foreign policy priorities and Iran is one of the key trade and economic partners of Kazakhstan in the region, The Astana Times reported.

Trade turnover, which reached $440.1 million in 2021, is expected to increase to $3 billion in the coming years.

During the meeting, both sides discussed opportunities for cooperation in banking, logistics, mining industry as well as the joint use of sea and dry ports of the countries.

“The merger and balancing of the interests and capabilities of the two countries, including industrial cooperation, will contribute to the convergence of economics and the promotion of the economic interests of Kazakhstan and Iran,” Dezfouli said.

To develop business contacts, Kazakhstan will resume regular flights between the two countries four times a week.

Sultanov informed Dezfouli on the outcome of the 17th meeting of the Intergovernmental Commission held on Feb. 21, where Sultanov and Iranian Agriculture Minister Javad Sadati-Nejad agreed to hold the 18th meeting in Nur-Sultan in 2023.

Heading a delegation of public sector officials and businesspeople active in a host of economic areas, Kazakhstan’s Prime Minister Alihan Smaiylov and Minister of Trade and Integrity Bakhyt Sultanov visited Tehran on Feb. 21 to take part in the 17th Iran-Kazakhstan Economic Commission meeting.

The two sides surveyed opportunities to expand bilateral ties in the fields of trade, agriculture, transportation, investments, technical and engineering services, energy and cultural affairs, Mehr News Agency reported.

The 54-strong Kazakh delegation was made up of ministry officials in foreign affairs, energy, agriculture, economy and trade as well as CEOs of 25 private sector businesses.

Exports to Kazakhstan

Iran exported a total of 360,300 tons of goods worth $132.6 million to Kazakhstan during the first nine months of the current Iranian year (March 21-Dec. 21, 2021) to register a 6.7% rise in weight and a 21% fall in value compared with the similar period of last year, according to the head of Iran-Kazakhstan Chamber of Commerce.

The exported goods mainly included polyethylene ($29.9 million), fruit ($17.1 million), dates ($16.7 million), pistachio ($13.2 million), iron bars and steel products ($5.5 million), carpet and flooring ($4.8 million), paint ($4.4 million) and potatoes ($4.2 million).

“Other exported commodities include dairy and food products, tomato paste, cement and plaster, solid hydroxide, stone and bricks, glass, tea, sugar and sugar cubes, chocolate and pastry, porcelain tableware, tobacco, sheets and blanket, tiles and ceramics, soap and ethylene glycol,” Amir Abedi was also quoted as saying by Mizan Online.

Iran imported 117,600 tons of products worth $37.9 million from its neighbor during the same period to register a 30.7% and 1.3% growth in volume and value respectively, compared with the corresponding period of last year.

“Overall, Iran-Kazakhstan bilateral trade stood at 477,900 tons worth $170.5 million during the period, registering an 11.7% increase in weight but a 17% decline in value year-on-year,” he said.

According to Abedi, Kazakhstan is the biggest Central Asian country with which Iran has common borders via the Caspian Sea.

This, he said, gives Iran an advantage as it can conduct trade via marine and road transport with a relatively large market in its proximity.