Examining obstacles and opportunities for trade with Eurasia

According to the information base of the Trade Development Organization, the opportunities and obstacles of the free trade agreement with the member countries of the Eurasian Economic Union was a topic that was discussed in the economic table program of the first channel of Sima, in this program, Mirhadi Sidi, the adviser of international affairs of the Development Organization Tejarat, Vali Kaleji, an expert on Eurasian issues, Ahad Zourhami, the secretary of the association, and Amir Abedi, the head of the non-oil export commission of the Chamber of Commerce, were present.
At the beginning of this program, Mirhadi Sidi, the international affairs consultant of the Trade Development Organization, referring to the use of agreements in exports by other countries, said: the average export of the world that uses the benefits and privileges of the agreement is more than half of the world’s exports; Meanwhile, about 5% of non-oil exports are covered by the agreements we have with other countries, and this shows a gap for us.
He continued: We did not use the capacity of trade agreements to support export development to the extent that they use in the world; This agreement is the first free trade agreement, which reduces the tariff of about 80% of goods from both sides to zero, and has a good basis for creating trade and diverting trade.
Sidi added: Before this agreement, the Eurasian countries imported needs from other countries, after this agreement, the source and origin of these needs will be diverted and supplied from Iran, and the same thing will happen to us. This issue is important from this point of view, for example, Turkey has 22 free trade agreements, that is, tariffs are zero with 22 important trading partners, and businessmen use this opportunity.
The International Affairs Advisor of the Trade Development Organization stated that this is the first serious agreement on free trade that Iran is concluding and said: Our negotiations started about a year and a half ago and our negotiations continued last week in Isfahan with the 5 countries of the Eurasian Economic Union. had The free trade agreement is a complex agreement with between 150 and 200 pages of text, and in 9 chapters, the rules and standards that the two parties should organize their business based on are compiled.
He reminded: We have almost completed the text and entered the list of products, in the field of agricultural products, our progress was good to a large extent, and we will enter industrial products in the next round. The Eurasian Union has announced that we will remove tariffs on most industrial products if Iran is ready.
Stating that there is a need for three more rounds of negotiations, he said: We expect that the next three rounds of negotiations will continue.
Regarding the actions of the Trade Development Organization regarding the establishment of communication between the businessmen of Iran and the member countries of Eurasia, Sidi said: When business agreements are concluded, they do not become effective by themselves unless the businessmen and economic activists take care; From now on, I invite the country’s important producers and economic activists to focus their marketing on this market and not wait for the completion of the negotiations and the implementation of the agreement.

بررسی موانع و فرصت های تجارت با اوراسیا

He added: Some arrangements should be made for the market years ago, they should adjust the focus of their marketing strategy, be present as a witness in this market, they may not do any business for a year, but they should conduct market studies so that they can to enter and have influence in the market. For example, an Iranian company conducted marketing studies in this market for about two years, and within a year, it removed a German company from the Eurasian market with its own entry.
The international affairs consultant of the Trade Development Organization noted: the market that exists is a very large market with about 180 million people and 400 billion dollars of imports and some years nearly 300 billion dollars of imports from the world. A manufacturer that focuses on this market and has a calculated entry and penetration may not need any other market.
He added: Trade Development Organization provides a kind of specialized assistance to companies by deploying commercial consultants in these markets. Sometimes, if there are problems, they are solved through commercial consultants.
Regarding the number of business advisors in Eurasian countries, Sidi said: At one time, the number of business advisors had increased to 24, and currently we only have advisors in Armenia and Russia. There have been some problems in dispatching the advisors. The most important markets in this area are Armenia and Russia, which have business advisors. Raisen has also been selected for Belarus and will be sent soon.

The most important challenge is the Russian language

In the continuation of Kaleji, an expert on Eurasian issues, regarding the issues that businessmen should pay attention to in doing business with Eurasia, he said: The Eurasian domain is geographically Central Asia, the Caucasus, the Russian Federation, and the Caspian Sea, and in terms of cultural, linguistic, and ethnic diversity. It is very diverse; At the same time, we must note that we have a very long historical, linguistic and cultural history with this region, especially with the countries of Central Asia and the Caucasus.
He continued: Our trade with this region is very long, one of the reasons that in the past Persian language was the dominant language of the region was not that Persian language was only the language of poetry or the language of courts and governments, Persian language was the language of commercial contracts, the level Iran’s trade with the region was high through the Silk Road, sea routes, Darband and Dagestan.
Kaleji noted: Businessmen should continuously participate in specialized and commercial exhibitions in the countries of the region, Mr. Sidi and his colleagues in the Trade Development Organization, Chambers of Commerce and our business advisors in the countries of the region should provide space and conditions to Periodical and regular trade fairs of Iranian products should be held there.
He added: Measures should be taken so that their businessmen come to our country and direct communication is established. One of our problems in the Eurasian area is the Russian language, which requires translators, sometimes from Tajiks, who in this area, especially in Russia, our companies can use the capacity of Iranology chairs in the countries of the region, that is, Russian Kazakhs or Armenians. who studies Persian language in the Iran Studies department, use them as translators and consultants.
This expert on Eurasian issues reminded: It is both an economic task, and the needs of companies will be met, and it will also strengthen the seats of Iranology and our cultural influence in the region. This is what Turkish companies are doing specifically in the region.
He emphasized: Another important point is that we should not paint an idealistic picture of Eurasia inside the country. I am very happy that you pointed out the challenges and obstacles. Our businessmen and companies should be aware that the path is not a smooth path if they do not know the legal complexities, if they do not proceed with a legal advisor in the contracts, if the chambers of commerce are Do not put the title of the verdict and the arbitrator in their contracts, so that if there is a dispute, the chambers of commerce will be in the process; If we move with open eyes, this process can be an opportunity for us.
Kaleji reminded: In the media and analytical space of our country in the last three or four years, it has been mentioned that Iran is not a member of the Union and does not want to become a member of the Union because Iran is not in the geography of Eurasia. Countries outside the geography of Eurasia like Iran cooperate with the Union in two ways or with trade. The preference that we are right now or the free trade that we are in the process of upgrading from preferential trade to free trade.
He added: Nearly 60% of our exports to Eurasia are agricultural, horticultural, dairy and livestock products. One of our problems that must be solved once and for all in the process of free trade is the approvals of the market regulation headquarters. When eggs, tomatoes, or agricultural products that become expensive and rare inside, the market regulation headquarters decides to ban exports to manage the market, this is one of the biggest problems.
He added: under these circumstances, no Iranian exporter in Russia, Kazakhstan, Armenia, etc. has the courage to sign a three-year, five-year or long-term contract in these high-risk areas, because he may issue six months to a year. It bans the product for three or six months. In this case, the Iranian exporter will suffer damage and his credit and reputation will be lost. It will be very difficult for Iran to regain that market.

Knowing the market and providing the necessary infrastructure for export development

Further, Ahad Zourhami, the secretary of Setsa Association, said regarding the measures taken by this association to export to Eurasia: If we reach this stage, Eurasia with these 5 countries definitely has a high potential for us to export machines, except for Russia, which itself is a machine manufacturer. 4 other countries have great potential for the equipment and machines produced in our country.
Regarding the obstacles to the export of machinery and equipment to Eurasian member countries, Zourhami said: There is no obstacle, now that there is no free trade agreement, it is like other countries, there have always been obstacles to export, this is a general and general issue, with all countries there is a series of regulations. We have that it is common for all countries, there is no special obstacle, but we have not yet identified exports in these countries and we still do not know their markets.
He added: The first step is to know these markets, we must develop the market, then provide the infrastructure for this and be able to export. it is wonderful
Regarding the demands of the industrialists and exporters from the government regarding trade with Eurasia, Zourhami said: provide the possibility to identify the needs of the market; It means that one of the Eurasian countries should also be present in these meetings and meetings that were held in Isfahan a few days ago. In this case, we can know the market better.
He continued: First of all, we have to identify their market, they don’t know us either. They don’t know our construction potentials, we haven’t found our own market completely, these connections should be strengthened, these connections should be provided through exhibitions and seminars to use these opportunities.

The Eurasian market is a unique opportunity

In addition, Amir Abedi, the head of the non-oil export commission of the Chamber of Commerce, also said regarding trade with Eurasia: “We are currently negotiating to definitely join the negotiations with Eurasia. The discussion of the negative list is on the agenda, one of the expert discussions that should go well.” God willing, we will be able to draw a good picture of the realities between the two countries and the countries of the region and be able to achieve free trade.
He continued: We must have prerequisites for export, the role of the sovereign and government sector and the private sector, as you mentioned, the necessary foundations in the field of foreign trade must be stable in the field of macroeconomics. It means that we must take measures in the field of export to ensure that the exporter is doing something with less risk and has sustainable interests in this sector; Therefore, we consider the Eurasian market as a unique opportunity and consider this agreement as an exercise to be able to enter into international agreements such as world trade. Let’s talk more about private and government.
Abedi added: In the field of the private sector of the Iran-Kazakhstan joint chamber of commerce, according to the diligent follow-up, one of the main obstacles in the economic development with one of the powerful countries of the Eurasian region, namely Kazakhstan, was the issue of visa obstacles, which occurred with the visit of the president of Kazakhstan and The negotiations that they had with the government to cancel the 14-day visa between the two countries were carried out for Iranian citizens and economic activists from the day of Eid al-Adha.
The head of the non-oil export commission of the Chamber of Commerce reminded: This issue creates a unique opportunity for us to be present in the countries of Eurasia. The only country where we have canceled the contract started with Kazakhstan, so one of the obstacles in the development of cooperation was removed. The second point is in the field of logistics, investment should be made in the field of transportation, rail and marine infrastructure so that traders, especially small and medium industries, can easily access this market.
He continued: The third point is bank transactions as one of the main commercial obstacles. We came from Kazakhstan last week to organize the largest exclusive exhibition of the Islamic Republic after the visit of the President through intensive planning with the cooperation of the Ministry of Foreign Affairs, the Trade Development Organization and the Embassy. We held in Almaty city, more than one hundred economic operators and 65 companies presented their goods and services in this exhibition, and it was a very good opportunity that the points mentioned by friends, such as attending a special exhibition or an exhibition pavilion, can help us To introduce our goods and find our business partner, we must keep in mind that the rules and laws of these countries each have their own characteristics, the thing that works with Kyrgyzstan today, friends, is not the same with Kazakhstan.

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