STRENGTHENING BONDS: THE IMPORT-EXPORT TRADE RELATIONS BETWEEN TURKEY AND IRAN

 


INTRODUCTION

 

Trade relations have always played a crucial role in fostering diplomatic ties and promoting economic growth between nations. One such noteworthy partnership exists between Turkey and Iran. Situated at the crossroads of Europe and Asia, these neighboring countries have a long history of trade interactions, sharing cultural ties, and a strategic location. This blog is all about import-export trade relations between Turkey and Iran and delving into the factors that have shaped their enduring economic partnership over these past few years.

 

HISTORICAL CONTEXT

 

Turkey and Iran's trade relations date back centuries, with the Silk Road acting as a vital conduit for commerce between the regions. The geographical proximity and shared borders have contributed to a natural trade flow over time. Moreover, cultural and historical affinities have further strengthened the commercial ties between the two nations.

 

TRADE VOLUME AND BALANCE

 

In recent years, the bilateral trade volume between Turkey and Iran has been substantial. According to the latest available data, the trade volume in 2021 reached approximately $12 billion, reflecting the significance of their economic partnership. However, it is worth noting that the trade balance has generally been in favor of Turkey, with a higher export value compared to imports from Iran. Based on Turkey Trade Data report for previous years:

 

BILATERAL TRADE BETWEEN TURKEY AND IRAN

YEAR

IMPORT FROM IRAN

EXPORT TO IRAN

TOTAL TRADE

2018

USD 6.90 billion

USD 2.39 billion

USD

2019

USD 3.60 billion

USD 2.73 billion

USD

2020

USD 1.19 billion

USD 2.25 billion

USD

2021

USD 2.82 billion

USD 2.77 billion

USD

2022

USD 3.35 billion

USD 3.06 billion

USD

 

 

EXPORT COMMODITIES

 

Turkey's exports, as per Turkey Export Data report to Iran consist of various goods, including machinery, industrial products, textiles, vehicles, chemicals, and construction materials. Turkish manufacturers have found a receptive market in Iran, which has spurred their export growth. Notably, Turkey's automotive sector has emerged as a key player, with Iranian consumers showing a preference for Turkish-made vehicles.

 

IMPORT COMMODITIES

 

Iran, on the other hand, exports a wide range of commodities to Turkey. As per Turkey Import Data statistics, the major imports of Turkey from Iran are energy resources, particularly oil and natural gas, which have traditionally constituted a significant portion of Iran's exports to its neighboring country. Other notable imports from Iran include agricultural products, minerals, petrochemicals, and raw materials for various industries. These imports help meet Turkey's domestic demands while diversifying its sources of supply.

 

CHALLENGES AND OPPORTUNITIES

 

Despite the overall positive trajectory of their trade relations, Turkey and Iran have faced certain challenges. Sanctions and geopolitical tensions have occasionally disrupted the smooth flow of trade. However, both countries have shown resilience and adaptability in navigating these obstacles. Efforts to enhance cooperation through bilateral agreements and joint initiatives have helped mitigate such challenges and create new opportunities for trade expansion.

 

TRANSPORTATION AND INFRASTRUCTURE

 

Improving transportation links has been a focus area for Turkey and Iran, as it plays a crucial role in facilitating trade. The completion of various road and rail projects has strengthened connectivity between the two countries. The ongoing development of the Iran-Turkey gas pipeline, which aims to increase energy cooperation, is another significant step toward deepening their economic ties.

 

FUTURE PROSPECTS

 

The future looks promising for the import-export trade relations between Turkey and Iran. Both countries possess diverse economies with complementary sectors, providing a solid foundation for further collaboration. Opportunities for joint ventures, investment, and technological exchange hold the potential for mutual benefits and economic growth. Additionally, the normalization of diplomatic relations and the lifting of certain sanctions can further catalyze trade between the two nations.

 

As per Turkey Trade Data report for the year 2023 for the first five months, the countries registered bilateral trade worth USD 2.19 billion.

 

CONCLUSION

 

The import-export trade relations between Turkey and Iran have evolved significantly over time, driven by their historical, cultural, and geographical proximity. Despite occasional challenges, both countries have maintained a substantial trade volume, with various commodities flowing in both directions. As they continue to strengthen transportation links, expand cooperation, and explore new avenues for trade, Turkey and Iran are poised to foster a prosperous economic partnership that can bring mutual benefits and contribute to the stability of the region.

 

For more information and insights about Turkey and Iran's bilateral trade, get in touch with TradeImeX today.

Location: Pitampura, New Delhi, Delhi, India

Comments

Post a Comment

Popular posts from this blog

IMPORT EXPORT DATA: A BOON OR BANE FOR MARKETERS?

Image
  SYNOPSIS   Foreign trade of goods, otherwise called the global exchange of physical products and services is a kind of business wherein different sorts of services and products are sold starting with one country and then onto the next in return for cash or equivalent. It is important to keep a legitimate exchange balance between Imports and exports so as to keep track of the trade deficit and surplus. Each foreign transaction, be it import or export, is first recorded in the main report known as the Import Export Data report which is maintained by the customs ports of every nation. One of the best ways to enter a foreign market is by importing or exporting goods on a regular basis. This helps in building social integrity and a mutual sense of respect between the two nations.   We would like to give you an idea of all the details available in the full-fledged Export Import Data report that enables merchants to know about the ongoing trends in a particular nati...
Read more

COLLAPSE OF SILICON VALLEY BANK AND ITS IMPACT ON THE US ECONOMY

Image
  Silicon Valley Bank, also known as SVB Bank was one of the biggest and most popular state-chartered banks which was founded in the year 1983 by Wells Fargo. The bank had its headquarters in Santa Clara, California. The bank had its branches in California as well as Massachusetts. SVB offered a plethora of services that were able to fulfill the needs and demands of the tech-based industry and related countries. Due to its exceptional services, the Silicon Valley Bank became the top choice of every tech company in the United States, and slowly and gradually this bank became the most loved and trusted choice for more than half of tech-based companies and startups. When the SVB got collapsed on 10 th March 2023, it was the 16 th largest commercial bank in the United States. Big and popular companies such as Airbnb, Block, and Pinterest were the present clients of this bank. WHY DID THE SILICON VALLEY BANK COLLAPSED ON 10 TH MARCH 2023? The only reason behind this massive col...
Read more

VIETNAM FUELS ASIA’S GROWTH IN THE YEAR 2022

Image
  WHY IS VIETNAM GROWING RAPIDLY IN CURRENT TIMES?   The story about how Vietnam became a rapidly growing economy is very inspiring for other nations that are planning to expand and grow in the international market at a very rapid pace. Talking about Vietnam, the nation registered an annual growth rate of 8.02% in the year 2022 which is one of the fastest growth rates for Vietnam after 1997. Even those big multinationals like IMF and the World Bank didn’t predict this much growth rate for Vietnam in 2022 as the year was a laid-back year when all the businesses were reopening and getting back to normal after Covid restrictions were uplifted.   Based on our study and analysis, Vietnam’s amazing performance was due to its successful handling of the global pandemic and foreign strains and tensions. Some of the other major reasons that led to the successful growth rate of Vietnam in the year 2022 are as follows:   ·         T...
Read more