In this article, an effort has been made to explore the
current state and future prospects of Iran’s trade with its neighbors, examine
key sectors, trade volumes, and strategic partnerships.
As of late 2024, Iran’s non-oil trade with its neighbors has
seen a notable increase. Non-oil trade volumes reached US$55.3 billion in the
first 11 months of the year, with exports constituting 67 million tons of goods
valued at US$25.8 billion and imports amounting to 21.4 million tons valued at US$29.4
billion.
This
represents a significant increase in trade flows, driven by an increase in
exports of petrochemical products, minerals, and agricultural goods.
Iran’s primary trading partners in the region include Iraq,
the UAE, Turkey, Pakistan, and Afghanistan. The UAE and Iraq are Iran’s two largest
trade partners, especially in terms of exports.
For example, in the first seven months of 2024, Iran’s trade
with Iraq was valued at US$7.6 billion, making it one of the most crucial
destinations for Iranian goods. The major exports to Iraq include petrochemicals,
cement, and agricultural products, while imports primarily consist of machinery
and food items.
Turkey has also maintained its position as a key trading
partner, with trade between the two countries amounting to US$9.9 billion in
the same period. Iranian exports to Turkey largely consist of natural gas and
petroleum products, while imports from Turkey are diverse, including electrical
machinery and textiles.
Iran’s geopolitical location, bordered by 15 countries, gives
it a strategic advantage in the trade of goods and services. This advantageous
position allows Iran to serve as a key transit hub for goods moving between
Central Asia, the Caucasus, and West Asia.
In particular, the development of international transport
corridors, such as the North-South Transport Corridor (INSTC), which links Iran
with Russia, India, and Central Asia, is expected to enhance Iran’s role in
regional trade.
Furthermore, the expansion of special economic zones, such
as the Lamerd Free Trade Zone, has created new opportunities for businesses to
engage in regional trade. This diversification of trade routes and
infrastructure investment is expected to foster deeper economic ties with
countries in the Persian Gulf and beyond.
Despite challenges, such as global sanctions and regional
instability, Iran’s government has focused on expanding its non-oil exports,
particularly to its neighbors. This strategy is part of a broader effort to
reduce Iran’s dependency on oil revenues and diversify its economy.
The Iranian government’s push for stronger trade relations
with Central Asia, Russia, and even countries like Oman and Turkmenistan, is
driven by the need for economic diversification and the potential to access new
markets. Iran’s trade with Russia, for example, has grown steadily, with recent
figures showing a trade volume of US$1.5 billion in 2024.
The economic outlook for Iran’s trade with neighboring
countries is promising. The country’s strategic location, combined with
increased infrastructure investment and a strong focus on non-oil exports,
positions Iran as a key player in the regional economy.
However, the ongoing challenges of sanctions and
geopolitical tensions remain factors to consider as Iran continues to navigate
its path toward economic diversification.
If these trade relationships continue to strengthen, Iran
could significantly enhance its role as a regional economic hub, ensuring
long-term stability and growth for its economy.
