Iran Foreign Trade Volume Sharply Dropped
Border closure due to the COVID19 outbreak and Sanctions hit Iran's trade balance.
ICBPS- Iran foreign trade volume exchanges hit $38.2 bn in seven months. The volume of exports of non-oil goods valued at $17.8 billion, state-run Eghtesad News quoted Iran’s custom chief.
In the first seven months of 2020, more than $18 billion was exported, and more than $20 billion worth of goods were imported.
Most of Iran’s exports were to Iraq, China, UAE, Turkey, and Afghanistan, respectively, and most imports were from China, UAE, Turkey, India, and Germany.
China, Iraq, Turkey, United Arab Emirates (UAE), and Afghanistan were Iran’s five major export destinations.
Based on new Data released, the ICBPS reported on October 12 that Iran’s import from its major trading partners has significantly declined as well as the countries’ exports to Iran.
New statistics from Iran’s main trading partners show a significant drop in Iran’s export to these countries, and in general, their exports to Iran have also decreased.
In September, new figures from the Indian Ministry of Finance show a 23-fold drop in the Indian subcontinent’s imports from Iran in the first seven months of 2020.
According to the statistics, India imported $3.2 billion of products from Iran in the first seven months of 2019, with that figure dropping to a meager $140 million in the same period in 2020. The nation’s export to Iran also fell by 45 percent to $1.575 billion.
Following China, India was previously Iran’s oil customer but has not bought oil from Iran since the second half of last year.
Iran’s export to Turkey have dropped from $3 billion to $580 million. Iran’s trade value with Turkey has fallen by 67 percent in the first seven months of 2020. The value of trade between Tehran and Ankara fell 67 percent, compared to last year’s same period.
Tehran Chamber of Commerce Industries Mines and Agriculture (TCCIMA) put Iran-Turkey seven-months trade as $4.2 billion as the value has dropped 67 percent.
Of this trade, Iran exported about $ 509 million to Turkey, and in return, it imported $ 878 million from Turkey, which decreased by 82 percent and 37 percent, respectively, compared to the same period in 2019.
Iran’s trade balance with Turkey dropped sharply in the first seven months of 2020, mainly due to a drastic decline in Iran’s oil export to its western neighbor, according to state-run ILNA.
A drastic drop in Iran’s export of oil products to Turkey has been reported as the primary reason for the high decrease of bilateral trade between the two neighbors during the mentioned period of time, Tehran Times quoted the TCCIMA.
Surveying the monthly-trend of Iran’s trade with Turkey since the outset of 2019 shows its export value to Turkey was higher than import from the country (in the first five months of 2019). In June 2019, however, the value of Iran’s export to Turkey was lower than its import from the country, and it continued until almost the end of July.
According to officials, it coincided with a 70 percent drop in Iran’s export to Turkey in June.
China, Japan, and South Korea have also released seven-month trade reports with Iran as the seven-month trade balances with all of the nations have been negative.
At the same time, Iran’s export to South Korea fell from $2.1 billion to below $7 million, and its imports fell from $282 million to $105 million, showing that Iran’s export to South Korea has become almost non-existent.
Iran’s exports to Japan also fell from about $1.2 billion to $22 million, though the nation’s imports from Japan also increased by 32 percent to $45 million.
As Iran’s major trading partner, China still maintains a large trade volume with Iran, but Tehran’s seven-month exports to Beijing also fell 61 percent to $ 3.5 billion. Iran’s imports from the Far East nation decreased by six percent during the same period to $5.12 billion.
The EU’s statistics on trade with Iran, compared with the first half of 2019, indicate a sharp drop compared with the same period in 2018.
The Institute of Capacity Building for Political Studies (ICBPS) is a non-governmental research institute focusing on political studies, international security, and international relations.
The Institute of Capacity Building for Political Studies (ICBPS)
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