As you know Iran has located in the Middle East, and this country has many types of potentialities. In this land in comparison with other countries have the majority of capabilities. So we can say that Iran is a fruitful country. In this article, we will review some trade issues of Iran and we will talk about the importance of exporting Oil and Gas to the other countries. Which countries are the buyer of Iran’s Oil and Gas? Is it possible to trade with Iran? We want to cover the petroleum industry of Iran more here and what other products and handicrafts of Iran can be export to the world and the sanction against Iran is another main reason that could decrease trading issues with Iran.
Types of trading fields and Products
Despite oil and gas Iran have different kinds of products and agricultural and handicrafts for exporting to the other countries. Iran has some buyers of products in Asia such as Iran, Turkey, Emirates, China, and Afghanistan.
Here I want to name some of the main exporting products to the target bazaars. For example, about agricultural products and pistachio and pistachio nuts, Iran exports these to Germany, Emirates, Iraq, India, and Hong Kong.
Raisin; in another Iranian agricultural product which exported to Spain, Iraq, Russia, Turkey, and Emirates.
Saffron; the Iranian red gold, Iran is famous for the high-quality saffron that Pakistan, Emirates, Spain, China, Afghanistan, and Honk Kong is the main buyer of this product.
Dates; the southern part of Iran is the best source of very qualified Persian Dates. Which also Turkey, Emirates, India, Afghanistan, and Kazakhstan is the purchaser.
I must add that addition to the above-mentioned products Iran also have ability to exports other products such as Sausages, Ham (made of Hallal Meats), packed fishes, canned flesh.
Foodie Products of iran
Tomato paste is one of the main products that Iraq, Afghanistan, Russia, Emirates, and Kuwait are the main buyer.
Different kinds of sweets and cookies which Iran exports these products to Iraq, Afghanistan, Pakistan, Azerbaijan, and Turkmenistan.
Honey is the other products that exports to Emirates, Turkey, Malaysia, Saudi Arabia, and Afghanistan.
Non-alcoholic beer is other industrial goods of Iran that we export to Afghanistan, Georgia, Emirates, and Australia.
Other non-oil products
According to the statistics, the main exporter countries of medical equipment from Iran is; Emirates, Germany, Malaysia, Belarus, and Poland. These statics shows that most European countries have become a substitute for Asian users.
The human medicines that exports to 5 other countries such as Germany, Russia, Syria, and Iraq. Also the countries such as India, Emirates, Syria, Yemen, and China.
The fourth group of Iranian products such as mechanic and electric is the main target bazar which is according to the below list.
Car manufacturing, car spare parts, vehicle’s tire, industrial electric panels, lightening and Chandelier, electrical switches and wire/cable. The user of the above-mentioned products mainly are Asian countries especially in the Middle East’s region.
The other group products are textile, leather, Persian carpets, and cloths.
Another products group which Iran exports to other countries is this group like carpet, leather, clothes, textile products, shoes, and hand-made carpets. This groups of product export to most Asian countries and the hand-made carpets export to the USA.
Petrochemical group of products.
Bitumen, plastic products, color paint and Resin, petrochemical products, Polymer products, and engine oil that this group of petrochemical products used in most of the Asian countries.
And the last products group includes of mineral products I want to name some of the main bazaars of them such as aluminum sheets, cement and Klinger, building glasses, steel profile, steel, and Iron and copper cathode. Also, this group of products exports to some major Asian countries and especially some Middle East countries.
Countries trading with Iran
Despite the Iran sanction, India persists on trading with Iran and the major parts trading between these two countries do with some middlemen’s who aren’t in control of sanction rules. But unfortunately, in the end, the cost would increase by up to 38%.
India and Iran have trading relation for more than thousand years. The main exports to India include Oil, chemical fertilizer and chemicals. India also exports some Indian tea, cereals, spices, and chemicals.
The Iranian Oil is completely suitable for Indian refineries because Iranian companies give 60 days’ credits in a contract that no other oil distributors such as Saudi Arabia, Iraq, Kuwait, Nigeria, and the USA don’t give much credit to the buyers.
Since Nov of 2018 that the USA quite the Brajam, India was under pressure of stopping trading with Iran and they must choose between Iran and USA.
The main problem of trading between India and Iran is an Iranian bank system collapse. The only Indian bank which was able to trade with Iran was UCO and IDBA in Rupees currency. It seems in today condition is just having mutually beneficial transactions that this kind of transaction is profitable for both countries.
The Chabahar ports of Iran is free of USA sanction and is the important way of trading with India. This island located at the souths parts of Iran with the best access to India. Then this project is important due to the safety reason and economic issues.
Iraq is the other countries which have a strong will to trade with Iran. These two countries have a plane to increase trading up to 20$ billion till 2021.
Also, Iran has several contracts with Iraq for different areas. One of them is establishing the railway between Basrah and Shalamcheh. Also, these two countries decide to ease the process of giving Health Visa. Iran also has the other program of building Industrial zone in Iraq.
Japan trade with Iran without considering the USA sanctions. The Japan ministers said that we continue our partnership. The Japanese companies, traders and institute owners do their job without considering the sanction rules.
They said that we appreciate these partnerships with Iran for our profitability and we will continue this business relationship so powerful.
Foreign active companies in Iran
Before sanction, there were 120 active Germany companies but now about 60th of them have business relationships with Iran.
According to the reports in 2018 Germany had exported Pieces of machinery, different types of machine tools and also electrical products, car’s manufacturing spare parts and medicine.
According to the statistics in the 1970s, Iran was the second major markets of German products and the first markets was the USA for them.
In 2019 Iran had exported some important products to Germany such as Pistachio and nuts and according to the reports Iran also exported fossil fuel, sheep bowel, and skins, Persian carpets, Iron and steel.
Despite Germany, France and Italy were second and third European exporters of goods to Iran which in 2019 the amount of trade between these countries had decreased to half.
In 2015 Britain, France, Germany, USA, China, and Russia participated in signing nuclear agreements, but despite leaving the USA, Europe had insisted on keeping the agreement and they want to keep the trade way with Iran by preventing this country from using nuclear weapons.
The three main world power tries to maintain INSTEX (INSTRUMENT IS SUPPORT OF TRADE EXCHANGE) which it can make able of selling basic commodities such as foods and medicines but still, this approach wasn’t applicable yet.
Some car manufacturer companies were active in Iran and they had car making line in Iran car factories. The car manufacturing companies such as Kia, Renault, Peugeot, Toyota, Hyundai Motor and some other chines car companies. But these days in 2019 they had to leave Iran and stop producing their products here in Iran.
the companies which quite Iran after May 2018
since 8th May of 2018 that Donald Trump quite nuclear agreements and had announced they decide to apply new sanctions against Iran. Many European and Asian companies and Banks had withdrawn partnership with Iran. The main reason was fear of second sanctions of America against non-American companies which didn’t obey the sanctions laws in transacting with Iran. Some of the main companies which left Iran include oil and Energy, car manufacturing, insurance companies, banks, Industries, Shipping, road construction, airplane construction, airlines, and telecommunications.
Dealers roles in trade with Iran
In Iran, some companies are active in trading with foreign companies as a dealer. Import and export goods. At this era, only these companies can revive Iran, because they can sell and purchase products. in this way, there are many problems but this is a shortcut for sanction against Iran.
The dealer companies can ease the way of buying products from European and American countries and some brands that are prohibited from trading with Iran. And in foreign countries some supplier’s active is selling several brands can help to facilitate this pass. The currency exchanger also has the role of transferring money between companies. At this time the banks can’t do financial issues, the currency exchangers can the other substitute way.
In the next article we will explain about Iran oil and gas and refineries, petrochemicals. We will talk about the oil and gas sanction against Iran.