In the Name of Allah
“Iran and the Central Asian Countries”
Dr. Mohammadreza Karbasi Director General
Islamic chamber ICCIM
Workshop on “ Country Partnership Models with Central Asia”
22-23 February 2012
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Unique Transit Situations of Iran
Access to Region`s Markets
Existence of Common Resources
Necessitate the increasing cooperation and convergence in the region among Iran and
Central Asian Countries
The Economic Situation of the Central Asian Countries
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kazakhstanKyrgyzstan Tajikistan TurkmenistanUzbekistan 0
20
40
60
80
100
120
140
GDP of Central Asian Countries
.Country
GDP (2010,
billion us $)
GDP Per Capita
(US $)Major crops
Major industrial;
goodsMajor
mineral
Kazakhstan 148 12401 Cereals, cotton, grape, fruits.etc
Petrochemical, oil, gas, metals, food, machinery
Oil, gas, cool, copper, lead, gold, iron ore, phosphate
Kyrgyzstan 4 2162 Livestock, cotton, potato, tobacco, vegetable, grape
Small textile machinery, meat, cement, gold, electrical
Gold, cool, oil, gas, zinc, mercury,
Tajikistan 5 1907 Cotton, cereals, fruits, grapes, vegetables
Drugs, chemical fertilizes, cement, veg oil, textile
Aluminum, lead, zinc etc
Turkmenistan 27 6597 Cotton, dried fruits and nuts, wheat etc
Textile, petrochemical, oil, gas, food stuffs
Oil, gas, surplur, salt etc
Uzbekistan 37 3022 Cotton, dried fruits and nuts, wheat etc
Textiles, metals, petrochemical
Oil, gas, gold, cooper etc
Iran economic relation with Central Asian Countries
Despite the relative advantage of Iran`s neighborhood
The trade volume between Iran and these countries has always stood low.
Iran`s Import from Central Asian Countries US$ 718 m(2011)
Iran`s Export to Central Asian Countries US$ 348 m(2011)
Volume of transactions of Iran with Central Asian Countries
.
Uzbekistan 14%
Tajikistan18%
Turkmenistan 47%
Kazakhstan17%
Kyrgyzstan4%
Level of Iran's exports and imports to and from each of these countries
.
Uzbekistan
Tajik
istan
Turkm
enistan
Kazakh
stan
Kyrgyzs
tan
050100150200250300350400450
ExportImport
.
Country Selected Goods Category Exporting Countries Exporting Countries in the region
Kazakhstan
Iron ore and its concentrates, chromium ore and its concentrates, silver (coated with either gold or platinum) in raw shape but not compressed, raw gold (including coated with platinum) phosphorus, titanium, frozen fish fillets, copper alloy
Russia, China, poland, Netherlands, Japan, Korea, Ukraine, Germany,UK,Thailand and Switzerland
Kyrgyzstan, Uzbekistan, Iran, Turkey, Pakistan, Azerbaijan
Kyrgyzstan
Gold, apparels, grapes, tomatoes, precious metal ores, cooked and non cocked fruits, parts for machinery and photography optics, multilayer yarns, silver, tobacco and shoes
Russia, China, Taiwan, Ukraine, Germany, US, Australia, Switzerland
Iran, Kazakhstan, Turkmenistan ,and Uzbekistan, Turkey, Pakistan, Azerbaijan, Afghanistan
Tajikistan
Hosiery, aluminum sheets, sawed wood, lather bags and wallets, clay dishes, cotton clothes, kitchen cookware ,hydraulic turbines parts, aero planes and its parts, twisted wires, DC power generators
China, Russia, Canada and Italy, India, US, Belarus, Germany, Poland, Lithuania, Latvia, U.A.E
Iran, Kazakhstan, Uzbekistan, Turkmenistan, Turkey, Pakistan, Azerbaijan
Turkmenistan
Excavation machinery, combines, oil and gas pipes, gas turbines, passenger cars, rotating power generators and convertors, alcohol, synthetic fibers, clothing, agricultural machinery ,fortified catalyzes, oil additives, milk and cream, water steam generators
China, Russia ,Germany Ukraine, France, Brazil, Malaysia, Netherlands, Belgium, U.K, Czech Republic ,U.A.E, Belarus, Malta
Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan , Iran, Turkey, Pakistan, Azerbaijan, Afghanistan
Uzbekistan
Parts of telephone sets or wireless networks, sawn wood, excavation machinery, alternative piston engines, aero plane parts, engine equipped chassis, green tea, multi layer boards, pipes and profiles, parts of the steam turbines, bulldozers, synthetic fibers, axis and wheels
Russia, China, Finland, Germany, Netherlands, Japan, Belgium, u.k, US, Belarus, Check Republic, Estonia, Korea, Italy
Kazakhstan, Kyrgyzstan, Iran, Tajikistan, Turkmenistan, Turkey, Pakistan, Azerbaijan, Afghanistan
Challenges and problems of cooperation with Central Asian Countries:
- lack of a proper banking cooperation and agreements whereas a majority of merchants and businessmen of Central Asia do not utilize the Letter of Credit (L/C) system;
- Difference of the working hours of customs in Iran borders and issues related to delays at the customs offices of Central Asian Countries;
- Limitations relevant to visa issuance for businessmen and merchants particularly the multi entry visas;
- Legal problems and hindrances arising from disputes among businessmen and industrialists and their partners
.
Bilateral trade between Iran and the Central Asian countries
1. Fortification of border markets;
2. Development of bartering transactions;
3. Reinforcement of areas of relative advantage in the Iranian economy;
4. Development of experts of technical and engineering services to Central Asian countries;
.
ECO and Central Asian Countries
the ECO Trade Development Bank (ETDB);
Agreement on Visa Simplification for Businessmen of the ECO member countries;
ECO Trade Agreement (ECOTA);
ECO Transit Trade Framework Agreement (TTFA);
Agreement on Promotion and Protection of Investment (APPI);
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OIC and Central Asian Countries1. Market creation through E.Commerce
2. Joint investment in different projects of Central Asian countries
3. Augmentation of Central Asian private sector collaborations through enabling and activation of Central Asian chambers of commerce
4. Establishment of free trade zones
5. Establishment of joint ventures in the field of road and air transportation;
6. Procurement of facilities to hold specialized exhibitions;
7. Establishing preferential trade tariffs;
8. Utilization of the credit lines and facilities of Islamic Development Bank (IDB).
9- The trend of the conversion of raw materials to finished products in Central Asian countries as a strategy for revenue generation, employment and market expansion.
Conclusion
1. despite the regional and cultural proximity among Central Asian Countries, existence of various common grounds has been neglected by investors and economic operators of the OIC member countries.
2. The OIC member countries can turn the Central Asia into a favorable arena for lucrative regional trade by supporting the private sector.
On one hand:1. Existence of various investment opportunities 2. joint economic collaborations in areas of energy, transportation and trade transaction in the Central Asia.On the other hand:membership of these countries in the Economic Cooperation organization (ECO).
unique platform which should not be omitted by the decision makers of OIC member countries.
Hence in order to realize the objectives of the OIC
A Special Task Force has to be formed
Carry out extensive studies on ways and means of putting into operation plans and strategies of the OIC member chambers
Thanks for your attention
Workshop on “ Country Partnership Models with Central Asia”
22-23 February 2012
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