Baku, Tehran agree in closer cooperation in trade

By Azernews

By Nigar Abbasova

Azerbaijan and Iran, the two strategic partners and neighboring countries, are planning to further develop cooperation in trade.

The issue of deepening cooperation between the two countries was high on agenda during the meeting between Azerbaijan’s Economy Minister Shahin Abdullayev and Iranian Interior Minister Abdolreza Rahmani-Fazli.

Mustafayev, addressing the meeting, said that trade turnover between the two countries recorded a 65-percent growth in the first eight months of the year, mentioning increased interest of Iranian companies in the economy of Azerbaijan.

The minister invited Iranian companies, especially businessmen from the East Azerbaijan and Gilan provinces, to benefit from favorable conditions created in industrial parks and districts in Azerbaijan.

He also mentioned growing interest of Iranian tourists in the country.

Mustafayev hailed Azerbaijan-Iran ties in the spheres of energy, transport, agriculture and healthcare, mentioning the progress in execution of the joint projects.

Rahmani-Fazli, in turn, hailed relations between the two countries, emphasizing the importance of the growing bilateral trade amidst ongoing negative economic processes in the world. He highlighted cooperation opportunities in tourism, information and communication technologies, transport and other areas.

The two countries are currently engaged in the implementation of a number of joint projects including North-South international transportation corridor, construction of a pharmaceutical factory in Azerbaijan and a joint automobile plant in Neftchala Industrial Site.

The transportation sector is one of the main areas of cooperation between Azerbaijan and Iran, as the countries lack a railway link and implement the vast majority of cargo traffic by road transport, which in turn greatly limit the possibilities of development of trade and economic relations and transit potential of the countries.

The North-South railway, which is expected to serve as a bridge to connect the railways of Iran, Azerbaijan and Russia is considered to be of pivotal importance in this regard.

Meanwhile, Azerbaijani delegation will visit Iran in late October to get acquaint with the construction of Rasht-Astara railroad section, which is the main part of the North-South transportation corridor.

Being a part of the North-South Transport Corridor, the Rasht-Astara railway is constructed with a view to integrate the main transportation lines of Azerbaijan, Iran and Russia. The railway is expected to facilitate and expedite exchange of good and trade between the countries. The volume of freight which is expected to be initially transported ranges from three to five million tons per year and rise up to 10-12 million tons in the future, according to preliminary estimates.

Also, a groundbreaking ceremony for the Azerbaijani-Iranian car plant was held in Azerbaijan’s Neftchala industrial district in August 2016. The plant, which is a joint project of Azerbaijan’s AzEuroCar LLC and Iran’s giant automaker, Iran Khodro is expected to be constructed by May 2017, while construction operations are being carried out successfully.

Moreover, Iranian companies are planning to build a pharmaceutical plant in Azerbaijan’s Pirallahi settlement. The Iranian side is currently in talks with Azerbaijan’s Az?rsun Holding Company.  

The trade turnover between Azerbaijan and Iran amounted to $105.7 million in January-July 2016, more than $77 million of which accounted for imports from Iran, according to Azerbaijan’s State Customs Committee. Azerbaijan's exports to Iran almost doubled to $14.4 million in the first quarter of 2016, while imports increased from $19.4 million in 2015 to $27 million in 2016.