Sep 16, 2019, 7:03 PM
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Iran, Turkey and need for political, economic integration

Tehran, Sept 16, IRNA - Iran and Turkey are taking steps to convergence with the establishment of joint economic commissions in the shadow of US economic terrorism and under tightening Washington sanctions against Tehran, and therefore seek to implement a financial mechanism for economic and political exchanges soothe necessity of convergence is felt more than ever at the present time.

Relations between the Islamic Republic of Iran and the Republic of Turkey from a political, commercial and economic point of view have entered a new phase in recent years and have undergone a growing process, with the two neighboring countries’ ties now in many respects are developing and the need to continue and expand it is now felt more than ever.

In spite of the political will of the leaders of the two countries of Iran and Turkey to improve relations, it should be noted that today the Islamic Republic has been subject to the most severe sanctions in history by US President Trump and this has led to problems in cooperation and goals of Ankara and Tehran.

Iranian and Turkish officials have repeatedly stated that they are determined to establish a joint bank, bilateral trade and business without the need for the US dollar and achieve sustainable development in economic relations between the two countries.

Iran and Turkey, with targeting a $30 billion trade ties, have broad economic and trade ties, and the two sides have pledged to develop ties and achieve this goal, although the volume of economic ties between Tehran and Ankara is now less than one-third of that figure.

Although the current volume of trade between the two countries is favorable under current circumstances, it is well below the $30 billion envisaged target, and we hope that in the future the volume of trade will increase further in the light of the mutual potential of the two countries.

With President Rouhani's visit to Ankara to attend the trilateral summit of Iran, Russia and Turkey on Monday, the 27th session of the two countries' joint economic committees will be held tomorrow and the latest economic and financial trade and economic, banking relations between Tehran and Ankara will be discussed and areas of cooperation in new areas between the two sides will be reviewed and agreements between Iran and Turkey will be signed.

The secretary of the Iran-Turkey Joint Economic Commission noted the political determination between the leaders of the two countries to promote bilateral relations, and said that the issue of using national currencies in trade exchanges and necessary measures to make this matter operational in the government is underway.

Bahman Hosseinpour pointed to an increase in the number of preferential tariffs between Iran and Turkey, saying that the number of preferential tariffs between Iran and Turkey has been modest in the past, and in the new period of activities of the Iran-Turkey Joint Economic Commission and with the expert discussions and negotiations conducted with the Turkish side, it has reached the level of 1301 items, the agreement of which will be signed soon by the authorities of the two countries, and thus can speak of more than threefold growth in this area.

He pointed to the obstacles and difficulties facing the two countries' businessmen and said that one of the obstacles to the economic and trade cooperation between Iran and Turkey was the differences between the Iranian and Turkish businessmen at some point. It caused the trade and economic cooperation between the parties to be stopped and sometimes affected.

The secretary of the Iran-Turkey Joint Economic Commission said that during this period, there have been some measures to solve this problem, including the formation of a business dispute resolution committee consisting of chambers of commerce and officials of the two countries, which meets once every three months to deal with any dispute.

Turkey has been one of the largest buyers of Iranian energy products, including electricity, oil and gas, said the secretary of the Iran-Turkey Joint Economic Commission on the status of Iran's oil purchase. On the issue of electricity there is not a dispute between Iran and Turkey, but a dispute with the Turkish contractor, which is one of the issues being discussed in the energy commission of the two countries' joint economic commission.

Hosseinpour added that Iran and Turkey have agreements over the past years on the gas issue, but the issue of bank sanctions and the issue of returning revenues and selling it have led to some problems that "we hope will be resolved".

Commenting on the prospect of achieving $30 billion a year in business relations, he said that it is certainly possible to achieve this volume of relations between Iran and Turkey and we must not forget that achieving such a perspective is not possible overnight. Keep in mind that Iran is under the most severe sanctions.

Hosseinpour stressed that the capacity for cooperation between the two countries is much larger than the size of the current relationship, and that with the cooperation in diverse fields could reach more than $ 30 billion trade a year.

It must be acknowledged that Iran and Turkey have a large industrial, commercial and economic capacity that remains largely untouched, and that the potential of the two countries must become viable, in the meantime holding a summit and a joint Iran-Turkey Economic Commission to make acquainted with the entrepreneurs of the two countries can be effective in establishing business relationships with the two countries' private sector initiatives.

The 27th meeting of the Iran-Turkey Joint Economic Commission will be held on September 17-18 with participation of public and private sectors in the Chankaya Ankara complex.

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