The country's exports fell by 20 percent

The country's exports fell by 20 percent
  • 2020-04-18
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Assessing the latest situation of exports and imports and the impact of the Corona virus on trade, the Deputy Minister and Director General of the Trade Development Organization of Iran said: It has decreased by seven percent. Also, according to the World Trade Organization in 2020, international trade will decline from thirteen to thirty-two percent.

According to the Iran International Stone Fair, Hamid Zadboom noted that international trade and the global economy have been affected by the outbreak of the corona virus, adding that the closure of factories, the ban on passenger and driver traffic to transport cargo and the imposition of restrictions and bans Exports from some countries in terms of export and import regulations or non-traffic regulations are among the most important reasons for the decline in global trade volume.

Emphasizing that the country's borders are monitored on a daily basis, he added: "About 60% of Iran's exports go to 15 neighboring countries. We have land borders with seven countries and water borders with the rest." We are reviewing the daily report of the Trade Development Organization of Iran.

The Deputy Minister and Director General of the Trade Development Organization of Iran stated that part of the decrease in trade and exports in this situation is obvious, he continued: According to the Secretary General of the World Trade Organization, in the most optimistic situation thirteen percent and in the most pessimistic situation There was a 2% reduction. Our country's exports have also decreased by 20% under the influence of Corona.

 Imports were less affected by Corona than exports

Regarding the impact of Corona on the country's imports, Zadboom said: "Our country's imports, which include raw materials and basic and intermediate goods, amounted to $ 8 billion from the beginning of February to the 15th of Farvardin, which is not much different from the same period last year." The reason most of the ports are less affected by corona damage.

The latest status of borders

Regarding the latest situation on the country's borders, the Deputy Minister of Industry and the Director General of the Trade Development Organization of Iran said that trade with some neighboring countries is going well, adding that the northern borders are with Russia and Kazakhstan, the southern borders with Oman and Qatar and some countries. It is far more active, and consultations are underway to expand trade with Kuwait. We are also developing trade with Qatar beyond agricultural goods.

He added: "Currently, Iran's border with Afghanistan is open for the transport of goods and we have three active borders with Iraqi Kurdistan." The borders of the Republic of Azerbaijan and Armenia are also open for transit to Russia and transportation by truck. Also, trade exchanges with Turkey through railways are underway.

Allocate export incentives with priority to commercial infrastructure

Zadboom stated that every year a decision is made on export incentives in accordance with the budget, and said: "This year, six hundred billion tomans were considered for export incentives, in addition to Rial resources from the National Development Fund."

He added: "Due to budget constraints, it is necessary to identify the main bottlenecks and focus on the three points of borders, production centers and ports, to examine the need for these infrastructures to the budget."

Zadboom said: "For example, there are three active borders on the Iraqi border from nine borders. Naturally, traffic is created in this situation and it is necessary to strengthen the export infrastructure." In the case of agricultural products, which can also be exported in this sector, it is necessary to set up transportation lines, build cold storages at the borders, build warehouses and quarantine locations, and examine what problems the infrastructure has at the borders, production centers or ports. To remove the obstacles.

 He continued: "Ninety percent of the budget for export incentives can be allocated to these sectors, and cheap loans can be provided to people who work in these infrastructures, and ten percent of the budget can be allocated to other incentives."

The Deputy Minister and Director General of the Trade Development Organization of Iran added: "I suggest forming the Export Development Support Fund and charging it from revenues such as customs duties so that we can continuously develop the country's exports."

"This year, in particular, we have been able to move exporters to these infrastructures," Zadboom said. "Helping exporters in the transportation sector can be a big stimulus for export development."

In the end, the Deputy Minister of Industry pointed to the problems in the transportation sector and continued: "For example, although the price of fuel has decreased, but the price of transportation has not decreased, and in this regard, better conditions should be created for exporters."

* ILNA