Factors affecting the decline of foreign trade

Factors affecting the decline of foreign trade
  • 2020-10-04
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President of the Export Confederation of Iran: By applying the policy of export protection, the backwardness of exports in the second half of this year should be compensated.

According to the Iran International Stone Exhibition, Mohammad Lahouti said about the situation of our country's 6-month trade this year: "What the country's trade statistics show in the first 6 months of this year shows that the country's trade conditions are still similar to the beginning of this year and at the time The closure of the borders is due to the corona, so the country's trade situation has not yet returned to the conditions before the outbreak of the corona virus.

The head of the Iranian Export Confederation added: "The second point that can be deduced from the country's foreign trade statistics is that the country's export basket has changed, so that gasoline exports have been added to the country's export basket, while previously exports in this We had no background.

He said: "The point in the published statistics of foreign trade is that accurate information about other export goods has not been published, in other words, accurate information about the decrease or increase in exports of other goods has not been published."

Referring to the decrease in foreign trade in the first six months of this year compared to the same period last year, Lahouti said: "There are several reasons for the decrease in the country's foreign trade, the main factor being the impact of the corona on the global economy."

Lahouti said: "The economic effects of the corona in the world have also reduced demand, so that people around the world prefer to reduce costs rather than buy, so it is natural that the decline in demand will be based on this."

Referring to the decrease in the presence of tourists in countries such as Iraq and the UAE, he said: "It is natural that the demand for imports of goods in these countries decreases.

Lahouti said: "The corona epidemic has affected the global economy after human health, and the flood of unemployment in different countries of the world has reduced the demand and purchasing power of the people."

The head of the Iranian Export Confederation added: "In this situation, since Iran is an exporter of intermediate and semi-manufactured products, so our exports, in other words, our foreign trade, have also decreased due to the decrease in global demand."

Referring to other influential factors in reducing the country's foreign trade, he said: The four-month suspension of cargo ships of the Islamic Republic of Iran to China has also had an impact on reducing the country's trade during the first six months of this year.

Expressing hope for compensating for the decrease in trade in the second half of this year, Lahouti added: "According to the published statistics of foreign trade, in order to compensate for the decrease in exports in the first half of the year, export protection policies should be more prominent in the second half of this year." And increase interaction with exporters.

He said: "It is also necessary to provide export incentives and facilities to meet the foreign exchange obligation to facilitate export conditions for exporters to compensate for the decline in exports."

According to the report, Iran's trade with foreign countries in the first six months of this year reached 30 billion and 349 million dollars and 62 million and 842 thousand tons.

 The share of definitive exports of non-oil goods, with the exception of crude oil, fuel oil and kerosene, as well as excluding exports from the luggage trade during this period amounted to 46 million and 318 thousand tons worth $ 13 billion and 566 million, with gasoline still leading exports. The country is in the first half of this year, and polyethylene, film grade, methanol and urea were the country's top four exports after gasoline.

 Imports of goods from foreign countries during the first six months of this year reached 16 million 524 thousand tons worth 16 billion 783 million dollars.