TPO chief elaborates on Iran’s strategic trade policies

May 16, 2016

TEHRAN- Rouhani government is resolved to provide activists in Iranian state-run and private sectors with a new and endogenous business environment, in which banks set proper cushions for export-oriented production.

In an interview with IRIB news, Valiollah Afkhamirad, the head of Iran’s Trade Promotion Organization (TPO) explained the incumbent Iranian government’s strategic trade policies embracing all tactics and programs of the country’s ministry of industry to hit the pre-planned targets in domestic and international trade sector and also to improve domestic business environment by the end of the current Iranian calendar year of 1395 (ends on March 20, 2017):

Improving the business environment

In a bid to lure Iranian economic activists, Rouhani government seeks to improve business environment; in a way that entering domestic production sector and making investments in it would bring Iranian activities more profit than saving their financial assets in banks in a hope for receiving interests.

Significant role of banks

After the implementation of the nuclear deal with P5+1 in January a proper bed has been set for cooperation between Iranian banks and their foreign counterparts. Getting re-connected to international brokerage relations, Iranian banks can assist economic activists compete their foreign rivals through reducing the costs of money transfer and soothing investment procedures.

Making endeavors to forge bonds with prominent foreign traders

Unfortunately, the private sector has a long way to meet all the required structural and infrastructure standards to have negotiations about imports, exports, and investments with eminent foreign trade companies in large scales.

Iranian private companies should create departments specialized in conducting negotiations with foreign business companies and marketing to become able to open their branches and after-sale offices in the determined countries.

Marketing need for boosting exports

Iranian private sector should take advantage of professional marketers, whether Iranian or foreigner, to help them compete foreign brands in the international market.

Deregulation

Removing or reducing state regulations would improve Iran’s business with the world, since impeding commercial rules increase the transaction costs as well as their time duration.

Eliminating bureaucratic barriers to ease trade

Major steps have been taken to cut cumbersome bureaucracy to facilitate both imports and exports, including setting up “sabtaresh” website, where the applicants can register their orders for imports.

Equal trade opportunities for every one

No individual or entity is determined by the government to keep either imports or exports of specified goods exclusively.

Government backs leading exporters

Leading and experienced exporters would be provided with incentives to help them find their proper destination markets and to make durable transactions with their foreign partners.

Adjusting luxury imports

Imports of luxury goods are regulated via setting tariffs.

Import tariffs on 7,000 luxury goods doubled

The government has levied 200-percent tariffs on 7,000 luxury goods and plans to consume the earned income on job creation and investments in industry, mining, and agriculture sector.

The government can make the exports volume continually surpass that of imports via controlling the price of intermediate materials and capital goods, supporting and facilitating investments in production sector, and permitting exporters to consume their income in a comparative domestic market.

Knowledge transfer high priority in transactions with foreigners

Iran should not be converted into a market for foreign brands, instead, for famous foreign brands to make joint investments here and have Iranians acquainted with the latest technologies.

HJ/MA

 

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