Transfer of trade corridors from south to north; Iran's new trade map unveiled
TEHRAN- The comprehensive plan to change the country's trade corridors, aimed at countering the economic siege and gradually shifting trade from southern ports to northern ports and land borders, has entered the implementation phase.
According to IRNA citing the Ministry of Economy, following the recent imposed war and the intensification of the economic siege – especially the closure of southern waterways by the United States – the comprehensive plan to change the country's trade corridors is being operationally implemented with the goal of replacing imports and managing siege conditions.
One of the most important measures taken since the start of the Ramadan War has been removing obstacles related to the clearance and transfer of goods from customs sites. These policies have reduced the clearance time for imports of essential goods from about 17 days to 9 days.
According to the Deputy for Economic Policy of the Ministry of Economic Affairs and Finance, following the ministry's series of "360 Monitoring" reports, a comprehensive diagnosis of the status of essential goods imports during the war period has been conducted, which shows a significant decrease in the volume of these goods being unloaded at the country's entry points.
After the results of the reports were announced to officials and simultaneously with the beginning of the blockade of southern waterways, specialized working groups have been formed in vital areas including health-related items, essential goods, and inputs for industrial production. The main objectives of these working groups are: determining a replacement import map for vital goods, identifying import capacity from each route and country, enumerating substitution limitations in short-term, medium-term, and long-term horizons, determining the requirements for achieving goals, and facilitating imports through new corridors.
A similar approach is also being pursued for export procedures. A package of necessary measures to maintain the country's main export markets, with an emphasis on supporting damaged production units, is in the final stages of preparation and approval.
* Decentralization and delegation of authority to provinces
One of the key axes of the plan is decentralization and delegation of authority to provincial working groups. The program to transfer corridors from southern ports to northern ports and land borders is being pursued partly at the national level by the national working group and partly by provincial working groups chaired by governors. Within this framework, coordinated border management and the removal of border procedure obstacles have been emphasized.
* Analysis of logistical capacities of alternative corridors
Actions in determining alternative corridors have mainly focused on the import of essential goods, and three main constraints have been considered: the supply of goods by the counterpart country, the logistical capacity of neighboring or transit countries, and the capacity of entry points at land borders (rail and road) and northern ports of the country.
* Inter-agency convergence and the new trade map
In this regard, numerous expert meetings have been held with relevant organizations and traders. Also, the ministries of Transport and Urban Development, Agriculture, Industry, Mining and Trade, the Planning and Budget Organization, and the Ministry of Foreign Affairs have held numerous meetings at the levels of experts, deputies, and ministers, and have formulated the country's new trade map based on available borders and entry points.
* Customs transformation and through transportation of goods
To reduce border traffic and increase trade volume, the implementation of a "through transportation" mechanism is on the agenda of customs offices. Accordingly, the border will merely be a point of passage for goods; imported goods can be declared before arrival, and exported goods are declared from customs offices inside the country. This change will reduce the accumulation of goods at customs.
* Economic incentives for private sector
In order to satisfy traders and entrepreneurs, incentives in the form of discounts on duties, customs fees, and other supports have been considered.
This plan is currently in the operational implementation phase, and coordinated national and provincial efforts to transfer corridors and stabilize the country's trade continue.
Meanwhile, President Pezeshkian emphasizing the need to maintain market stability and prevent price volatility, has ordered the acceleration of activating alternative import routes and maximum use of neighboring countries' capacities.
During a meeting, the latest status of supply and import of essential goods, medicine, and needed inputs, considering restrictions imposed on some southern routes, was carefully reviewed, and executive bodies presented reports on actions taken to manage the situation and create alternative routes.
According to a report from the ministers, as a result of negotiations and coordination with neighboring countries, a significant capacity of land border crossings and alternative transport routes has been activated and strengthened to facilitate and increase imports of goods, and the process of importing essential goods into the country is being continuously pursued.
At the meeting, the President, stressing the need for intelligent market management and preventing any price volatility, tasked the Ministry of Agriculture with minimizing the possible effects of restrictions on some entry points on the prices of essential goods and medicine through careful, continuous, and forward-looking planning.
The President also emphasized the need to maximize the use of the country's northern ports, develop alternative trade corridors, and utilize the capacity of neighboring countries – including Pakistan, Russia, and Azerbaijan – for supplying and importing certain needed items, and called for accelerating the implementation of relevant agreements in this area.
Pezeshkian also stressed the need to guide and coordinate private sector actors and stakeholders in using alternative transport and supply routes, and called for maximum synergy between the government and the private sector in managing the current situation.
During the meeting, the feasibility of importing medicine and certain critical items from China via rail routes was examined, and the need to strengthen multimodal transport infrastructure and increase the resilience of the country's supply chain was emphasized.
In another part of his remarks, the President emphasized the need for the Ministry of Foreign Affairs to further activate the country's economic diplomacy capacity, stating: "All political, economic, and regional capacities of the country must be employed to facilitate the purchase, transport, customs clearance, and entry of essential goods and medicine so that no interruption occurs in meeting the people's needs."
Pezeshkian also made clear that if necessary, he would personally negotiate with the leaders of neighboring countries and regional partners to remove any potential obstacles to the supply and transport of essential goods and medicine as quickly as possible.
EF/MA
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