Tehran - The Australian business delegation led by Mark Vaile, minister for trade, in conjunction with the 9th Iran-Australia Joint Ministerial Commission met with their Iranian counterparts at the invitation of the Head of Iran Chamber of Commerce, Industries and Mines (ICCIM), Alinaqi Khamoushi here on Wednesday.

Present at the meeting were Jeremy Newman, Australian ambassador to Tehran; Geoffrey Rea, senior trade commissioner and counselor; Craig Banks, trade commissioner and various business leaders representing companies from Australia and Iran.

Khamoushi referred to the Third Five-Year Economic Development Plan and reminded delegates about recent economic reforms undertaken by the government in Iran. He specifically mentioned the new investment law guaranteeing repatriation of funds, reform of the tax regime with top rate tax reduced to 25 percent (the lowest among developing nations), and the establishment of a single rate for the Iranian rial against other foreign currencies.

He highlighted Iran's unique position as the gateway to markets in Commonwealth of Independent States (CIS). Explaining the huge potential in various industrial and agricultural sectors in Iran including oil and gas, and mining Khamoushi asked for promotion of bilateral trade and investment. Vaile elaborated on the good performance of the Australian economy saying that it is open and dynamic with very few impediments. It is achieving a rate of growth on par with the best in the industrialized world. To this end, he declared "We are continually implementing economic reforms and looking for new trading opportunities to sustain it. Top rate tax in Australia has been reduced to 30 percent and currently 80 percent of Australians pay at this rate."

He mentioned about the efficiency achieved in cargo handling at the waterfronts in his country.

Vaile said it was one of three countries participating in the IMF loan package, offered to three of the South East Asian countries to help them recover from the financial crisis experienced back in 1997. He also added that Australia is heavily involved in joint partnerships, trade, and business within Asia and Europe.

He told delegates that Iran has been a long-standing and valued trading partner with bilateral trade exceeding AUD$770 million, last year. Trade with Iran comprises agricultural commodities, manufacturing, technology and services sectors. Vaile called for building on existing ties and forging new commercial relationships. He encouraged the business communities from both sides to further develop commercial links.

Speaking to John Arnold, manager of Detpak Pty Ltd, representing one of the businesses among the Australian delegation, he expressed his company's readiness to forge ties with Iranian companies to help solve their packaging problems and bring them up to high standards.

Detmold Packaging is the leading paper-packaging specialist in Australia and Asia, enjoying a reputation as providers of quality solutions for packaging problems, encompassing a QSE approach.

It has accumulated 50 years of experience in this field.

The Australian business delegation later met with Mahmoud Hojjati, minister of Agricultural Jihad where they signed several MOU's. They called for the follow-up of agreements reached at the 8th joint economic commission, and diversification in bilateral trade and cooperation. They also agreed on agricultural, industrial, energy, and services sector cooperation while stressing more active participation of the private sector in bilateral trade. Hojjatti said Iran-Australia trade for over half a century, is limited to one way purchase of agricultural products from Australia. He declared "In the 9th joint economic commission, we reached agreement to balance our trade gap."

In turn, Vale mentioned that Australia's economy is open to Iranian investors and businessmen. He welcomed the promotion of bilateral trade, commercial and mutual investments in both Iran and Australia. His assessment of the joint meeting was positive, adding that his country would build an agricultural research center in Iran worth $70m.

In reply to a question by Tehran Times, Vaile said he did not identify any restrictions or obstacles standing in the way of mutual cooperation, in discussions with his Iranian Counterparts. He mentioned that both parties emphasized increased efforts to promote two-way trade and strengthening commercial links.