In the Name of Allah
“Iran
and the Central
Asian Countries”
Dr. Mohammadreza Karbasi
Director General
Islamic chamber ICCIM
Workshop
on “ Country Partnership Models with
Central Asia”
.
Existence of Common
Resources
.
Necessitate the increasing cooperation and
convergence in the region among Iran and
Central Asian Countries
Access to Region`s Markets
Unique Transit Situations of
Iran
The Economic Situation of the Central
Asian Countries
GDP of Central Asian Countries
140
120
100
80
.
60
40
20
0
Uzbekistan
Turkmenistan
Tajikistan
Kyrgyzstan
kazakhstan
.
Country
GDP
(2010,
billion us $)
GDP
Per Capita
Major crops
Major
industrial;
goods
(US $)
Major
mineral
Kazakhstan
148
12401
Cereals, cotton, grape,
fruits.etc
Petrochemical,
oil, gas, metals,
food, machinery
Oil, gas,
cool, copper,
lead, gold,
iron ore,
phosphate
Kyrgyzstan
4
2162
Livestock, cotton,
potato, tobacco,
vegetable, grape
Small textile
machinery,
meat, cement,
gold, electrical
Gold, cool,
oil, gas, zinc,
mercury,
Tajikistan
5
1907
Cotton, cereals, fruits,
grapes, vegetables
Drugs, chemical
fertilizes,
cement, veg oil,
textile
Aluminum,
lead, zinc etc
Turkmenistan
27
6597
Cotton, dried fruits
and nuts, wheat etc
Textile,
petrochemical,
oil, gas, food
stuffs
Oil, gas,
surplur, salt
etc
Uzbekistan
37
3022
Cotton, dried fruits
and nuts, wheat etc
Textiles, metals,
petrochemical
Oil, gas,
gold, cooper
etc
Iran economic relation with Central
Asian Countries
Despite the relative advantage of Iran`s
neighborhood
The trade volume between Iran and these countries
has always stood low.
Iran`s Import from Central Asian Countries
US$ 718 m(2011)
Iran`s Export to Central Asian Countries
US$ 348 m(2011)
Volume of transactions of Iran with
Central Asian Countries
.
Kyrgyzstan
4%
Uzbekistan
14%
Kazakhstan
17%
Tajikistan
18%
Turkmenistan
47%
Level of Iran's exports and imports to and
from each of these countries
.
450
400
350
300
250
200
Export
150
Import
100
50
0
Country
Kazakhstan
Kyrgyzstan
Tajikistan
Selected Goods Category
Exporting Countries
Iron ore and its concentrates, chromium ore and its
concentrates, silver (coated with either gold or platinum)
in raw shape but not compressed, raw gold (including
coated with platinum) phosphorus, titanium, frozen fish
fillets, copper alloy
Exporting Countries
in the region
Russia,
China,
poland, Kyrgyzstan, Uzbekistan, Iran,
Netherlands,
Japan,
Korea, Turkey, Pakistan, Azerbaijan
Ukraine, Germany,UK,Thailand and
Switzerland
Gold, apparels, grapes, tomatoes, precious metal ores, Russia, China, Taiwan, Ukraine, Iran, Kazakhstan,
cooked and non cocked fruits, parts for machinery and Germany,
US,
Australia, Turkmenistan ,and
photography optics, multilayer yarns, silver, tobacco and Switzerland
Uzbekistan, Turkey, Pakistan,
shoes
Azerbaijan, Afghanistan
Hosiery, aluminum sheets, sawed wood, lather bags and China, Russia, Canada and Italy, Iran, Kazakhstan, Uzbekistan,
wallets, clay dishes, cotton clothes, kitchen cookware India,
US, Belarus, Germany, Turkmenistan, Turkey,
,hydraulic turbines parts, aero planes and its parts, Poland, Lithuania, Latvia, U.A.E
Pakistan, Azerbaijan
twisted wires, DC power generators
.
Excavation machinery, combines, oil and gas pipes, gas
turbines, passenger cars, rotating power generators and
convertors, alcohol, synthetic fibers, clothing, agricultural
Turkmenistan machinery ,fortified catalyzes, oil additives, milk and
cream, water steam generators
China, Russia ,Germany Ukraine,
France,
Brazil,
Malaysia,
Netherlands, Belgium, U.K, Czech
Republic ,U.A.E, Belarus, Malta
Kazakhstan, Kyrgyzstan,
Tajikistan, Uzbekistan , Iran,
Turkey, Pakistan, Azerbaijan,
Afghanistan
Parts of telephone sets or wireless networks, sawn wood,
excavation machinery, alternative piston engines, aero
plane parts, engine equipped chassis, green tea, multi
layer boards, pipes and profiles, parts of the steam
turbines, bulldozers, synthetic fibers, axis and wheels
Russia, China, Finland, Germany,
Netherlands, Japan, Belgium, u.k,
US, Belarus, Check
Republic,
Estonia, Korea, Italy
Kazakhstan, Kyrgyzstan, Iran,
Tajikistan, Turkmenistan,
Turkey, Pakistan, Azerbaijan,
Afghanistan
Uzbekistan
Challenges and problems of cooperation with
Central Asian Countries:
- lack of a proper banking cooperation and agreements whereas
a majority of merchants and businessmen of Central Asia do not
utilize the Letter of Credit (L/C) system;
- Difference of the working hours of customs in Iran borders and
issues related to delays at the customs offices of Central Asian
Countries;
- Limitations relevant to visa issuance for businessmen and
merchants particularly the multi entry visas;
- Legal problems and hindrances arising from disputes among
businessmen and industrialists and their partners
.
Bilateral trade between Iran and
the Central Asian countries
1. Fortification of border markets;
2. Development of bartering transactions;
3. Reinforcement of areas of relative advantage in the
Iranian economy;
4. Development of experts of technical and engineering
services to Central Asian countries;
ECO and Central Asian Countries
the ECO Trade Development Bank (ETDB);
Agreement on Visa Simplification for Businessmen of the ECO member
countries;
.
ECO Trade Agreement (ECOTA);
ECO Transit Trade Framework Agreement (TTFA);
Agreement on Promotion and Protection of Investment (APPI);
OIC and Central Asian Countries
1. Market creation through E.Commerce
2. Joint investment in different projects of Central Asian countries
3. Augmentation of Central Asian private sector collaborations through enabling
and activation of Central Asian chambers of commerce
4. Establishment of free trade zones
.
5. Establishment of joint ventures in the field of road and air transportation;
6. Procurement of facilities to hold specialized exhibitions;
7. Establishing preferential trade tariffs;
8. Utilization of the credit lines and facilities of Islamic Development Bank (IDB).
9- The trend of the conversion of raw materials to finished products in Central
Asian countries as a strategy for revenue generation, employment and market
expansion.
Conclusion
1. despite the regional and cultural proximity
among Central Asian Countries, existence of
various common grounds has been neglected
by investors and economic operators of the
OIC member countries.
2. The OIC member countries can turn the
Central Asia into a favorable arena for lucrative
regional trade by supporting the private sector.
On one hand:
1. Existence of various investment opportunities
2. joint economic collaborations in areas of energy,
transportation and trade transaction in the Central
Asia.
On the other hand:
membership of these countries in the Economic
Cooperation organization (ECO).
unique platform which should not be omitted by the
decision makers of OIC member countries.
Hence in order to realize the objectives of the OIC
A Special Task Force has to be formed
Carry out extensive studies on ways and means of
putting into operation plans and strategies of the OIC
member chambers
Thanks for your attention
Workshop
on “ Country Partnership Models with
Central Asia”
22-23 February 2012