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”

22-23 February 2012

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Unique Transit Situations of Iran

Access to Region`s Markets

Existence of Common Resources

Necessitate the increasing cooperation and convergence in the region among Iran and

Central Asian Countries

The Economic Situation of the Central Asian Countries

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kazakhstanKyrgyzstan Tajikistan TurkmenistanUzbekistan 0

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GDP of Central Asian Countries

.Country

GDP (2010,

billion us $)

GDP Per Capita

(US $)Major crops

Major industrial;

goodsMajor

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

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Uzbekistan 14%

Tajikistan18%

Turkmenistan 47%

Kazakhstan17%

Kyrgyzstan4%

Level of Iran's exports and imports to and from each of these countries

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Uzbekis

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Turkm

enistan

Kazakh

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Kyrgyzs

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100

150

200

250

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ExportImport

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Country Selected Goods Category Exporting Countries Exporting Countries in the region

Kazakhstan

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

Russia, China, poland, Netherlands, Japan, Korea, Ukraine, Germany,UK,Thailand and Switzerland

Kyrgyzstan, Uzbekistan, Iran, Turkey, Pakistan, Azerbaijan

Kyrgyzstan

Gold, apparels, grapes, tomatoes, precious metal ores, cooked and non cocked fruits, parts for machinery and photography optics, multilayer yarns, silver, tobacco and shoes

Russia, China, Taiwan, Ukraine, Germany, US, Australia, Switzerland

Iran, Kazakhstan, Turkmenistan ,and Uzbekistan, Turkey, Pakistan, Azerbaijan, Afghanistan

Tajikistan

Hosiery, aluminum sheets, sawed wood, lather bags and wallets, clay dishes, cotton clothes, kitchen cookware ,hydraulic turbines parts, aero planes and its parts, twisted wires, DC power generators

China, Russia, Canada and Italy, India, US, Belarus, Germany, Poland, Lithuania, Latvia, U.A.E

Iran, Kazakhstan, Uzbekistan, Turkmenistan, Turkey, Pakistan, Azerbaijan

Turkmenistan

Excavation machinery, combines, oil and gas pipes, gas turbines, passenger cars, rotating power generators and convertors, alcohol, synthetic fibers, clothing, agricultural 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

Uzbekistan

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

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

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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;

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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);

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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