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FTZs

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Will Replacement Work?
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The concept of ‘Free Trade Zones’ in Iran largely dates back to the summer of 1992 when the then president Hashemi Rafsanjani assigned Morteza Alviri to set up what is now called the High Council of Free Trade/ Industrial Zones. In all fairness, Alviri faced back-breaking challenges in introducing free trade zones that were completely unknown outside the country, let alone promoting investment in them.
When Alviri was appointed as Tehran Mayor in 1999, the job was left to Hussein Nasiri, a former head of the Islamic Republic News Agency (IRNA) who holds a B.Sc. in mechanical engineering and an M.A. in political science.
After months of rumors around replacement of the managing directors in charge of Kish, Qeshm and Chabahar, three main free zones of Iran, President Khatami recently appointed three new executives as managing directors of organizations that control these zones. Dr. Hussein Qassemi replaced Mohammad-Reza Yazdanpanah in Kish, Seyed-Fakhreddin Anvaar replaced Behrooz Boushehri in Qeshm and Mohammd-Taghi Salehi replaced Syavosh Samie in Chabahar.
The replacement took place while these zones have spent the past 6 years trying to fully establish a much-needed infrastructure and make themselves known. Iranians and potential foreign investors are waiting to see tangible results of these replacements. The effects of these appointments may not be much different from the appointment of Nasiri himself as the Secretary of the High Council of Free Trade/Industrial Zones.
Following are some brief statements by Hussein Nasiri on the status and growth of Iranian FTZs:

The High Council of Free Trade/Industrial Zones will reconsider many of the previous measures in greater support of Iranian free zones

Free trade zones of Iran should not be referred to as ‘areas’, but as ‘perspectives’. This is simply due to the fact that they have been established with a view to the future. The infrastructure of FTZs is pretty much built and rules and regulations are now more transparent.
Iranian FTZs are not in desperate need of an immense development. Their only requirement is elimination of hurdles which impede their growth. A collective agreement on the capabilities of FTZs is taking shape at the top level of the state. This won’t be an administrative success, but an accomplishment owing to the precious efforts of all those who have so far worked hard for the prosperity of FTZs.
FTZs enjoy undeniable advantages in terms of trade, agriculture, tourism, fishery, industry and transit of cargoes.
However, growth of Iran’s free trade/industrial zones is proportionate to the country’s social and cultural progress. FTZs are in need of support and constructive criticism. They should be given the opportunity for growth free of rent-seeking and inappropriate interpretation of laws. A lack of vision in supporting the Iranian free zones resulted in the growth of some other free zones overseas. The High Council of Free Trade/Industrial Zones will reconsider many of the previous measures in greater support of Iranian free zones.