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Two More Years

Ali Akbar Taheri, Managing Director, SAPCO

Considering the process of globalization and that Iran will sooner or later join the World Trade Organization, prohibiting the import of cars would not be possible in the long run. We should not, however, take hasty actions in this respect in the short run.
In view of the significance attached to the Iranian automotive industry and taking into account its current status, this industry requires rational, strategic and long-term support. A number of points may be suggested for the compilation of a final mechanism for imports. I believe the current process should continue for at least two more years.
To make competition between domestic and foreign auto manufacturers feasible, the ground should be prepared for cooperation between both of these manufacturers with the aim of securing a foreign exchange balance and transfer of technology. In this way, competition may be created among domestic auto manufacturers in a number of areas including: cooperation with major international auto manufacturers, increasing the exports of parts or vehicles, increasing the number of real contracts for technology transfer and increasing the domestic production of parts with the aim of exports.
After securing these conditions, auto imports may be liberalized on a stage-by-stage basis. Of course, the liberalization should be restricted in order to protect national interests.