Turkey is ready to cooperate with Iran for the supply of technical and engineering services for iron and steel industries.

Turkey’s Minister of Industry and Trade Ali Coskun came to Tehran heading a 60-member commercial delegation comprising Turkish businesspeople and industrialists, to take part in the seventh conference of the International Business Forum (IBF).

Before his departure he explained the relations between the two countries, and stated that in the modern world, economic and commercial relations between private sectors and traders played a crucial role in determining bilateral ties between countries, and being aware of this; Turkey has given priority to developing economic and commercial cooperation with neighboring countries.

He noted that the volume of the two countries’ trade exchanges took an upturn after 1998, saying that during the past year the volume of Iran-Turkey trade reached $1.2 billion, which was still below $3 billion transactions between the two nations a decade before. Turkish minister of industry and trade added that the figure was unacceptable taking into account the potential economic capabilities of Iran and Turkey and it must be increased. Coskun stated that affected by increased Iranian gas exports to Turkey, the volume of bilateral trade would hit about $2.3 billion. "Although Turkey’s exports to Iran are far from satisfactory, they had greatly increased during recent years," he noted.

Coskun said he believed that Iran has created many opportunities for the private sector of Turkey and its young population constituted a big consumer market near Turkey’s borders. He noted that the Iranian economy was mainly dependent on small and medium economic institutes, adding, "There are many cooperation grounds between the two countries and transfer of Turkey’s experiences in the field of banking to Iran could open a new chapter in cooperation between the two neighbors."

Referring to existing obstacles to developing mutual economic and trade ties, he stated that the most important obstacle in this regard was lack of cooperation between the two countries’ banks.

He opined that due to lack of cooperation between Iranian and Turkish banks, Turkey’s companies, at times, face long delays in opening credit lines and are asked to give hefty bank sureties. He emphasized that if those problems were solved and mutual contacts between Iranian and Turk authorities were increased, the way would be paved for more collaboration between the two countries’ private sectors in two big regional markets, which enjoy vast potentials.

Ali Coskun opined that since small and medium institutes play an important part in the economies of Iran and Turkey, establishment of organized cooperation between the two countries’ institutes was of utmost importance. He added, "In this regard, the Small and Medium Economic Institutes Support and Development Department, which is affiliated to Turkey’s Ministry of Industry and Trade, is ready to closely cooperate with Iran’s small and medium industries."

Coskun noted that Turkey’s Small and Medium Economic Institutes Support and Development Department was planning to take part in some Iranian exhibitions supported by Turkey’s ministry of industry and mines. Turkish minister of industry and mines noted that based on the said agreement and the paragraph pertaining to establishment of a data bank between the two countries, small and medium institutes of both countries could reciprocally take advantage of each other’s publications.

When asked about Coskun’s opinion about holding the 7th congress of the International Business Forum in Tehran and his expectations, the minister stated that the association of independent industrialists of Turkey was in charge of presidency and secretariat of the International Business Forum and comprised representatives of private sectors from about 30 Islamic countries.

"The association is made up of businesspeople from countries with which Turkey has enjoyed close historical, cultural and religious ties and can play a very important part in boosting commercial and industrial relations between Turkey and other Islamic countries. I believe that coming together of economic and political representatives of countries within the framework of the association and exchange of viewpoints with regard to their respective countries as well as various political and economic issues at regional and international levels will help expand multilateral relations among countries and provide suitable grounds for new cooperation.

Therefore, we believe that the International Business Forum along with the Organization of the Islamic Conference (OIC) and Economic Cooperation Organization (ECO) has paved the way for more cooperation of businesspeople and industrialists from member countries in joint economic activities and investments and can become a platform for implementation of joint projects among member states," he said.

Fortunately, there is a strong political will for development and deepening of relations in both countries and the way is clear for this development more than anytime before. Both countries enjoy common cultures, values and borders as well as many reasons and privileges for development of economic and trade ties and these advantages must be used in line with mutual interests of both nations. I believe that non-governmental organizations must make cultural and historical commonalties as well as existing advantages of both countries a starting point and pave the way for institutionalizing all-out expansion of relations. I believe that contacts between high-ranking officials from both countries are important opportunities for the establishment of ties among non-governmental organizations. Reciprocal invitations for representatives of these organizations can provide adequate grounds for the establishment of necessary contacts among them.

The two countries have reached agreements for cooperating in various industrial fields including iron and steel; paper and cardboard industries; textile; foodstuff and packaging; leather; petrochemicals; automobiles; spare parts; chemical fertilizers; electric and electronic machinery as well as industrial machinery within framework of medium and small industries.

Turkey’s ministry of industry and trade is ready to draw up plans with marketing goals to export Turkey’s goods to Iran through the Small and Medium Economic Institutes Support and Development Department and to inform the Iranian side of the needs of Turkish organizations for goods imports from Iran. He stated that Turkish companies were ready to streamline Iranian textile and garment industries and make relevant investments in Iran. The industries of both countries supplemented each other and Tehran and Ankara can make joint investments in the fields of iron and steel as well as automobile industries. Turkey is ready to cooperate with Iran for the supply of technical and engineering services for iron and steel industries.

Both countries have provided reciprocal opportunities for each other’s private sectors in view of their growing young population, but they have not taken full advantage of the potential capabilities of each other.

The volume of trade between the two countries amounts to $150 billion, accounting for about 1.4% of each country’s total trade. The figure must increase to 4% in the short run and the volume of bilateral trade must reach $6 billion.

A Turkish delegation visited Iran recently to pave the way for more cooperation between the private sectors of Iran and Turkey and to study ways of increasing the volume of bilateral trade exchanges to $6 billion in a balanced manner and they achieved good results.

During the trip, the two countries signed an agreement on concluding preferential trade contracts and it was decided that the level of customs duties be reduced from 45% to about 4% which will lead to considerable increase in bilateral trade transactions.

It must be pointed out that during the visit both sides also reached important agreements with regard to their private sectors. A crucial step taken in bilateral trade relations during the trip was to prevent double taxation, and the agreement was followed by the approval of foreign investment law in Iran. I believed that the private sector of Turkey can make investments in Iran with more vigor.

The establishment of a border trade center at three border points between Iran and Turkey was one of the most important steps taken during recent years for the expansion and deepening of bilateral economic and trade relations.

Boosting bilateral ties will not only be a positive development for the two countries, but also for the whole region and the world and will contribute to peace, stability and more welfare in the whole region. Through investing in Iran, Turkish companies will, in fact, secure a foothold in the Middle Eastern and Central Asian markets and, reciprocally, investment of the Iranian companies in Turkey will facilitate their presence in the European markets.

During the second half of the 20th century convergence and cooperation among countries within the framework of international economic institutes became more important and various countries found out that cooperation under the aegis of such institutes would have many benefits for them.

Understanding this, Turkey attaches great significance to cooperation with regional and international organizations and has been active along with Iran as a founder of such organizations as the Organization of Islamic Conference, Economic Cooperation Organization and D-8 Group.

It must be noted that the 19th meeting of the permanent committee of economic and trade cooperation of the Organization of Islamic Conference will be held in Istanbul with providing grounds and encouraging cooperation among private sectors of the Islamic countries on top of its agenda.