The event, co-chaired by the Deputy Prime Minister - Minister of Trade and Integration of the Republic of Kazakhstan Serik Zhumangarin and the Minister of Agriculture of the Islamic Republic of Iran Seyyed Javad Sadati Nejad, was attended by representatives of government circles, the financial sector and business.
The parties noted the successful development of interstate relations. Positive changes are observed in mutual trade. According to the results of 11 months of 2022, the external trade turnover between Kazakhstan and Iran reached $500 million. At the same time, exports prevailed over imports and amounted to $307 million, imports - $186.1 million.
In his speech, Serik Zhumangarin noted the need to continue work to expand and strengthen cooperation to ensure access for goods to the markets of the two countries. This will accelerate the achievement of the goal of increasing trade between the countries to $3 billion.
Following the results of the investment forum held in Tehran as part of the visit of the President of Kazakhstan to Iran in June 2022, the first results have been outlined. In particular, two projects with large Iranian companies Iranian Babak Copper Company (MIDHCO) and Dana Investment are under development.
In addition, Kazakh companies are interested in establishing uninterrupted exports of industrial and agricultural goods to the Iranian market.
According to the Deputy Prime Minister, in the first half of 2023, it is proposed to conduct “reverse” trade and economic missions in Kazakhstan and Iran. Business meetings will contribute to the establishment of long-term and mutually beneficial relationships between interested companies.
“We view Iran as a trading hub that will allow us, thanks to the developed trade and logistics infrastructure, to increase exports to African and Middle Eastern countries. According to our calculations, this is about $600 million,” said Serik Zhumangarin.
To support exporting companies, the Ministry of Trade and Integration of the Republic of Kazakhstan is implementing an export acceleration program. It provides for the preparation and support of export-oriented enterprises to enter international markets. This year, Iran is included in the list of target markets for the export of Kazakh goods.
Today, Kazakhstan is ready to increase the volume and expand the range of exported food products. In addition to the traditional supply of grains and oilseeds, our country is interested in exporting beef and lamb to the Iranian market. In turn, in Kazakhstan there is a demand for Iranian fruits, vegetables, as well as nuts, pistachios, dates and other foodstuffs.
Kazakhstan has territorial, technological and logistical capabilities for the production and shipment of high-quality organic agricultural products to Iran. In this regard, Serik Zhumangarin invited Iranian businessmen to invest in food production in our country. Joint projects in the agro-industrial complex will become mutually beneficial and will ensure the food security of both countries.
For his part, Iranian Minister of Agriculture Seyyed Javad Sadati Nejad announced the readiness of Iranian enterprises to develop the export of fish and dairy products, honey, fruits and vegetables, herbs and dried fruits, food products, chemical and non-chemical pesticides to Kazakhstan.
Also, the head of the Iranian delegation announced the plans of the National Development Fund of Iran to make direct investments in Kazakhstan and participate in projects with a high payback rate in the field of energy, oil, gas, oil products, high-tech projects, oil and gas industry through the creation of an Iranian consortium (alliance of Iranian companies) and development cooperation in the field of engineering and infrastructure services, such as various types of power plants, wharves and ports, tunnels and highways.
At the meeting of the Intergovernmental Commission, the parties discussed the further expansion of transport and logistics cooperation. In particular, the development of international transport corridors North-South, East-West and TRACECA. The key link in this direction can be the Caspian junction.
The Kazakh side voiced the issue of Iran providing preferential tariffs for railway transportation of Kazakh goods to Turkey. According to the Deputy Prime Minister, this would give impetus to the development of the trans-Iranian route towards Turkey.
“It is advisable to work out tariff breaks for transit cargo towards Turkey through the Razi-Kapikoy checkpoint. The railway infrastructure at the Turkish Razi checkpoint can handle up to 2 million tons per year. The current annual volume of transshipment in the Turkish direction does not exceed 800 thousand tons,” said Deputy Prime Minister Serik Zhumangarin.
Following the results of the 18th meeting of the Intergovernmental Commission, the parties agreed to work out the creation of a joint company to promote trade in the countries of the Persian Gulf, Central Asia and the Middle East. It was also decided to hold expert negotiations on introducing amendments and additions to the Agreements between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Iran on the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income and capital.
In addition, Astana and Tehran expressed their intention to cooperate in the mining sector and develop interaction between free trade zones and special economic zones of Iran and Kazakhstan.
At the end of the plenary session, Serik Zhumangarin and Seyyed Javad Sadati Nejad signed the Protocol of the 18th Joint Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation between the Republic of Kazakhstan and the Islamic Republic of Iran.
By the Kazakhstanskaya Pravda
