Kazakhstan and Iran are discussing the creation of a joint company in the field of trade and agriculture
The 18th meeting of the Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation between Kazakhstan and Iran was held in Astana.
The event was co-chaired by Deputy Prime Minister – Minister of Trade and Integration of the Republic of Kazakhstan Serik Zhumangarin and Minister of Agriculture of Iran Seyed 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 foreign trade turnover of 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 on expanding and strengthening cooperation to ensure access of goods to the markets of the two countries. This will accelerate the achievement of the goal of increasing trade turnover between the countries to $3 billion.
Following the results of the investment forum held in Tehran during the visit of the President of Kazakhstan to Iran in June 2022, the first results were outlined. In particular, two projects with large Iranian companies are under development: Iranian Babak Copper Company (MIDHCO) and Dana Investment.
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 facilitate the establishment of long-term and mutually beneficial ties between interested companies.
"We consider Iran as a trade hub, which will allow us, thanks to the developed trade and logistics infrastructure, to increase exports to the countries of Africa and the Middle East. According to our calculations, this is about $600 million," Serik Zhumangarin said.
As a support for exporting companies, the Ministry of Trade and Integration of the Republic of Kazakhstan is implementing an export acceleration program. It provides training and support for export-oriented enterprises to enter international markets. This year, Iran is included in the list of target markets for the export of Kazakhstani goods.
Today, Kazakhstan is ready to increase the volume and expand the range of exported food products. In addition to the traditional supplies of grain and oilseeds, our country is interested in exporting beef and lamb to the Iranian market. In turn, there is a demand in Kazakhstan 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 agricultural sector will be mutually beneficial and will ensure food security of both countries.
For his part, the Minister of Agriculture of Iran Seyed Javad Sadati Nejad announced the readiness of Iranian enterprises to develop exports of fish and dairy products, honey, fruits and vegetables, herbs and dried fruits, food, chemical and non-chemical pesticides to Kazakhstan.
The head of the Iranian delegation also informed about 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, petroleum products, high-tech projects, oil and gas industry by creating an Iranian consortium (alliance of Iranian companies) and developing cooperation in the field of engineering and infrastructure services, such as various types of power plants, berths 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 may be the Caspian node.
The Kazakh side voiced the issue of Iran providing preferential tariffs for rail transportation of Kazakhstani 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-Kapikey checkpoint. The railway infrastructure at the Turkish checkpoint "Razi" can pass up to 2 million tons per year. The current annual volume of transshipment in the Turkish direction does not exceed 800 thousand tons," Deputy Prime Minister Serik Zhumangarin said.
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 amendments and additions to the Agreements between the Government of the Republic of Kazakhstan and the Government of Iran on avoidance of double taxation and 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 cooperation between free trade zones and special economic zones of Iran and Kazakhstan.
At the end of the plenary session, Serik Zhumangarin and Seyed 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.