Iran and Turkey to revise preferential trade deal

Iran's deputy minister of Industry, Mines and Trade, Valiollah Afkhami Rad, said the preferential trade agreement between Turkey and Iran will be revised. Within the context of preferential trade practices, the contracting parties will have the right to review product lists and tariff rates once every three months, Rad said, adding that the agreement was put into force three months ago and both parties want to amend it.

With the preferential trade system, certain product imports have risen to excessive levels over the past three months, and by extension, the tariff rates of these products will be increased during the amendment process. Rad also noted that a Turkish delegation held talks in Tehran with Iranian authorities on the matter. As part of the practice, Iran's exports to Turkey over the past three months have been higher than its imports. Turkey and Iran impose a preferential trade system on 128 products, with industrial and agricultural goods taking the lead.

According to the Preferential Trade Agreement between Turkey and Iran that entered into force on Jan. 1, lower customs taxes were imposed on 140 products from Turkey and 125 products from Iran – 265 products in total. The agreement was dubbed a "great step," especially given that both countries aim to increase their foreign trade volume, which is currently between $13.5 billion and $35 billion, by the end of 2015.