Iran, Turkey bind commerce, energy ties

Istanbul, Turkey | August 23, 2007 by D-8 Secretariat

The Turkish minister for foreign trade aired high expectations for the future of bilateral trade with neighboring Iran on Sunday. A delegation from the Energy Ministry traveled to Tehran for talks aimed at finalizing a preliminary deal between the governments of the two countries in late July.

Part of the deal will enable Turkey to use Iran as a transit route for Turkmen gas. Last weeks the Iranian parliament approved a bill allowing the government to sign the Economic Cooperation Organization Trade Agreement, which will support and boost regional trade on common principles as well as reinforcing economic cooperation among member states by the elimination of non-tariff barriers, a reduction of tariffs and exchange concessions.

Kürsad Tüzmen, the state minister for foreign trade, told the Anatolia news agency that tariff cuts would be rapidly implemented between Iran, Pakistan and Turkey. The agreement has already been approved by the Turkish and Pakistani parliaments. “Approval of the agreement by the Iranian parliament is a very important development. I’m expecting an explosion in Turkey ’s trade with Iran and Pakistan ,” Tüzmen was quoted as saying by Anatolia, as he stressed that the preferential trade deals between Iran, Pakistan and Turkey would be activated in the first months of 2008. “The improvement in economic and commercial relations between Iran, Pakistan and Turkey, which have many commonalities, cannot be left to chance,” Tüzmen further said.

Meanwhile, officials from the Energy Ministry traveled to the Iranian capital on Sunday following the signing of a Memorandum of Understanding (MoU) on Iranian gas exports to Europe via Turkey and Turkmen gas exports to Europe via Iran signed in late July in Ankara by the visiting Iranian Petroleum Minister, Seyyed Kazem Vaziri-Hamaneh and Turkish Energy Minister Hilmi Güler. If the talks in Tehran are positive and the delegations proceed to the task of concluding an agreement, Güler will travel to Tehran later this month, sources at the Energy Ministry, speaking anonymously, said.

The Iranians holding talks with the visiting Turkish delegation are led by Hojjatollah Ghanimifard, the international affairs director of the state-owned National Oil Company (NIOC), reported CNN-Türk on Sunday, noting that his involvement was a sign of the high importance placed by Iran on an agreement with Turkey.

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