Turkey, Iran Seeking to boost Trade to $30 Billion

Ankara, Turkey | February 06, 2010 by D-8 Secretariat

Turkish Prime Minister Tayyip Erdogan (R) and Iranian Foreign Minister Manouchehr Mottaki pose before a meeting in Ankara February 2, 2010. (Reuters photo)

Iranian Foreign Minister Manouchehr Mottaki and Turkish Prime Minister Recep Tayyip Erdogan have held talks in Ankara this week that focused on the expansion of ties between Iran and Turkey. Mottaki traveled to the Turkish capital on Tuesday to attend the 21st meeting of the Iran-Turkey Joint Economic Commission and met Erdogan after his arrival, Iranian Press TV reported.

Iranian Foreign Minister reaffirmed the importance of transporting Iranian natural gas to Europe over Turkey, calling for joint investments.

“Opening new phases in the South Pars Natural Gas Fields, solving issues regarding a sales agreement and the establishment of a joint refinery are important projects,” Mottaki said.

During the meeting, the Iranian foreign minister highlighted the importance of the agreement between Iran and Turkey to set up joint industrial towns and said the move could lead to a great enhancement in their bilateral relations.

The Turkish prime minister said that relations between the two countries are already at an excellent level.

Erdogan noted that trade between Iran and Turkey surpassed $10 billion last year and stated that the two countries are determined to increase it to $30 billion.

Speaking to reporters in Ankara ahead of a Joint Economic Commission (KEK) meeting, Turkish State Minister Cevdet Yılmaz said the government is committed to working to improve relations with its neighbor Iran and that mutual gas transfer projects were a driving force behind such efforts.

Yılmaz said his government’s attempts to improve ties with Iran aim to render the 21st century “the golden age” of Turkish-Iranian relations by carrying them from the field of energy to larger areas with a spillover effect, which in turn will bring about peace and prosperity to the entire region. Mottaki agreed with Yılmaz’s remarks, claiming that both countries are on the verge of a “historical era.”

Making mention of energy relations between the two countries, Yılmaz said a Turkey-Iran pipeline was among the most significant joint projects both countries have realized over the years. Recalling that the pipeline transfers natural gas worth around $2 billion every year, the minister said the government expects this amount to increase in the years to come. “We believe projects for the transfer of Iranian natural gas to Europe via Turkey will give a momentum to relations between the two largest economies in the region.” In this regard, Yılmaz went on to say, Turkey valued Iran’s contributions to the Nabucco natural gas pipeline project.

Following Prime Minister Recep Tayyip Erdoğan’s latest visit to the neighboring country, Iran and Turkey signed a number of deals to facilitate the efficient flow of gas through Turkey to Europe, including accords on allocating some of Iran’s South Pars gas field to the Turkish Petroleum Corporation (TPAO), allowing Iranian gas to be transported across Turkey and Turkmenistan’s gas to be pumped to Turkey via Iran. Yılmaz said Turkey welcomed these developments. On the other hand, the rapprochement with Iran has attracted Washington’s discontent.

Turkish Minister said Turkey and Iran are seeking to boost bilateral trade to as high as 30 billion dollars within five years, adding that the two countries need to remove trade barriers.

Yilmaz said that a natural gas pipeline constructed between Turkey and Iran was one of the most important projects between the two countries, adding that the shipment through the pipeline was worth 1.5 to 2 billion dollars annually.

“It is obvious that these figures will go up in the coming years. Projects such as the transportation of Turkmen and Iranian natural gas to Europe over Turkey will bring our relations to a much higher level,” Yilmaz said.

Sources: PressTV, TodaysZaman, D-8.

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