Tuzmen Says It Is Obvious That Trade Deficit Will Increase Between Turkey And Iran As Amount Of Natural Gas Purchased Increases

ISTANBUL - State Minister Kursad Tuzmen said on Friday that it was obvious that trade deficit would increase between Turkey and Iran with a rapid rise in amount of natural gas purchased from Iran in coming years.
Speaking in Turkish-Iranian Business Council meeting, Tuzmen said that Turkey needed Iran for the Middle East and Iran needed Turkey to open to Europe.
Tuzmen noted that trade volume between the two countries which was around 1.5 billion U.S. dollars was not at a satisfactory level.
The total trade volume of the two countries was around 170 billion U.S. dollars, Tuzmen stated.
Tuzmen pointed out that share of the total trade volume of the two countries in world trade volume which was below 1 percent should be increased to 5 percent.
''If we aim to be two countries standing robust on their feet in the future world, we should do this,'' Tuzmen said.
Tuzmen stated that Turkey had significant contribution with Iran in natural gas.
''It is obvious that trade deficit will increase between Turkey and Iran with a rapid rise in amount of natural gas purchased from Iran in coming years. Our government will determinedly implement a foreign trade policy which will be directed to countries that sell energy and that will encourage imports from Turkey, without ignoring commitments made by current agreements. We priorly reiterate our proposal to use a reasonable part of natural gas price purchased from Iran in finance of imports to be made from Turkey,'' Tuzmen said.
Tuzmen noted that the Economic Cooperation Organization (ECO) Trade Agreement reached the stage of signing and it would be signed in the Second ECO Meeting to be held in Islamabad on July 17.
Non-tariff obstacles would be lifted with the agreement, Tuzmen pointed out.
Tuzmen said that they wanted that customs between Turkey and Iran to be used together and added, ''this cooperation between customs and single customs practice will provide great deal of world trade to shift to the customs of these two countries.''
Iranian Minister of Commerce Mohammad Shariat-Madari drew the attention that 8 percent rise in Iran's non-oil production was an indicator of economic development and that rise would increase exports from Iran.
Shariat-Madari emphasized that foreign exchange rate and economy had a positive course in Iran and said that ''despite bad intentions in the surrounding and negative situations, stability continued in Iran and foreign exchange was still stable.''
Pointing out that arrangements facilitating tariffs were made in Iran, Shariat-Madari said that they would give priority to development of private sector and privatization would gain momentum in coming term.
Shariat-Madari stated that a significant strategic step was taken with export of Iranian natural gas to Turkey last November.
Transit transportation of natural gas from Turkey to Europe would establish a strong link between the two countries, Shariat-Madari said.
Stating that they wanted to see Turkey as a bridge opening to the West, Shariat-Madari said that Iran and Turkey could enter into world market uniting their forces and capabilities.
Shariat-Madari said that minimizing tariffs between Iran and Turkey should free trade.
If they attached importance to bilateral relations, a great deal of export of oil and oil products from Iran would be made to Turkey, Shariat-Madari pointed out.
Shariat-Madari said that they had to increase trade volume between the two countries to at least 5 billion U.S. dollars, adding that they were expecting assistance from Tuzmen for development of non-oil products.
(BRC-AÖ) 04.07.2003