site.btaFavourable Conditions Are Present for Development of Bulgarian-Iranian Trade and Economic Relations

Favourable Conditions Are Present for
Development of Bulgarian-Iranian
Trade and Economic Relations


Tehran/Sofia, March 7 (BTA) - Opening a Bulgarian-Iranian business forum in Tehran on Monday, Bulgarian Deputy Economy Minister Lyuben Petrov said that there are favourable conditions for the development of the bilateral trade and economic relations as a result of the announced implementation of the Joint Comprehensive Plan of Action on Iran's nuclear programme and the lifting of the limitations for the business, the Bulgarian Economy Ministry reported Monday.

The business forum is organized within the 18th session of the Bulgarian-Iranian Mixed Intergovernmental Commission for Economic, Scientific and Technical Cooperation, which takes place from March 6 to 9 in Tehran.

"Bulgaria has potential and interest to increase the realization of products of the chemical industry, pharmaceutics, machine building and electrical engineering, ICT products and services, agricultural produce, equipment, transport, energy, ecology and tourism," Petrov said. He put an emphasis on Bulgaria's readiness to support each specific business initiative in the form of exchanges of business visits and delegations, and organization of business forums. "The goal is to encourage companies from both countries to get better acquainted with the existing potential for growth of their mutual trade. Adequate mechanism are needed for direct payments and export insurance," he went on to say. Petrov added that the business from the two countries can take advantage of the existing opportunities also through joint initiatives for which they can rely on the Bulgarian side's support.

Representatives of 66 Bulgarian companies and more than 100 Iranian took part in the business forum.

Earlier on Monday Petrov conferred with Iranian Deputy Industry, Mines and Trade Minister Valiollah Afkhami-Rad, who also heads Iran's Trade Promotion Organization. The two discussed the state of the bilateral economic relations and ways for their further promotion. The two deputy ministers concurred that the current level of the commercial exchange between Bulgaria and Iran falls short of the two countries' potential, and should reach 1,000 million U. S. dollars.

The two governments should focus their efforts on encouraging more active work between Bulgarian and Iranian companies. Afkhami-Rad said that the concrete measure in this respect include participation in trade fairs, tackling possible visa problems, opening direct air service between Bulgaria and Iran. In the context of the Chinese project for a new Silk Road, Bulgaria and Iran already work on the construction of a new transport and transit corridor that goes via Iran, Azerbaijan, Armenia, Georgia, the Black Sea and Bulgaria.

Afkhami-Rad noted that serious potential for cooperation exists in the area of engineering and technical services, as well as in the creation of joint ventures. The official said that the cooperation with other countries is of particular importance to his country also on account of the drop in oil prices which encourages Iran to develop and export other products instead of only crude oil and natural gas. Petrov invited Afkhami-Rad to visit Bulgaria accompanied by a business delegation.

The Bulgarian official statistics show that in the ten years between 2004 and 2014, the commercial exchange between Bulgaria and Iran increased more than ten-fold, to 166.9 million U. S. dollars. Bulgarian exports to Iran grew to 123.9 million dollars in 2014, from 11.9 million dollars in 2004. Imports from Iran increased to 42.3 million dollars, from 2.4 million dollars. Although the growth is tangible, Bulgaria thinks that it still falls short of the potential of the two economies. The bilateral commercial exchange stood at 155.2 million dollars in 2015. Bulgaria exports totalled 139.6 million dollars, and imports from Iran reached 15.6 million dollars. To Iran Bulgaria mostly exports mineral and chemical phosphorus fertilizers, tobacco products and medicines. LY/DS, ZH//