Thailand and Iran to consider agreement on lowering tariffs

After the meeting with Iranian Minister of Industry, Mines and Trade Mohammad Reza Nematzadeh, Commerce Minister Apiradi Tantraporn said the two countries wanted to establish a better bilateral trade infrastructure, and a PTA might be one way to do that. She said such a pact could help the two sides achieve their bilateral trade target of US$3 billion by 2021, a goal the two governments had set previously.

Under the PTA, Thailand and Iran would exchange lists of about 100 goods each for reducing tariffs by 10-20 per cent. 

Both countries are expected to complete their feasibility studies by the middle of next year, after which the PTA could be signed.

Thai agricultural products that could have lower tariffs include rice, cassava, rubber, tropical foods and bananas, while Iran |is a good source of gems and jewellery supplies, especially precious stones, as well as oil and gas and fishery products. Iran would also like to export pistachios and figs to Thailand.

Other issues discussed during the first meeting of the JTC were removal of trade barriers and resumption of normal communication between commercial banks of both sides.

In addition, Iran has shown strong interest in importing |Thai rice after it sent a team of public health ministry to inspect rice mills and the quality of produce at one Thai rice exporter. This is a good sign that Iran may resume its imports of Thai rice in the near future.

Apiradi said Thailand had asked Iran to inspect other rice exporters as well.

Thailand and Iran earlier agreed in a memorandum of understanding on the export of 300,000 tonnes of rice from the Kingdom. Thailand used to export up to 700,000 tonnes of rice a year to Iran, and Apiradi believes that export volume could be achieved again in the near future.

After the JTC meeting, some Thai companies showed strong interest in investing in Iran |after the lifting of Western sanctions.

PTT is interested in energy trading and investment cooperation, while Thai Union is keen on doing business there in the form of joint ventures.

Other areas of cooperation could be in the automobile and parts industry, in which Iran would like to attract investment from Thailand, and in the garment industry.

Iran has also encouraged Thailand to transfer know-how in tourism management and development, as it would like to ramp up its tourism industry.

According to the Commerce Ministry, two-way trade between Thailand and Iran was valued $309.48 million last year, of which Thailand’s exports to Iran were worth $217 million.