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Iran-Turkey preferential trade agreement takes effect


Source: Tehran Times

TEHRAN - The preferential trade agreement, which was signed last year between Iran and Turkey, goes into force on January 1, 2015. Iranian Industry, Mining, and Trade Minister Mohammadreza Nematzadeh and Turkish Economy Minister Nihat Zeybekci endorsed the agreement in a ceremony in Tehran on Wednesday.

Preferential trade agreement is a pact that reduces tariffs for certain products to the countries who sign it. While the tariffs are not necessarily eliminated, they are lower than countries not party to the agreement. It is a form of economic integration.

In January 2014, Iran and Turkey signed the agreement with the goal of boosting bilateral trade. The agreement was signed during Turkish Prime Minister Recep Tayyip Erdogan's visit to Iran.

According to the agreement, 125 items of Iranian goods and 140 items of Turkish goods will be traded based on preferential tariffs as of January 1, 2015.

In September 2014, Zeybekci said boosting trade ties with Iran is Turkey's top priority.

"I explicitly declare that the expansion of economic and trade ties with Iran is the top priority of Turkey. The bilateral trade has gained momentum after the two countries signed a preferential trade agreement," Zeybekci said.

Turkey plans to raise its trade with Iran to $35 billion in 2015, he added.

Trade between Iran and Turkey jumped sharply in 2013 compared to the decade ending in 2012.

Turkey's exports to Iran amounted to $4 billion in 2013, a sharp rise from the $800 million in exports in the entire decade from 2003 to 2012, according to the Turkish Exporters Assembly.

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