Turkey intends to play major role on Iranian market

By Aynur Karimova

Turkey, which eyes to give a new impetus to its trade ties with neighboring Iran following removal of international sanctions, intends to take the rising golden opportunity in Iran's economy and to play a more active role on the Islamic Republic's market by its private sector.

The first step towards achieving this goal has already been taken: on March 5-6, Turkish Prime Minister Ahmet Davutoglu, who led a high-ranking delegation, was on a two-day visit in Tehran. This visit was the first official visit by a Turkish premier in the wake of the nuclear Joint Comprehensive Plan of Action.

He was accompanied by ministers of economy, customs and trade, energy, transport, communications and development, government officials and representatives of major Turkish media.

Davutoglu first met with Eshaq Jahangiri, Iran’s First Vice President, and the sides discussed regional issues, as well as the issues of mutual interest.

Later, speaking at a joint press conference, Jahangiri said that Iran and Turkey are determined to deal with their differences regarding the regional issues in order to safeguard security in the region.

He also noted that Tehran and Ankara share the same viewpoint on many issues, while there are differences on some regional matters.

He further said the two countries share mutual interest in establishing security and stability in the entire region.

Jahangiri added that terrorist groups are negatively affecting security in the region.

“The officials from the two sides have held fruitful talks on cooperation in oil and energy fields, as well as transportation, customs issues, preferential tariffs, banking ties, as well as tourism,” he stressed.

Jahangiri went on to add that Turkey is the main target for Iranian tourists. He also expressed hope that Turkish investors will invest in Iran’s tourism sector.

“The two sides are determined to boost annual trade to $30 billion,” Jahangiri added.

He said it was agreed that the next round of Iran-Turkey joint commission on economic cooperation will be held in a month to settle the barriers ahead of materializing this purpose.

Iran and Turkey, the Middle East’s two powerful players, share very close economic ties despite taking part in opposing political blocs.

Tehran and Ankara are already clashing over a number of issues, in particular their supporting opposing sides in the Syrian crisis. However, both sides are determined not to allow the political tensions to affect their economic goals.

Tehran and Ankara intend to increase their trade volume to $30 billion. The two states have signed a preferential trade agreement that could pave the way for a rise in the bilateral trade. The two countries’ trade turnover stood at $13.7 billion in 2014, according to the data released by the Turkish Statistical Institute.

The trade turnover between Turkey and Iran stood at $22 billion in 2012 before dipping to $14.5 billion in the following year due to the economic sanctions imposed on Tehran by the West.

Davutoglu, in turn, said that the removal of sanctions on Iran opens up new opportunities for Turkey.

He said that Turkey always supported Iran in the period of sanctions.

“Despite a number of differences between Iran and Turkey, our peoples have much in common,” the Turkish premier added. “Iran is Turkey’s gateway to Asia, and Turkey is Iran’s gateway to Europe."

Iranian market promises a huge opportunity to Turkey in various sectors, including tourism, automotive industry, clothing, textiles, machinery, chemistry, petrochemistry and energy industry, as well as banking, telecommunications and transportation. Apparently, Turkey is not going to lose this tempting market for political disputes.

Turkish prime minister also said that energy issues were discussed during his meeting with Jahangiri.

“Iran is an important gas supplier and Turkey is an important market,” he added.

Davutoglu believes that Turkey and Iran also have significant potential to withstand the growing radicalism in the region.

“Iran and Turkey should prevent external interference in the region,” he added.

He also noted that the Iranian-Turkish cooperation is for the benefit of the entire region.

Davutoglu also met with President Hassan Rouhani to discuss mutual relations and the latest developments in the Middle East, particularly the Syrian crisis.

Rouhani expressed hope that cooperation between Tehran and Ankara will consolidate bases of stability in the region.

He also emphasized positive impact of the Tehran-Ankara cooperation on settlement of regional issues.

"Iran and Turkey share common goals and interests and they should consolidate bases of stability and peace in the region through cooperation, as well as coordinating and focusing on campaign against terrorism as common enemy," he said.

He added that Iran and Turkey are two brotherly neighboring countries, sharing abundant religious and cultural commonalities. "The basis of religious ideology of the two countries is totally different with that of certain violence seeking countries."

The president underlined the need for campaign against terrorism as a common danger and threat to all nations and said that foreign countries are not after drastic settlement of regional problems and only seek their own interests.

"So, we believe that regional problems should be solved by countries and nations of the region and undoubtedly, Iran-Turkey cooperation will play a constructive role in establishment of durable peace in the region," he added.

Rouhani believes that certain regional problems have not harmed Tehran-Ankara relations.

"There is no obstacle on the way of expanding bilateral relations and today there is a suitable opportunity to make optimum use of potential available to expand bilateral ties in line with interests of the two nations," he noted.

He also said Tehran and Ankara enjoy many capacities for growing relations in various domains, especially in the transportation, energy, trade, joint investment, tourism, scientific and technological sectors and they are ready to start common cooperation in all the fields.

President Rouhani underlined further activation of Iran-Turkey Joint Cooperation Commission and hoped that compilation of operational mechanism in the near future will bring a new change in bilateral relations.

Davutoglu, for his part, underlined the need for Tehran-Ankara regional cooperation to fight terrorism, saying "as far as regional issues are concerned, we should join hands and stand the barbaric methods of the terrorist groups."

He emphasized that Turkey is ready to have full cooperation with Iran in fighting terrorist groups in the region.

The Turkish prime minister said Turkey's foreign policy is based on respecting national sovereignty, territorial integrity, non-intervention of foreign countries, and right of people of countries to decide their fate.