Iran is a suitable conduit for trade, energy and non-energ between the Arab states of the Persian Gulf and the landlocked Central Asian states.

From the Persian Gulf to the Caspian region, the Caucasus, Central Asia, South Asia and beyond, thanks to its unique geographical location, Iran is in many ways an ideal connecting bridge that has not until now fully exploited its advantageous ’equidistance’ from India and Europe, Asia Times wrote.
Straddled between the two energy hubs of the Persian Gulf and Caspian Sea, Iran is a suitable conduit for trade, energy and non-energy, between the Arab states of the Persian Gulf, which are members of the Persian Gulf Cooperation Council (PGCC), and the landlocked Central Asian states. The PGCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Also, with ambitious transportation links projected under the veneer of a ’north-south corridor’, Iran, Russia and India have conceived new areas of cooperation that connect northern Europe to the Indian Ocean via Iran and the Russian Federation. Already, Iran is an energy exporter to Turkey, funneling through Turkmenistan’s gas and swapping oil with Kazakhstan and Azerbaijan.
Also, Iran has plans not to lag behind the so-called new ’Silk Road’ project that involves China, India and the PGCC states first and foremost and yet for every conceivable reason must be considered Iran-inclusive because of the country’s proximity, its expanding trade and economic cooperation with the PGCC, and its own trade liberalization policies, reflected in the expansion of free-trade zones.
This is one reason why Iran is modernizing its Persian Gulf islands of Kish and Qeshm, hoping to turn them into tourist spots as well as hubs for trade and even finance in the near future.
Iran’s low trade with South Asia is reflected in the sub-optimal commercial ties between Iran and Pakistan, as is the case between Iran and other members of the region’s 10-nation Economic Cooperation Organization (ECO).
Attempts to make the ECO a fulcrum of regional cooperation have by and large failed and ECO’s struggle to achieve a major breakthrough in terms of regional cooperation has not brought significant tangible fruits.
Yet that may change, particularly if Iran (a) is inducted in the Shanghai Cooperation Organization, in which it is presently an observer, and (b) the IPI project finally gets underway, in which case Iran’s greater integration into larger entities will bolster its attempt within the ECO to make this regional organization, which is headquartered in Tehran, more effective.
With respect to the Persian Gulf, the PGCC, which used to shun Iran’s olive branch of cooperation, is rethinking that attitude as it is not far-fetched to think that Iran and Iraq will one day join the PGCC states in a new regional cooperative framework.
Economically, however, for Iran and Non-Alignment Movement states seeking a redistribution of global wealth, concentrated in Western hands, there is no alternative but to push for greater cooperation between themselves and achieve better coordination at international institutions such as the World Trade Organization (WTO), in light of the WTO’s ongoing trade wrangling known as the Doha rounds.
Although Iran is not yet a WTO member, it will be directly impacted by the final agreements of the Doha rounds, due later this year, which is why it is essential for Iranian policymakers to focus on the Doha rounds and to scrutinize the agricultural and non-agricultural new policies of the WTO that distinguish between developed and developing nations.

Iran will import around 30 million cubic meters of gas per day from Turkmenistan and the two neighbors will look into the possibility of further increasing the volume, a senior Iranian official said. Announcing this, Reza Kasaizadeh, head of National Iranian Gas Company, told Fars news agency that the amount of imports was part of an April 25 agreement under which Turkmenistan agreed to resume natural gas exports to Iran which were cut off last winter.
During the negotiations, Iran agreed to pay a higher price for the imported gas, but the details of the new pricing formula were not released.
Central Asia’s top gas exporter stopped deliveries of up to 23 million cubic meters to Iran in late December, citing technical issues.
Iran has said the aim was to raise the gas price and criticized Turkmenistan as an unreliable supplier.

Turkish Trade Minister Kursad Tuzmen has said that Turkey will increase investment in Iran despite US pressures to isolate Tehran.
Tuzmen, who arrived in Tehran at the head of a 60-member trade delegation on Tuesday to attend the Iran-Turkey trade commission meeting, told IRNA prior to his departure from Ankara, “Iran is a key trade partner for Turkey and Ankara is committed to expanding ties with Tehran.“
He added that UN sanctions and US pressures will not strain the cordial ties between Iran and Turkey.
The Turkish minister noted that trade between the two countries has reached more than $8 billion, up from some one billion dollars in 2002.
“Trade between the two countries can easily hit $20 billion and I intend to achieve this goal,“ Tuzmen said.
The Turkish official maintained that robust trade ties will further boost political ties between the two brotherly and neighboring countries.
According to the Iranian officials, Iran and Turkey have the capacities and the means to expand cooperation in different fields and the exchange of political, media and economic delegations could serve to increase mutual understanding between the two countries.

Vice chairman of Iran’s Chamber of Commerce, Industries and Mines, Alaeddin Mir-Mohammad Sadeqi, heading a delegation arrived in Manama Saturday to attend the fifth meeting of Iranian and Bahraini businessmen.
The delegation includes head of Tehran Chamber of Commerce, Industries and Mines, Yahya Al-e Eshaq, heads of six provincial chambers of industries and mines as well as 38 Iranian businessmen.

Iran and Bahrain signed several trade deals on Monday in Manama.

According to Fars news agency, the five-day event (May 3-7) is focusing on a number of topics, including the establishment of an Iran-Bahrain bank, construction of a five-star hotel in the northwestern Iranian city of Mashhad, launching Manama-Mashhad flights, reducing tariffs and easing visa issuance procedures for nationals of the two countries.
In this respect, Ibrahim Zainal, first vice chairman of Bahrain Chamber of Commerce and Industry (BCCI), said on the sidelines of the meeting that the visit would further cement fraternal ties between the two sides.
Bahrain’s Minister of Information Jehad Bukamal, Chairman of the BCCI Esam Fakhro, and the CEO of BCCI Othman Sharif, are attending the meeting.
According to Zainal, members of the visiting delegation will hold one-to-one meetings with prospective Bahraini partners. Also the increase in trade between the two countries is very encouraging and BCCI and the Joint Business Council will continue to play their roles by bringing both private and public sectors closer.
Iran-Bahrain joint committee has been focusing on investment in the export of Iranian oil and gas to Bahrain. Both sides have also signed agreements to boost economic, commercial, technical and investment cooperation, protect investments and avoid double taxation.
The joint committee meeting between Bahrain and Iran will also review the progress of various aspects of mutual cooperation.
In this respect, Zainal said, “Given its experience in the field, Bahrain has become a prominent location particularly for Islamic banks. The country’s potential to enter the Iranian market is high and promising and this can promote further investments in both private and public sectors.“
He added that tourism is also expected to thrive if both sides take advantage of cooperation in the cultural sector and Iran can benefit from Bahrain’s experience in the tourism industry.
The statement issued Sunday by the BCCI on the Iranian delegation’s visit said, “The two friendly countries share special features and characteristics that will help them boost ties.“
Given the strategic locations of both countries, there is also a need to set up a joint shipping company to reinvigorate trade exchanges and monitor export and re-export of goods.
Iran has witnessed significant developments that opened the doors to foreign investment, allowing full ownership for foreigners. In this respect, the country is privatizing a number of economic sectors, providing guarantees for foreign investments which has reached $9.5 billion and is expected to reach $15 billion by the year-end.
More to the point, the favorable economic climate provides an opportunity to exploit economic deals in both countries and implement joint projects mainly in the financial and banking sectors.
There are ample opportunities for Tehran and Manama to increase economic and trade cooperation.
Iran’s vast geographical area and its population of over 70 million have made the country a big and promising market that could add to the momentum of Bahrain’s trade sector.

Approximately 200 tons of saffron are being produced in the country per annum, said director general of the Office for Ornamental and Pharmaceutical Plants and Edible Mushrooms.
Behrouz Gharibi added that a sharp rise in saffron prices caused a decline in production of the precious spice, according to ISNA.
He commended Trade Promotion Organization of Iran for drawing up a package of policies to support the saffron industry, adding that once the plan is approved, the packaging industry will be greatly improved.
“This will lead to an increase in saffron production and exports,“ he hoped.
Gharibi stated that exporters are ready to print logos of purchasing companies on the 5- and 10-gram saffron packages to reduce fraud.
North and South Khorasan provinces are major saffron producing regions in the country.

Avian flu has been brought under control in Iran, declared Agricultural Jihad Minister Mohammadreza Eskandari in a message read out at the ’Specialized Workshop on Bird Flu, Policies and Supervision’ in Tehran which is organized in Tehran by State Veterinary Organization, representatives of UN Food and Agriculture Organization, Asian Development Bank and OIE (world organization for animal health) and attended by Central Asian states, Fars news agency wrote.
Although shared human-animal diseases are considered threat to all countries, Iran has become immune to avian flu thanks to the continuous and active supervision by relevant bodies, the message said, according to Fars news agency. With 65,000 villages breeding domestic fowls and 20,000 industrial poultry farms, Iran has not been contaminated by the virus, it pointed out.
Iranians can safely consume chicken meat and eggs, it assured. The message described the formation of ’National Taskforce to Counter Bird Flu’ by State Veterinary Organization and Agricultural Jihad Ministry as one of the measures taken to combat bird flu.

An official of National Iranian Oil Company (NIOC) has announced that crude from Soroush and Norouz oilfields has been sold under wholesale and long-term contracts.
Head of marketing affairs of NIOC International Affairs, Mohammad-Ali Khatibi told PIN that no surplus crude is available for sale from these fields at the moment. “Their heavy crude has been sold to western and eastern companies. Soroush oilfield produces 90,000 barrels per day (bpd) while Norouz yields 70,000 bpd. These are offshore fields and it is not possible to store their crude. So it is necessary to have oil tankers.“
Meanwhile, National Iranian Central Oil Field Company (NICOFC) announced that Serajeh field is set to produce 1.3 million cubic meters of gas and gas condensates per day. Once Serajeh gas wells 10 and 11 become operational, gas and gas condensate production capacity would reach 1.3 million cubic meters per day.

Islamic Republic of Iran Railways (IR) will issue 1,200 billion rials worth of participation bonds in the year to March 2009, announced the entity’s deputy director for planning, Ali Akbar Tarikhi.
He told MNA that Road and Transport Ministry saved 16 trillion rials by economizing on fuel, of which six trillion rials will be allocated to the rail industry.
The official said that further $250 million from the Oil Stabilization Fund will be set aside for the sector in the year to March 2009.
Tarikhi put IR’s annual budget in the current Iranian year at 2,120 billion rials, adding the figure shows an increase of 15 percent compared to the figure for the previous year. “The sum will be spent on current expenditure as well as maintenance of railway lines and fleet,“ he noted.
The official recalled that IR issued 1,500 billion rials worth of participation bonds in cooperation of Raja Passenger Trains Company in the year to March 2008.