Customs Report: For the Second Consecutive Year, Iran's Non-Oil Exports Exceed Imports

Iran's customs announced that last year, $43 billion and 930 million worth of goods were exported from the country, while $43 billion and 684 million worth of goods were imported. Thus, Iran's non-oil exports exceeded imports by $246 million, resulting in a positive trade balance for the second consecutive year. In 2016, the top four largest importers and exporters of goods to Iran remained countries that have traditionally interacted with Iran, with only Germany ranking fifth among countries exporting goods to Iran. In 2015, the value of Iran's foreign trade was $83 billion and 968 million, which increased to $87 billion and 614 million in 2016. According to the official news agency of the Islamic Republic, IRNA, based on these statistics, Iran's exports in 2016 increased by 3.5% compared to the previous year, while imports rose by 5.1%. China, with $8 billion and 377 million, the UAE with $7 billion and 436 million, Iraq with $6 billion and 111 million, Turkey with $3 billion and 244 million, and South Korea with $2 billion and 877 million had the highest imports from Iran. China and the UAE also ranked first and second in exports to Iran, with China's exports to Iran amounting to $10 billion and 753 million and the UAE's exports at $6 billion and 407 million. South Korea, Turkey, and Germany held the third to fifth positions in exporting goods to Iran, with $3 billion and 460 million, $2 billion and 738 million, and $2 billion and 537 million respectively. The public relations department of Iran's customs had also announced last year that Iran's foreign trade balance in 2015 was positive for the first time in 37 years, with a surplus of $916 million. However, Asadollah Asgaroladi, a member of the Iran Chamber of Commerce and a well-known private sector businessman, reacted to this news by stating that 'a positive trade balance is not necessarily good news. If imports decrease, we cannot meet the country's needs.' In contrast, Reza Miri, head of the Export Commission of the Iran Chamber of Commerce, Industries, Mines, and Agriculture, stated that 'a positive trade balance is a blessing; a negative trade balance means we have no money in our pockets, but we are spending.' The prevailing economic recession in Iran and the complicated and difficult process of importing goods to Iran can also be considered reasons for the decrease in imports. According to Iran's customs, the most important export items in 2016 were gas condensates worth $7 billion and 320 million, light oils and products other than gasoline worth $2 billion and 479 million, and liquefied natural gases worth $2 billion and 79 million. Gas condensates are a type of ultra-light and expensive crude oil obtained from gas fields, and these raw products have a significant share in Iran's exports. While Iran includes gas condensates and some crude oil products in its non-oil export basket, some experts believe that gas condensates should not be counted in the non-oil export statistics. The website Tabnak also reported in October 2016 that by excluding liquefied gas and gas condensates from non-oil export statistics, this figure would turn negative. In terms of imports, the main imported items in Iran included agricultural products and vehicles. The most important imported items included animal feed corn worth $1 billion and 413 million, soybeans worth $909 million, and imports of motor vehicles with cylinder volumes of 1500 to 2000 cc worth $893 million, which were the top three imported goods in Iran. In recent years, with the severance of relations between Iran and European countries due to sanctions, European countries have been removed from the list of Iran's trading partners.