Tehran Chamber of Commerce President Reports $4 Billion Decrease in Non-Oil Exports

The President of the Tehran Chamber of Commerce announced a $4 billion decrease in non-oil exports in the first nine months of this year compared to the same period last year and criticized the state control of the economy. Mahmoud Najafi Arab stated today, January 26, at the 11th meeting of the Tehran Chamber of Commerce representatives that Iran's economy has faced a significant decline in investment over the past decade. According to Najafi Arab, the share of capital formation from gross domestic product dropped from 30% in 2009 to 18% in recent years. This comes as the Minister of Economy of the Islamic Republic claimed an increase in exports. Ehsan Khandouzi claimed on December 27 that the trade balance was positive by $15 billion, while customs reported that the trade balance had reached a negative $12 billion. The newspaper 'Donya-e-Eqtesad' reacted to this situation by stating that the continued deterioration of Iran's trade balance has led government officials to resort to new methods to present statistics. Hamid Hosseini, head of the Union of Exporters of Oil, Gas, and Petrochemical Products, stated that the effects of the removal of the preferential currency are evident in the decline of food item exports. Experts believe that the subsidies paid to production units effectively create a rent that gives them competitive power and the ability to earn substantial income. In reality, cheap dollars have become a commodity and are provided to producers in the form of dollars at free market prices after export. It is noteworthy that a significant portion of the food industry is controlled by institutions under Ali Khamenei, including 'Astan Quds Razavi', 'Executive Headquarters of Imam's Command', and 'Foundation of the Oppressed'. Experts believe that the increase in the dollar price, export regulations, the supply of currency obtained from exports, and sanctions have also played a role in the decline of non-oil exports. The National Gas Company denied the 'halt of gas exports' to Iraq; one of the two 'exchange points' has gone offline. A trade official stated that the new year will begin with rising prices of legumes. Reuters reported that Iran's oil exports to China have stopped. Iranian carpets have seen a 98% decrease in exports and the migration of weavers. Iran has been cut off from Iraqi dollars; currency exchange with Iran has been banned. Exports to Turkey have decreased by 33%.