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Today is Tuesday - June/25/2019
Brazil and Iran discuss progress on bilateral trade agenda

Brazil and Iran discuss progress on bilateral trade agenda

Seyed Ali Saghaeyan was named to the post of ambassador to the Republic of Iran in Brazil today by Minister of Industry, Foreign Trade and Services (MDIC), Marcos Pereira, to discuss progress on the bilateral agenda between countries.

Trade with the country is treated as a priority by the Brazilian government.
"The improvement in relations with Iran is an important demand of the Brazilian productive sector. We have verified the growth of the trade chain and we understand that we can do much more, "said Marcos Pereira. The minister acknowledged, however, that one of the main obstacles to trade is still the banking system. There is no banking relationship between countries, which makes it impossible to make payments.
Due to the urgent need to solve the problem, the Foreign Trade Chamber (Camex), linked to the MDIC, has an active working group focused on improving economic-trade relations with Iran - especially in the meat, food, medical- Hospital, machinery and automotive. The ministry works on building a solution involving government and banks. "There is a government interest that this will advance in the shortest possible time," the minister said.
With a population of more than 80 million inhabitants and a relatively high per capita income, Iran is today an attractive consumer market. Trade data show considerable expansion in trade relations with the country. From January to May this year, there was a 33% increase in the trade flow, compared to the same period last year, totaling just over one billion dollars.
In 2016, the trade flow between Brazil and Iran was US $ 2.3 billion, with Brazilian exports reaching US $ 2.2 billion and imports from Iran reaching US $ 78.5 million. Thus, there was a surplus of US $ 2.15 billion for Brazil. The expectation for the Brazilian side is to obtain even greater results from the completion of measures such as the full inauguration of the remaining stages of the Single Foreign Trade Portal and the modernization of national tax legislation, according to Minister Marcos Pereira.
Bilateral relations were relaunched at the end of 2015 with the reactivation of the Joint Commission on Economic Issues, which had its fourth meeting in November last year in Brasília, with broad participation of the Brazilian productive sector.
Marcos Pereira took advantage of the meeting to convey to the ambassador, on behalf of the Brazilian government, solidarity with Iran for the terrorist attack that took place in Tehran on June 7, when the country's parliament and the mausoleum of the founder of the Islamic Republic, Ayatollah Khomeini , Were hit. At least 17 deaths were confirmed.
The ambassador also welcomed the re-election of President Hassan Rouhani in the first round on May 19. The expectation is that Rouhani continues the policies of opening the country and approaching with the West.