Export development and its requirements



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Export development and its requirements

Export development and its requirements


Why is exports’ development so important for the countries of the world? The most important reasons to pay attention to exports are briefly: Increasing foreign exchange earnings, creating new job opportunities, strengthening economic strength, gaining access to new markets and reducing production costs (due to production on an economic scale and utilizing unused capacity and gaining international prestige and prestige). To show the importance of exports in the global economy, suffice it to say that the total value of exports in the world in 2020 has given about ($ 17.5 trillion).

In the current situation where Iran's oil exports have decreased due to the economic sanctions imposed by the United States and its allies and consequently foreign exchange earnings have decreased, the need for a long-term strategy for the country's non-oil exports is felt more than ever. According to the country's foreign trade statistics in 1397, the share of 14 neighboring countries in attracting the country's exports was more than 50%, therefore, removing barriers and problems in trade and transit of goods between Iran and neighboring countries, is at the top of all activities that must be done to develop non-oil exports.

Countries that face declining foreign exchange earnings or access to world currencies for whatever reason are struggling to engage in large-scale cross-trade. Mutual trading includes several forms, including: clearing, buyback, compensatory trading, OFFSET trading and counter purchase.  In the meantime, it is necessary that the instructions for conducting reciprocal trade be prepared by economic experts and submitted to the Cabinet for approval. In the last two years, the International Exhibitions Company of the Islamic Republic of Iran has made changes in its exhibition programs in accordance with the specific economic conditions of the country. These include prioritizing companies and institutions with high export potential, paying special attention to start-ups and considering concessions for them, preparing a plan to establish a permanent exhibition of Iranian export goods to be visited by economic and trade delegations.

Also giving priority to exhibitions offering non-traditional goods (especially goods made using advanced technologies), prioritizing the establishment of special overseas exhibitions, especially in countries that need the goods offered in these exhibitions, these are the programs implemented by the International Exhibitions Joint Stock Company of the Islamic Republic of Iran.

 The most important steps that can be taken to develop non-oil exports in the current situation are as follows:

1.      Encourage knowledge-based companies and production units located in science and technology parks to produce innovative goods and new items that are in demand in all markets.

2.      Select a maximum of 10 important goods from the list of current exportable goods, the number of which reaches several thousand items, and focus on solving all the problems and obstacles to their export.

3.      Strengthen export organizations and unions and use their potential to penetrate new markets.

4.      Increase the number of business advisers and select them on the basis of competency criteria, provide funding for their activities and create opportunities for advisers to perform their duties in the business areas of their countries of residence - outside of political representation.

5.      Revision in export incentives or incentive systems that are not effective and sometimes are not fully implemented.

6.      Utilizing the capacity of the country's free trade zones to develop exports and meet the basic needs of production units and reviewing the law establishing these zones, which has been approved for more than a quarter of a century.

7.      Revision of the law on attracting foreign capital and granting attractive incentives to foreign investments that are used in the export sector and ensure the transfer of advanced technologies to the country.

8.      Special attention is paid to solving the problems of exporting technical-engineering services that have a high unused capacity to generate foreign exchange earnings. (The export capacity of this sector is over $ 30 billion, and at the highest level in one of the years, only $ 4 billion of this capacity has been used.)

9.      Rationalize the base prices of exported goods to obtain foreign exchange contracts and calculate customs statistics and prevent underestimation of under-valuation prices of exported goods or over-valuation prices of imported goods.

10.   Refrain from issuing consecutive and numerous directives for the import and export of goods or cross-sectional restrictions that make the country's foreign trade process difficult.

11.   Take advantage of the benefits of Iran's accession to the Eurasian Economic Union and the tariff reductions for Iranian exports to the union members.

12.  Determining specific criteria and frameworks for the use of national currencies of countries that trade with Iran, using the experiences of countries that have replaced this method with reference currencies in previous years.

13.  Increase the capital of the Export Development Bank of Iran and the Export Guarantee Fund to increase the lending power and guarantee coverage they can provide.

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