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Potentials of Gilan in Iran's Foreign Commerce

Commercial Analysis;Institute of Commercial Studies & Research (Monthly)
Vol. 9, No. 99; August 1995, By: Seyyed Hassan Ma'soumi Oshkouri

Summary:

The province of Gilan, located on the coast of the Caspian Sea, benefits from an advantageous position regarding commercial relations with the countries of the Caspian Sea region. The importance of this position has increased after the collapse of the U.S.S.R. This article is a statistical survey of the imports and exports of Iran via the sea ports of the province of Gilan during the past 5 years. Moreover it discusses the problems as well as the advantages of this province in connection with foreign trade.

Text:

Foreign Trade: The trend of Gilan's foreign trade and the percentage of national trade it covered in the course of the First Five Year Economic, Social and Cultural Development Plan, is as follows:

1-In 1989, the amount of goods imported via the custom offices of Anzali and Astara, exceeded 900 000 tons. The value of these imported goods was nearly 21 billion Rials that is 2.2% of the total national imports. The volume of goods exported in 1989 from the two above mentioned customs was 1.8 thousand tons worth nearly 1.6 billion Rials that is 2.1% of the total value of Iran's non-oil exports.

2-In 1990, the amount of goods imported via the customs of Anzali and Astara was more than 1.2 million tons worth less than 34 billion Rials, that is 2.7% of the total value of Iran's national imports.

The volume of goods exported during this year from the two mentioned customs, exceeded 1000 tons and was worth less than 1.4 billion Rials, that is 1.6% of the total value of Iran's non-oil exports.

3-In 1991, the amount of goods imported from the customs of Anzali and Astara was more than 871 000 tons and was worth less than 36 billion Rials. This figure is 1.8% of the total value of Iran's national imports.

4-In the year 1992, Iran's imports via the custom offices of Anzali and Astara exceeded 1.1 million tons worth more than 74 billion Rials thus having 3.7% share in the total value of Iran's national imports. The volume of goods exported in the course of the mentioned year from the two customs of Anzali and Astara was nearly 32 000 tons worth less than 5 billion Rials. This amount is 2.5% of the total value of Iran's non-oil exports.

5-In 1993, the total amount of goods imported via the customs offices of the mentioned cities, exceeded 1.4 million tons worth less than 161 billion Rials, that is 1.5% of the total value of Iran's national imports. The volume of goods exported in the course of 1993 from Anzali and Astara was less than 77 000 tons, worth less than 18 billion Rials, i.e., 6.9% of the total value of Iran's non-oil exports.

In 1993, goods imported via the Anzali Customs Office included: gasoline; equipment for Tavanir (Iranian Electricity Board); mechanical equipment; agricultural tools; iron ware; different kinds of paper and wood; chemicals; electrical tools and miscellaneous items. Goods imported via the Astara Customs Office are the following: iron ware; lumber; chemicals; rubber and miscellaneous items.

As for exports, goods exported through the Anzali customs office were: agricultural products; minerals; as well as industrial and forestry products, and hygienic goods, and those through Astara were: textiles, citrus fruits, potato, rubber shoes, risen, clothing and miscellaneous goods.

A look at Iran's imports via the entry and exit borders of the Gilan province, during the First Five Year Plan shows an increase in value; from 21 billion Rials in 1989 to 161 billion Rials in 1993. However the share of the mentioned province in the total value of national imports decreased from 2.2% in 1989 to 1.5% in 1993. This trend is in contrast to the increased share of this province in national imports in the years 1990 and 1992. In the year 1991, Gilan's share in Iran's national imports decreased.

The value of Iran's national exports from the entry and exit borders of Gilan, during the First Five Year Plan also increased, from 1.6 billion Rials in 1989 to 18 billion Rials in 1994. In harmony with this increasing trend, the share of Gilan's non-oil exports also increased from 1.4% of the total national non-oil exports in 1989 to 6.9% in 1993. This increasing trend has also been observed during the years 1990, 1991 and 1992.

The volume of foreign trade conducted via the entry and exit borders of Gilan also increased during the First Five Year Plan from 22.6 billion Rials in 1989 to 179 billion Rials in 1993. However, the share of Gilan's national trade decreased from 2.3% in 1989 to 1.7% in 1993. This has occurred in spite of the increased share of Gilan in the total national trade during the years 1990 and 1992. In the year 1991, Gilan observed a decrease in its share of the total national trade. It can be said that the fluctuations in the share of Gilan depend on the fluctuations in the province's volume of national imports.

Problems and Potentials: Research and studies conducted prior to formulating the Second Five Year Economic, Social and Cultural Development Plan of the Gilan province, have highlighted the following problems and potentials of the mentioned province in connection with foreign trade.

Problems: -Lack of sufficient port facilities at port of Anzali and lack of custom facilities in Astara.

-Lack of suitable land routes, namely: railway routes from Astara to Gazvin and highway routes from Rasht to Ghazvin.

-Lack of regional decision-making centers for Gilan's import and export activities.

-Unclear commercial policies of Gilan regarding programmed trade relations with the neighboring countries and Eastern Europe.

Potentials: -The advantages of the Caspian Sea, port of Anzali, and the border city of Astara for having trade relations with the Central Asian Countries, Caucasia, Russia and East European countries.

-The possibilities of establishing free trade and industrial zones; expanding the infra structural establishments in port of Anzali and Astara, as well as Rasht-Ghazvin railroad and highways.

Comparative Advantages: The province of Gilan, due to the suitable conditions it possesses, can benefit from some of the advantages of the region in order to have a more active role in the field of Iran's foreign trade. These advantages can be analyzed from two points of view: 1. In the fields of setting up free trade and industrial zones, and 2. In the field of the national division of commercial activities.

The Comparative Advantages of Gilan Regarding the Establishment of Free Trade and Industrial Zones: -Benefits of proximity with members of the Caspian Union, and possibility of having economic, cultural and commercial relations with these Republics via port of Anzali and Astara and the opportunity of expanding ties with East European countries.

-Having port, customs and trade facilities at port of Anzali with an annual potential capacity of four million tons. At the moment only one million tons capacity is being utilized. Moreover, of the custom facilities available in Astara, only 0.5 million tons are used. The potential capacity of these facilities is two million tons.

-The possibility of establishing sea routes, land routes and railroads between this province and the above mentioned Republics from Anzali and Astara.

-Having human and environmental capacities in port of Anzali for setting up free trade and industrial ports, and setting up free trade and industrial zones in Astara.

-Having experience in trade and commercial ties between the province of Gilan and the above mentioned Republics via port of Anzali and Astara.

Noteworthy, is the fact that in the Second Five Year Development Plan of Gilan, the commercial section is considered fourth priority in regional development plans.

Comparative Advantages of Gilan in National Division of Iran's Foreign Commercial Activities: -Capabilities of expanding commercial activities, within the framework of The Caspian Sea Union, and the expansion of trade activities with the newly independent Republics and other East European countries.

-Proximity of this province with Tehran and the possibility of establishing rapid route facilities such as railroads between the two areas in order to transfer imports and exports.

-Possibility of setting up regional decision-making centers for import and export activities in the city of Rasht.

-Possibility of establishing centers in port of Anzali and Astara for the distribution of imported goods and transporting them to the different parts of Gilan as well as other markets of Iran.

The potentials and advantages of Gilan in connection with commercial activities are not limited to its regional characteristics - the dimension that has been discussed in this article. This province also has significant economic potentials for actively participating in foreign trade. Regarding these economic potentials the following products can be mentioned: rice, tea, silk, olive oil, hazel nut and walnut, industrial products and minerals. The mentioned items are all produced in this province and can be exported to the countries of Central Asia, Caucasia, Russia and Eastern Europe.