TEHRAN - Mahmoud Najafi Arab, head of Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) and Ontalap Onalbayev, Kazakhstan’s ambassador to Iran, met at the chamber on Monday to discuss ways to expand trade relations between the two countries.

During the meeting, the Kazakh ambassador announced that a trade delegation led by Kazakhstan's Minister of Trade would soon visit Tehran.

A memorandum of cooperation was also signed between Tehran’s Chamber of Commerce and the Iran-Kazakhstan Joint Chamber of Commerce on the sidelines of the meeting.

The discussions highlighted the Iranian Parliament's approval of the free trade agreement between Iran and the Eurasian Economic Union (EAEU).

Both sides viewed the agreement as a historic economic opportunity to initiate broader economic and trade collaborations between Iran and Kazakhstan.

Trade expansion and new initiatives

During the meeting, Najafi Arab noted that the current trade volume between Iran and Kazakhstan does not align with the potential of both countries.

He described Iran’s observer membership in the EAEU as a turning point for economic relations with member states, including Kazakhstan.

He reiterated Tehran Chamber’s commitment to leveraging its resources and the private sector to foster stronger economic partnerships.

He also referred to the upcoming third Eurasian International Trade Exhibition, scheduled for early March 2025 in Tehran, emphasizing the potential for private sector collaboration in fields such as engineering, pharmaceuticals, medical equipment, machinery, textiles, and food industries.

He called for identifying opportunities in these areas and facilitating sustainable partnerships between businesses in both countries.

The official further proposed establishing joint chambers between Tehran and major Kazakh cities, such as Almaty and Astana, to strengthen bilateral cooperation.

Kazakhstan: A gateway to Russia and China

Ontalap Onalbayev highlighted Kazakhstan’s strategic importance as a reliable trade route to major markets in Russia and China, backed by robust infrastructure and favorable conditions for foreign investments.

He noted that Iran is a significant trading partner for Kazakhstan in the region and commended Tehran’s Chamber of Commerce for its critical role in enhancing bilateral economic ties.

The ambassador announced that a Kazakh trade delegation, including major companies, would visit Tehran for the 20th Joint Economic Committee meeting between the two nations. This visit aims to foster negotiations and partnerships with Iranian counterparts.

Onalbayev emphasized that a cooperation document signed between Iran and Kazakhstan in 2023 outlines a roadmap for economic collaboration, with chambers of commerce from both countries tasked with implementing key provisions. He also noted that Iran’s direct investment in Kazakhstan reached $3.4 billion in 2023, highlighting significant potential for further growth.

Building strategic partnerships

Amir Abedi, head of the Iran-Kazakhstan Joint Chamber of Commerce, proposed twinning Tehran’s Chamber with Astana’s Chamber and called for extending the current 15-day visa-free travel agreement to 30 days.

He stressed that the upcoming Eurasia Trade Exhibition and related events could mark a pivotal step in revitalizing economic ties between the two nations.

Meanwhile during a meeting between Head of Iran’s Trade Promotion Organization (TPO) Mohammad-Ali Dehghan Dehnavi and Ambassador of Kazakhstan to Tehran Ontalap Onalbayev in late November 2024, the Iranian official highlighted the need to establish a joint business council with Kazakhstan,

He said: “The formation of a business cooperation council between the two countries can help in the process of developing trade relations between the two countries, and we are interested in forming this council with the participation of the Iranian and Kazakh Chambers of Commerce.”

He further pointed out the importance of transit and transportation of goods for Iran, adding: “Activating a railway route between the two countries can also play a role in the development of international corridors.”

Regarding the need to expand trade between Iran and Kazakhstan, he said: “We are prepared to develop trade between the two countries, both in imports and exports, and we do not have a priority in which direction our trade should be oriented. Because good imports bring prosperity to the people, and exports contribute to employment and production.”

Elsewhere in his remarks, the TPO head mentioned Iran’s potential and capacities to export technical engineering services to Kazakhstan, saying: “Our companies have good technical knowledge and expertise and can complete various projects with the best quality and the lowest price. Many projects, completed by Iranian contractors in the region, have been appreciated as exemplary projects.”

He called on the Kazakh side to facilitate bank guarantees for Iranian contractors.

Dehghan Dehnavi continued by emphasizing that the Eurasia Exclusive Exhibition in Iran is a good opportunity for the presence of Kazakh traders, merchants, and manufacturers in Iran, saying: “This year, given that the Free Trade Agreement with Eurasia is being ratified in the parliament, we hope that Kazakhstan will have a more serious presence in the exhibition, which can pave the way for the development of trade relations between the two countries.”

Also, during a meeting between Head of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Samad Hassanzadeh and Kazakhstan Ambassador to Tehran Ontalap Onalbayev in early August 2024, the Iranian official criticized the low volume of trade between Iran and Kazakhstan, underlining the need for the implementation of joint cooperation agreements between the two countries as soon as possible.

“The $300 million trade between Iran and Kazakhstan is not proportional to the facilities and capacities of the two countries, and we should all try to achieve the target of 3 billion dollars of trade set in the joint cooperation agreement,” Hassanzadeh stated.

“Iran Chamber of Commerce is pursuing the faster implementation of the joint cooperation agreement between Iran and Kazakhstan with the aim of increasing the trade relations between the two countries,” the official added.

Referring to the logistics agreement between Iran, Kazakhstan and Russia, Hassanzadeh added: “We should be able to use this opportunity in the field of transportation to promote the trade among the countries in the region.”

The ICCIMA head invited the head of the Kazakhstan Chamber and the businessmen of the country to visit Iran, and said: “Considering Iran's capabilities in the fields of technical and engineering services, the establishment of power plants, the development of petrochemical industries, food, agriculture and livestock industries, construction, Pharmaceuticals and medicine, tourism, handicrafts, information and communication technology and knowledge-based products, we can form good cooperation between the private sectors of the two countries.”

He pointed to the interest of Iranian private sector for investments in Kazakhstan and said: “We expect the Kazakh government to support Iran's private sector more.”

“Considering the solution of banking issues between Iran and Kazakhstan, especially in the fields of agriculture and livestock, there is a very suitable field for joint investments, which should be used,” he emphasized.

Onalbayev for his part pointed to the good political and economic cooperation between the two countries in regional organizations and said: "Good cooperation between the two countries has been established and is being formed in the field of cargo transit and sea, rail and land transportation which should continue.”

About 70 percent of the trade between the two countries last year was related to Iran's exports to Kazakhstan, and it is possible to work in the fields of production and supply of meat and agricultural products, petrochemicals and construction materials, to increase the volume of trade and balance it, the envoy said.

EF/MA