TEHRAN- The value of Iran’s non-oil export to Azerbaijan increased by 14.5 percent during the first ten months of the current Iranian calendar year (March 20, 2024-January 19, 2025), as compared to the same period of time in the past year, the spokesperson for the Trade Development Committee of the House of Industry, Mining, and Trade announced.

Ruhollah Latifi said that Iran exported non-oil commodities valued at $572.953 million to Azerbaijan in the ten-month period.

In late January, the 16th meeting of the Iran-Azerbaijan Joint Economic Committee was held with the participation of Iran’s Minister of Transport and Urban Development and Azerbaijan’s Deputy Prime Minister in Tehran.

According to the news portal of Iran’s Transport and Urban Development Ministry, the second day of the meeting took place on January 22, with the presence of Farzaneh Sadegh, Iran’s Minister of Transport and Urban Development, and Shahin Mustafayev, Azerbaijan’s Deputy Prime Minister.

The Iranian minister expressed her satisfaction with the renewed collaboration, stating, "I am delighted to meet again with the esteemed Deputy Prime Minister of Azerbaijan and his accompanying delegation. I hope this meeting marks the beginning of a new chapter in economic cooperation between our two friendly and neighboring nations. The government of President Masoud Pezeshkian is committed to expanding bilateral relations and removing obstacles to cooperation."

She added, "After a hiatus of over three years due to various circumstances, I am pleased that we successfully convened the 16th session of the Joint Economic Committee in Tehran. I hope that by following up on agreements in transportation, customs, energy, oil, gas, electricity, water, banking, preferential trade, investment, and other areas, we can open new avenues of collaboration and witness further growth in bilateral trade relations."

The Iranian head of the committee stated: "In 2023, trade volume between the two countries amounted to $487 million, with Iran exporting $473 million to Azerbaijan and importing $14 million. Over the first 11 months of 2024, bilateral trade rose to $583 million, with Iran’s exports to Azerbaijan at $570 million and imports at $12.9 million."

"The trade potential between our two countries exceeds these figures. A five-year roadmap should be developed to achieve a target of $10 billion in trade. In this context, I propose drafting a roadmap to resume negotiations for finalizing the preferential trade agreement, thereby expanding the volume of trade," Sadegh emphasized.

She highlighted transit cooperation opportunities, stating: "While notable steps have been taken in recent years to enhance this aspect of our relations, the current capacity in road, rail, air, and maritime transportation between the two nations is far greater than what is currently utilized."

Sadegh noted the necessity of resolving transit issues, proposing the establishment of a comprehensive transport committee and expert consultations to address these challenges.

Referring to completed and ongoing infrastructure projects, she said: "The second Astarachay Bridge was inaugurated last year, a significant step in advancing bilateral transportation. The automobile bridge over the Aras River in the Kalaleh region has made good progress, and we hope its construction will be completed by early spring 2025. The Aghband-Jolfa-Nakhchivan road project is also underway. Additionally, the Astara rail terminal is a critical transit project that requires joint efforts to resolve its challenges and fully realize its potential."

Sadegh further underlined the importance of regional cooperation, stating: "The trilateral meeting of transport ministers from Iran, Azerbaijan, and Russia to activate the International North-South Transit Corridor (INSTC) with a target of 15 million tons is a key regional initiative. I hope the upcoming meeting on January 28, 2025, in Moscow will result in agreements to enhance transit activities along this corridor."

She also highlighted energy cooperation, saying: "Energy is a strategic area of collaboration between our two countries. I hope issues related to electricity and water will see further development. Additionally, synchronizing the electricity grids for power transit is another joint project that requires solutions to overcome existing challenges."

Addressing the 16th meeting of the Iran-Azerbaijan Joint Economic Committee Amin Taraffo, head of the International Affairs Center at Iran’s Transport and Urban Development Ministry, announced a significant boost in trade between the two countries.

“Trade between Iran and Azerbaijan reached $480 million in 2023, and this figure has grown by 20 percent, reaching $580 million in 2024,” Taraffo said during the opening session of the meeting at the Espinas Palace Hotel.

The official highlighted the deep integration of the two nations’ economies, particularly in transport and infrastructure. Projects such as the Astara border bridge and the nearing completion of the Aghband Bridge were mentioned as milestones in bilateral cooperation. Additionally, efforts are underway to establish the Aras Corridor, a project designed to connect Azerbaijan to Iran via road and rail.

The meeting also covered collaboration in energy, including electricity, oil, and gas. Officials discussed solutions to shared challenges through expert groups, aiming to strengthen cooperation in banking, energy, and infrastructure.

Taraffo reiterated Iran’s commitment to advancing the International North-South Transit Corridor, targeting a capacity of 10 million tons of goods.

He noted the critical role of shared borders between Iran, Azerbaijan, and Nakhchivan in facilitating trade for regional countries.

He added that the two-day committee, resuming after a three-year hiatus, includes technical and expert discussions on economic, cultural, and transportation issues.

The outcomes will be finalized with the signing of an agreement between Iran’s Transport Minister Farzaneh Sadegh and Azerbaijan’s Deputy Prime Minister Shahin Mustafayev.

The meeting also reviewed the construction and operation of new border terminals and bridges to enhance connectivity.

Taraffo expressed hope that the talks would resolve existing challenges and lay the groundwork for expanded cooperation in trade and transportation.

In a related development, Iran’s Minister of Economic Affairs Abdolnaser Hemmati discussed the role of financial systems in boosting trade volume with Azerbaijan during a separate meeting with Mustafayev.

Azerbaijani officials pledged to follow up on banking and insurance matters to further enhance bilateral trade.

In another meeting with Mustafayev, Iranian Oil Minister Mohsen Paknejad emphasized the importance of sustained energy cooperation with Azerbaijan.

According to the Shana news agency, the meeting took place on January 21, with discussions centered on enhancing bilateral ties.

Paknejad highlighted that such meetings play a pivotal role in advancing relations between the two nations, particularly in energy.

“In Iran’s foreign policy, neighbors hold a special priority, and Azerbaijan occupies a unique position,” he said.

He also announced the formation of a joint task force to facilitate strategic and technical collaboration in the energy sector.

Mustafayev, in his remarks, noted that this was his second meeting with the Iranian oil minister in the past three months.

He emphasized the significance of reciprocal visits in fostering understanding of each country's capacities and infrastructure.

"The relations between Iran and Azerbaijan are founded on shared religious, cultural, and fraternal ties," Mustafayev stated, adding that Azerbaijani President Ilham Aliyev places great importance on these ties, which serve mutual national interests.

During a meeting between Paknejad and Mustafayev back in mid-October 2024, the Iranian official called for the formation of a joint working group in order to pursue and accelerate bilateral cooperation, especially in the field of energy.

During the meeting, Paknejad said the two countries have a lot of cultural, historical and national similarities, which will help bring the two nations closer to each other.

While emphasizing the improvement of cooperation between the two countries, he said that neighbors have a priority in Iran’s foreign policy and that the position of the Republic of Azerbaijan is special among them.

Stating that the field of oil and energy is one of the axes for the development of economic relations between the two countries, Paknejad said Iran welcomes any initiatives proposed by Azerbaijan to enhance the level of cooperation, adding that such cooperation requires the necessary infrastructure.

The deputy prime minister of Azerbaijan, for his part, said that the two neighbors have extensive relations, which are based on old roots.

Mustafayev also met with Iran’s Minister of Economic Affairs and Finance Abdonnasser Hemmati during which the Iranian side said the country is determined to expand its trade ties with neighboring Azerbaijan.

Hemmati said the size of trade between Iran and Azerbaijan, which is around $400 million per year, is very low and does not match the state of relations between the two countries.

“Azerbaijan has a special significance for us, we had some good talks on the role of monetary and banking systems in the expansion of trade,” said the minister.

Hemmati said he and Mustafayev had agreed in their meeting that communication between the banking and insurance institutions of Iran and Azerbaijan should expand to allow an increase in trade relations between the two countries.

Mustafayev also met Iranian Energy Minister Abbas Aliabadi.

During the meeting, the Iranian minister called for increasing electricity exchange with neighboring countries.

Mentioning that Iran and Azerbaijan’s power grids are already connected and the two countries are exchanging electricity, Aliabadi expressed hope that the level of exchanges will increase soon.

“The electrical connection between Iran and Azerbaijan is now established, and it is hoped that this will increase by the summer of next year; It is also suggested that negotiations be held between Russia, Azerbaijan, Iran, the UAE, and Saudi Arabia to expand cooperation in the electricity sector,” the minister said.

“Negotiations have also been held with Russia and it was decided to follow up on this issue in an upcoming meeting. The establishment of a power line between the two countries will be very beneficial for both sides economically,” he added.

During his stay in Tehran, Mustafayev also met and held talks with the Iranian Transport and Urban Development Minister Farzaneh Sadegh.

In this meeting, Sadegh called for the preparation of a roadmap to increase annual transit between Iran and Azerbaijan to 15 million tons.

“The development of relations with the Republic of Azerbaijan has a high importance in the foreign policy of the Islamic Republic of Iran, and I am confident that these relations will be further enhanced in the future and in line with the interests of the two countries,” she said.

The minister stressed that Iran is ready to develop relations with Azerbaijan in all sectors and the Transport Ministry is prepared to hold the two countries’ 16th Joint Economic Committee meeting in Tehran as soon as possible to review all areas of cooperation

Iran and Azerbaijan have agreed to establish a joint agricultural cooperation committee within the next month, the agriculture ministers of the two countries announced.

According to Mehr News Agency, Iranian Agriculture Minister Gholamreza Nouri Ghezeljeh and his Azerbaijani counterpart Majnun Mammadov discussed ways to enhance bilateral cooperation in the agricultural sector during a phone conversation on February 25.

Nouri Ghezeljeh stated that Iran is prepared to expand scientific and research collaborations, increase agricultural trade, and facilitate the transit of agricultural goods.

Mammadov emphasized the significant potential for cooperation between the two countries, stressing the necessity of forming a joint committee to advance collaboration in this sector.

The two ministers agreed that the joint committee will be established within a month, during which foundational agreements on various areas of agricultural cooperation and trade facilitation will be drafted and signed.

It is expected that an upcoming meeting between the Iranian and Azerbaijani agriculture ministers will mark a significant step toward further strengthening agricultural ties between the neighboring countries.

In recent years, Iran and Azerbaijan have strengthened their agricultural cooperation through various agreements and joint initiatives.

In 2020, the two countries signed a Cooperation Agreement focusing on veterinary and animal health, aiming to enhance collaboration in disease control, veterinary public health, and the exchange of technical expertise.

Additionally, both nations have engaged in collaborative projects to address environmental challenges affecting agriculture.

A notable example is their joint effort to combat climate change impacts in the Caspian Sea region.

This initiative includes climate adaptation planning at both regional and national levels, as well as the implementation of transformative projects aimed at enhancing urban resilience and agricultural sustainability.

Furthermore, Iran and Azerbaijan have partnered on hydroelectric projects along the Aras River, such as the Qiz Ghalaesi Dam, inaugurated in May 2024.

These projects are designed to provide irrigation for agricultural lands, thereby boosting productivity and supporting local farming communities.

These collaborative efforts underscore the commitment of Iran and Azerbaijan to strengthen their agricultural sectors through shared resources, knowledge exchange, and joint infrastructure projects, fostering economic growth and food security in the region.

MA