Iran's trade turnover with BRICS member countries has reached approximately $60 billion per year, according to Mohammad Sadegh Ghanadzadeh, Deputy Head of Iran's Trade Promotion Organisation. This development highlights the depth of Tehran's economic integration with the bloc, despite facing years of Western sanctions. Ghanadzadeh's comments, carried by IRNA and TV BRICS, provide a fresh snapshot of Iran's economic ties with BRICS.
Iran's trade with BRICS member countries involved exporting $23 billion worth of goods and importing $37 billion worth of goods from member countries last year. The significant trade volume is notable given the challenges posed by sanctions and transportation issues. Ghanadzadeh emphasized that Iran has maintained economic exchanges with BRICS member countries and should leverage opportunities to expand trade relations.
The relationship between Iran and BRICS still has considerable room to grow, according to Ghanadzadeh. He identified areas for expansion, including transit, trade facilitation, customs, coordination on standards, and payment mechanisms. The use of local currencies in bilateral trade between member countries could contribute to the development of broader financial mechanisms among BRICS members.
This push towards de-dollarisation aligns with a wider trend within BRICS, a theme Iranian officials have raised repeatedly since joining the bloc in 2023. Despite the large volume of trade, Ghanadzadeh noted that the full potential of Iran's membership in BRICS has yet to be realised in the country's economy. This admission suggests that headline numbers do not necessarily translate into transformed economic fortunes at home.
Iran's non-oil trade with BRICS stood at around $38 billion in 2022-2023, with China accounting for the lion's share. The jump to a $60 billion total trade figure, spanning oil and non-oil exchanges, indicates a deepened relationship since full membership took effect. Agriculture is a significant area of trade, with roughly $25 billion of Iran's agricultural trade running through BRICS countries.
Iranian exporters and officials have highlighted the importance of BRICS membership in expanding trade relations. The most recent BRICS Summit provided a platform for Iran to press for improvements in international transport corridors, trade expansion, financial cooperation, and mutual settlement mechanisms. Discussions centred on developing transit routes, simplifying trade procedures, and improving payment systems.
The integration of Iran into BRICS is a work in progress, with steady but incomplete progress. Iran has found in BRICS a set of partners willing to keep trading despite political pressure. The $60 billion figure is evidence of this, but converting membership into full economic advantage remains a challenge. Key areas for improvement include smoother payments, better transport links, and deeper currency cooperation.
Key points
- Iran's trade with BRICS member countries has reached $60 billion annually.
- The relationship between Iran and BRICS still has considerable room to grow.
- Iran's full potential in BRICS has yet to be realised in the country's economy.
