The Commerce Chambers of Iran and Australia convened a session, attended by a 30-strong Australian delegation, led by the chairman of the joint Australia-Iran Chamber, Charles Statt. Also present at the meeting were the head of Iran-Australia Chamber, Asadollah Asgarowladi, and the chief of the Export Promotion Centre of Iran (EPCI), Mr Khosrotaj.
Noting the strategic position of Iran among its neighbours, Mr Asgarowladi said that Iran assisted by its huge market, ample natural resources, and extensive manpower is potentially capable of becoming a major economic centre in the Middle East.

"Aspiring to promote its economy during the Second Development Plan, Iran inaugurated many development projects in road-making, telecommunications, energy, mines and industry, while the Third Development Plan focuses on the centralisation of economic activities," he said.
By pointing out that Australia with an area of 8 million kilometres, is home to a population of 18 million, he declared Australia as a potentially good market for Iranian goods.
"Iran's imports from Australia surged to 535 million dollars in 1997, from 291 million in 1991," he said, adding, "in the first two months of the fiscal 1998 alone, the volume rose to 285 million dollars."
The Australian chief of the Joint Chamber, Charles Statt, stated that currently, Iran-Australia trade mainly centres around wheat, meat, dairy products, sugar, charcoal, iron and minerals, and the two nations have become good trading partners.

He continued by pointing out that Australia boasts a powerful economy, enjoying mammoth potentials and expertise in the areas of construction, telecommunications, finance and wholesale trade. "With 230 billion dollars of trade last year, Australia's gross national product (GNP) stands at 563 billion dollars. Unaffected by the Asian financial crisis, Australia's rate of inflation hovers between 2 and 5 percent," said Mr Statt. "Australia's economy is dependant on international trade. The key to Australia's success in heading off the Asian financial crisis was that it exported its commodities to other world markets including Iran," he added.
The Australian Official asserted that Iran is one of Australia's leading trade partners. "Australian companies are willing to embark on joint ventures with their Iranian counterparts in mining, oil and engineering services," he added.
Another major figure at the meeting was the EPCI chief, Mr Khosrotaj, who discussed the traditional Australian export of meat to Iran, in return for imports of agricultural products such as pistachio, date, raisin, apricot, cumin and saffron. During the years, he said, Australia's exports to Iran have exceeded its imports.

"The Islamic Republic of Iran has envisaged the processing of raw farm products and minerals, into finished derivatives for exports. Such an outlook depends on a robust presence in the market, and requires persistent efforts to enhance the added value of farm products and minerals", said Mr Khosrotaj, who is also deputy commerce minister. Additionally, he said, the government deems the expansion of technical-engineering service exports as a top-priority.
The export chief stipulated that in order for this trend to take momentum, "we need to pinpoint major areas of co-operation with Australian investors, for the expansion of processing industries, and the manufacture of competitive goods." He added that Iran considers boosted co-operation in telecommunications, information technology, medicine and security matters as a second-degree priority.

According to the deputy minister, within the national economic reconstruction plan, new reforms and initiatives have taken place, including steps toward the substitution of an import-dependant economy with that of an export-dependant economy, the manufacture of competitive products, and a reduction of trade tariffs in the foreseeable future. He also outlined other schemes envisioned in the national reconstruction plans in terms of the foreign exchange rate, regulation on the trade of goods, and the use of the private sector's capabilities for the growth of the potentially lucrative tourism industry. He concluded such reforms will create jobs and boost revenues, while spurring Australia and other countries to expand their trade ties with Iran.

A scene from meeting of the Common Chambers
of Commerce of Iran and Australia

Also at the meeting, the chief executive officer of the Middle East and Indian Ocean Group Stride, Jerald Lenzaron, conceded that traditionally exports have been that of wheat in return for fruits, spices and caviar. However, he said, the two countries have worked out new ways, including Australian investments in Iran, in a bid to pick up the level of mutual relations.

While expressing delight over the presence of Australian entrepreneurs at the meeting, Mr Lenzaron concluded that with a better understanding of each other, traders can more effectively reach practical and positive results. He felt confident that Iran attends to its trade balance, and stressed the need in the continued freedom of trade and the use of opportunities, in spite of sometimes resulting in certain imbalances. He predicted that further investments in Iran can offset the imbalance and bring about improved technology, employment and foreign exchange for Iran.

Asked to comment on the Asian financial crisis, he said, "let us view the Asian crisis as a granted opportunity for the two countries to put more effort in locating potential areas of trade, and obtaining a clearer understanding of each others' respective markets". He saw little cause for alarm, due to Iran's sizeable deposits of natural gas, and great potentials in the mining sector.

Mr Lenzaron reported that the ANZ banking group has earmarked a medium-term loan of 250 million dollars and a short-term credit of 50 million dollars for the implementation of the projects. He finally expressed hope that the collaboration between Australia's Exports Financing and Insurance Company (EFIC), and the Central Bank of Iran (CBI), will prepare the grounds for the financing of joint ventures.