Iran Chamber vice president calls for shift toward value-added exports and stronger production

Iran should shift its foreign trade strategy from simply increasing export volumes to developing export value chains and generating greater domestic value added, Iran Chamber of Commerce Vice President Payam Bagheri said on Saturday.

Speaking at a strategic meeting on Iran’s foreign trade at the Iran Chamber of Commerce, Industries, Mines and Agriculture, Bagheri said export development depended on protecting domestic production, removing infrastructure bottlenecks and improving the support systems needed for businesses to compete in international markets. Despite Iran’s industrial and production capacity and strong demand in neighboring markets, the country has yet to fully realize its foreign trade potential, he said, adding that businesses needed to deliver goods to customers quickly, at the lowest possible cost and through suitable routes, while receiving payments securely. Bagheri said foreign trade depended on an interconnected system encompassing banking, logistics, economic diplomacy and supportive regulations, arguing that weaknesses in any of these areas could prevent potential commercial opportunities from translating into actual transactions. He described protecting production and industry as a prerequisite for export development, noting that manufacturers relied on trade to secure raw materials, intermediate goods and equipment. Economic stability, predictable policies and reliable infrastructure were also essential for businesses to plan and maintain operations, he said. Inadequate energy supplies, electricity cuts or rationing, insufficient support and limited working capital could undermine production, making incentives alone insufficient to sustain industrial activity, Bagheri added. He called for trade policies to prioritize activities at the later stages of production, where greater value can be generated, saying small and medium-sized enterprises could increase their contribution by producing higher-technology goods and joining the final stages of value chains. Imports, meanwhile, should focus on raw materials and intermediate goods that can be processed domestically into higher-value export products, he said. Citing Trade Promotion Organization figures, Bagheri said the value per ton of Iran’s imports was about four times that of its exports, highlighting the country’s reliance on lower-value-added export products. He also urged policymakers to assess trade performance through net export earnings, domestic value added and the benefits retained in the national economy, rather than export volumes alone. Export associations and the Iran Chamber of Commerce could help develop stronger export value chains, he said.