Nournews: As Iran deepens its economic relations with regional and international partners, U.S. President Donald Trump recently signed a new executive order, initiating a new phase of maximum pressure policy against Iran. This action is designed to limit Iran’s economic pathways and make it more difficult for the country to access international financial resources.
However, Iran’s approach is not limited to a specific economic bloc, and efforts have been made to consider various paths for trade development. Expanding economic cooperation with East Asia, Eurasian countries, and emerging markets in Africa and Latin America reflects a policy aimed at reducing the country’s vulnerability to Western economic pressures.
New horizons for Iran's economic cooperation
In recent years, Iran, by joining BRICS, the Shanghai Cooperation Organization, and the Eurasian Economic Union, has prioritized multilateralism. These organizations, with the presence of major economic powers, provide broad opportunities for trade, investment, and access to new markets. Utilizing the capacities of these institutions not only helps reduce Iran’s dependency on the Western economy but also creates an alternative path for export growth and financing of the country’s developmental projects.
Economic cooperation with member countries facilitates the expansion of preferential trade, the development of financial exchanges outside the SWIFT system, and reduces the effects of banking sanctions. Establishing secure trade routes, using national currencies in bilateral transactions, and strengthening monetary agreements are among the actions that can contribute to the stability of Iran's foreign trade.
Iran’s logistical capacities and development of trade routes
Iran’s geostrategic position has enabled it to take advantage of key transit routes. The North-South Corridor, as one of the most important trade routes, connects Iran to Russia, India, and Eurasian markets. The Anzali Free Zone, with its port and maritime transport capabilities, can play a significant role in expanding trade with Russia and the Caspian Sea countries.
Developing rail and port infrastructure, including the Rasht-Astara railway, completing the Caspian port, and increasing loading and unloading capacity in the country’s northern ports, could significantly boost transit and export volumes in Iran. Activating trade routes connected to China, Kazakhstan, and Turkey will also open new paths for non-oil exports.
Challenges facing Iran in regional trade development
One of the most important obstacles is the weakness of logistics and transport infrastructure. Many key projects, including the development of the rail network and port equipment, remain incomplete and require significant investment to be completed and operational. The absence of an integrated system for managing transportation and weak coordination between different sectors have reduced efficiency in regional trade.
Legal barriers and administrative complexities have also posed challenges for foreign trade. Lengthy processes and heavy bureaucracy in customs have increased costs and reduced the competitiveness of Iranian goods in international markets. Trade laws need to be reviewed to ease trade routes and create new opportunities for exporters.
Economic policy instability is another fundamental issue. Constant changes in trade policies have created uncertainty among domestic and foreign investors and hindered long-term planning for trade development. To address this issue, there is a need to develop sustainable strategies and coordination between the country’s economic and commercial institutions.
A lack of financial resources and investment is another challenge that has hindered the development of Iran’s trade infrastructure. The absence of suitable models for attracting foreign investment and financing major projects has caused many developmental plans to progress slowly. Offering economic incentives to attract investment can play a key role in addressing this issue.
Furthermore, geopolitical challenges and international developments also affect Iran’s trade flow. Regional tensions and the sanctions policies of the U.S. and the European Union have placed additional pressure on the country’s trade routes. To cope with this situation, Iran must pursue a more active economic diplomacy and seek to strengthen strategic cooperation in the areas of trade and transit.
Necessary measures to overcome challenges
One of the key priorities is to accelerate the development of transport and logistics infrastructure. Completing key projects such as the Rasht-Astara railway, expanding northern ports, and establishing modern logistics terminals could strengthen Iran’s trade routes.
Reforming customs and trade processes is another action that should be addressed. Digitization and reducing administrative complexities will increase the speed of foreign trade and reduce transactional costs.
Establishing stability in economic policies can boost investor confidence. The government must formulate a long-term strategy for regional trade development to provide a clear outlook for traders and investors.
Attracting foreign investment, especially in transit infrastructure, should be prioritized. Providing economic incentives and guaranteeing investment security can pave the way for economic development.
Finally, expanding economic diplomacy and signing new trade agreements can create new paths for Iran's trade. Ongoing negotiations with trading partners and expanding regional and bilateral pacts will play a crucial role in neutralizing sanctions.
NOURNEWS