Home > Article > Turkey comes closer to Iran: Pakistan must emulate

Turkey comes closer to Iran: Pakistan must emulate

Turkey comes closer to Iran: Pakistan must emulate

Iran and Turkey are coming closer. Turkish businessmen are  picking up deals in various industries in Iran. The Islamic Party in Turkey has made Turkey Turkey the 17th largest economy in the world, giving it unprecedented clout in world affairs and the Muslim world. Turkey is building a $20 billion train line from Islamabad via Tehran to Istanbul. Turkish businessmen are on the prowl in Pakistan with various projects in the making. Pakistan must take advantage of the Turkish affluence and link up to Anakara at a faster pace. In a Post-US Afghanistan, it is obvious that Pakistan and Afghanistan will become close allies. The future of the region is the ECO.

  • Turkey fosters diplomatic, business tie with Iran
  • Turkish investors eager to buy into Iran’s mostly government-owned textile, machinery and automotive industries

ISTANBUL: Turkey wants to triple its trade volume with Iran within five years, Turkey’s prime minister told businessmen on Thursday, at a time when sanctions are scaring off Western investors from the Islamic Republic.

Prime Minister Tayyip Erdogan and Iranian First Vice President Mohammad Reza Rahimi oversaw the meeting which brought together over a hundred businessmen, including Turkish investors eager to buy into Iran’s mostly government-owned textile, machinery and automotive industries.

“Our bilateral trade ties have reached $10 billion … When we take away the barriers to trade between ourselves, when we complete our preferential trade agreement we can reach a bilateral trade volume of $30 billion in five years,” Erdogan told the businessmen from Turkey and Iran.

Numerous rounds of sanctions on Iran by the UN, the US and the European Union have hit the Islamic Republic, discouraging investment in its huge natural gas reserves as well as its banking sector. Turkey on the other hand has fostered diplomatic and business ties with Tehran. A trade agreement between the two countries is set to expand business ties even further.

Analysts say Turkey is seeking to capitalise on the diplomatic risks it has taken in backing Iran while the West piled on sanctions. Erdogan and Brazilian President Luiz Inacio Lula da Silva brokered a uranium swap deal earlier in the year that they hoped would stave off sanctions and ease fears in the West that Iran’s nuclear programme was a front for creating weapons.

But it was not enough to stop the UN, EU and the US from imposing new sanctions on Iran. Iranian privatisations, seen starting by some Turkish businessmen as early as 2011, are also attracting interest. “This is a big opportunity for Turkey. Finance and trade that was carried out by UAE before the sanctions can be taken over by Turkey,” said Mehmet Koca, member of the executive board of the Turkey-Iran business group.

Turkey and Iran shared a bilateral trade volume of nearly $10 billion in 2008, 80 percent of which were Iranian exports to Turkey, mostly in the form of natural gas. Iran supplies Turkey with one third of its gas needs. Reuters

Mr. Haq adds:

Why must the old world trade in accordance with the new world – The Western World. Why must they be dictated to and be unable to provide their goods and services to anywhere in the world.

While amongst Europeans and with Americans there exists Free Trade Agreements and low tariffs why must there be higher tariffs for other nations to engage in their markets or for that matter to trade in “our own common markets”.

Asian and Middle Eastern countries must therefore have a trading block like they once had, where they trade with each other freely and without any repercussion from the Western Markets.

Today it is Asia and the Middle East that has higher disposable income, money in their pockets to buy affordable quality, rich products.

Why must these nations import when they can build and sell from within or grow and sell from within.

Pakistan should emulate and penetrate Iranian Markets and Iran should also equally penetrate Pakistani Markets. If Turkey, Iran & Pakistan set up a trading block alone and traded with each other exclusively then these nations would be self sufficient and not require anything from anywhere else.

If they created such a market, then this will be welcomed across the Middle east and Asia and many would flock to be part of this trading block.

This will reduce the reliance on European Markets and the European Market would not see other markets as subservient but equal.

I may be lacking the economic jargon to explain this properly but Logically it makes sense.

The future of Turkey and Iran are the ECO.

Categories: Article
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: