Iran is one of the most interesting export destinations with high potential for expansion of Thai natural rubber and related product industry. Iran has a total population of around 80 million. It has a rich abundance of natural resources, including oil, natural gas, coal, chromium, copper, steel, lead, manganese, zinc, sulfur, etc. It is also home of several winter plants. Iran shares the border with Kazakhstan, Uzbekistan, Azerbaijan and CIS countries with a total population of hundred millions, making Iran a center of distribution of goods to neighboring countries. Key Thai export goods to Iran comprise of rice, TV, air conditioner, natural rubber, computer, steel, iron, cars and autoparts, etc. Natural rubber and related products become more demanded, being raw material for other related industries in Iran, including automobile, tyres and electronic appliances.
Iran is the Middle East’s biggest rubber consumer with accelerated growth. In 2013, Iran is the world’s 25th largest consumer of natural rubber, importing 56,300 tonnes of natural rubber for domestic consumption. During the first 11 months of the current fiscal year (March 2013- February 2014), Iranian import value of natural rubber reached US$222,290,930. The top source countries of Iranian natural rubber imports include UAE, China, Japan, Thailand, Turkey, Taiwan, Sri Lanka, Singapore, Kuwait, Malaysia, Hong Kong, India and Vietnam. UAE is Iran’s biggest source country of rubber imports with the value of US$ 63,905,523, followed by China (US$ 43,099,928), Singapore (US$ 25,497,327) and Malaysia (US$24,642,508), data from the Islamic Republic of Iran Customs Administration. Iranian import value of Thai natural rubber in 2013 was THB 681,968,794, data from Thailand Customs Department.
One of the major problems faced in trading with Iran is political constraint due to the restriction by USA. Iran is not considered a member of WTO. As credit restriction by USA obstructs Iran from outgoing remittance, financial limitation is also a major problem; transaction in US dollar is not made possible. Additionally, Iran applies highly restricted trade rules, complicated import regulations and high import tax, data from Thai Trade Center, Tehran.
From the above data, it suggests that the vast economic potential and growth of Iran can affect ASEAN economic growth in general and rubber industry in particular. Thus, Thai government and private sector shall pay attention to trade expansion and seek solutions to obstacles in the path of exports. In this regard, Department of International Trade Promotion invited representatives of the Thai Rubber Association to participate in a mission to Iran during 16-20 February 2014. Mr. Prame Pandey (Thai Hua Rubber Company Limited) represented the Association in the mission. The key activities included visits to key government agencies, namely Trade Promotion Organization, Central Bank of Iran, Iran Chamber of Commerce and Iran Association of Importers. The mission also surveyed Kashani Passage, the largest autopart wholesale and retail market in Tehran. Additionally, the mission paid a visit to executive directors of Iran Khodro group (IKCO), the biggest car and autopart manufacturers in Iran, Gharb Steel Group, the biggest steel autopart manufacturer in Iran and IRISL Group, a big container line company group in which Iranian government is a stake holder. The mission also joined a business matching session between Thai and Iranian businessmen.
All these activities contribute to closer trade corporation and relationship, which is an important part of the trade and investment expansion of Thai rubber industry to Iranian market and its neighbouring countries.
Opportunity of Thai Rubber in Iran