Economic relations between Iran and Bangladesh
The first Joint Commission meeting between Iran and Bangladesh happened during the visit of Ziaur Rahman, the then President of Bangladesh on March 7, 1977 to Iran. At the end of this two-day meeting an MOU was signed between the two sides. It was agreed in this MOU that a standing committee on trade, transportation and communications, banking and insurance, agriculture, industries as well as culture and human resources to be established. This committee was tasked to report every six months on the development of the bilateral cooperation in various Fields pertaining to commerce-economy and technical matters along with its proposals to the Ministers’ Joint Commission.
On July, 16th 1976, an economic delegation led by Qhazi Nurolhagh (member of the consultative council of the President) visited Iran, as the result of which a trade agreement was signed between the two countries. Three years earlier an oil deletion from Bangladesh had visited Iran and had talks and as the result it was agreed that 300 thousand tons of crude to be exported to Bangladesh.
In the May of 1976 an Iranian delegation visited Bangladesh to recruit physicians, technicians and expert manpower. At the end of the same year a number of Bangladeshi experts were recruited by the Iranian Navy.
In early 1977 a delegation from Iran paid a visit to Bangladesh in order to examine the possibility of bilateral cooperation and to conduct technical studies. In the same year, a 10-strong deletion comprised of the private and public sector representatives of Iran visited Bangladesh to expand upon trade relations.
Based on the agreement concluded in the first Joint Iran-Bangladesh Commission, a three-man delegation from Bangladesh came to Tehran in June 1977 to negotiate with the national Airline Company of Iran. In these talks, issues such as ceding the responsibility of selling the air tickets to each other as well as creating links at the converging points of the two countries were discussed.
In the same month a delegation from Iran visited Dhaka in order to do follow-up on the proposals set forth by the first Joint Commission of the two countries and after holding talks for days, ended its mission with signing of the minutes.
Also in the same year, an Iranian delegation headed by the then Minister of labor journeyed to Bangladesh and signed an agreement on dispatch of workforce from Bangladesh to Tehran. Also in the same year, an agreement was signed for the allocation of a loan worth 12.5 million dollars to Bangladesh. The interest rate of the loan stood at 2% and was utilized for the implementation of the chemical fertilizer plan of Ashuganj within the framework of the World Bank grant to Bangladesh.
After the victory of Islamic Revolution in Iran, talks were held in the area of developing economic relations between the two countries which led to the visit of an economic delegation headed by the deputy Minister of Commerce of Iran to Bangladesh. Hence, an MOU was signed between the two sides in the January of 1983. According to the said MOU, it was agreed that the government of the Islamic Republic of Iran would positively examine the proposal set forth by the Bangladeshi government to receive 100 thousand barrels of oil in the first six months of 1983. Bangladesh also asked Iran for technical assistance in the area of gas and oil exploration which was accepted by Iran. In April 1983, General Sultan Mahmoud the then Minister for Oil and energy of Bangladesh visited Iran for three days and met with the relevant authorities on the expansion of relations in various areas including economic and trade relations
In July 1983, the Foreign Minister of Bangladesh visited Iran. In his talks too the issue of expansion of economic ties between the two countries was raised and both sides agreed upon holding the joint economic commission which was also underscored in the joint statement released afterwards.
Several months later, a delegation headed by the Deputy Minister of Post, Telegraph and Telephone of the Islamic Republic of Iran paid a visit to Bangladesh and hence an MOU was signed in the field of purchasing telephone cables from the country. In June 1984, the Commerce Minister of Bangladesh arrived in Tehran. At the end of his visit a document was signed according to which the need for economic relations ties and volume of trade was underscored and both sides agreed to identify potentials for boosting relations.
It needs to be mentioned that Iran has sent several aid cargoes to Bangladesh on many occasions at the time of natural disasters. In the typhoon of the year 1991, Iran sent a cargo of foodstuff and essentials to the people of Bangladesh by plane.
In 1996, the third Joint Economic Commission Meeting of Iran and Bangladesh was held in Dhaka. Then in 2002 the agreement to promote and support foreign investments between the two countries was singed and a year later an agreement on trade shipping was signed. In 2006, the fourth Joint Economic Commission Meeting of Iran and Bangladesh was held and the draft of Preferential Trade Agreement was reached and several MOUs on tourism, commerce, banking, customs, industries, gas and petrochemicals and transportation was signed. According to the Minister of Housing and urban Development of Iran as the chair of the Iranian side, one of the foremost aspects of this cooperation was the decision to purchase wagons from Iran in relation to the 44 million dollar loan of the Islamic Development Bank to renovate the rail fleet of Bangladesh.
Also in the same year and on the sidelines of the D8 Summit held in Bali of Indonesia, two agreements of PTA and customs cooperation were signed by the two sides. However, the PTA was not accepted in Bangladesh by the relevant authorities and this agreement was carried out in 2012 amongst other members of D8.
In 2013 the 5th Joint Economic Commission Meeting of Iran and Bangladesh was held in Dhaka. The Ministry of Mines, Industries and Commerce of Iran and the Ministry of Finance of Bangladesh were responsible of this meeting.
In the year 2014, the minister for industries of Bangladesh visited Iran. A year later the Energy Minister of the country visited Iran to meet with his Iranian counterpart. In this visit, consultations were made for the possibility of the continuation of the “Peace Pipeline” after passing through Iran, Pakistan and India. However and with intensification of international sanctions against Iran from one side and the severe economic dependency of Bangladesh on the west and the Persian Gulf countries on the other, the long-term projects between the two countries were adversely affected. In 2016, the Industries Minister of Bangladesh visited Iran and in meeting with the Agriculture Minister of Iran and the Chairman of the Chairman of Commerce of Iran asked for the promotion of economic transactions between the two countries and the implementation of trade agreements and utilization of both countries’ potentialities.
In 2017 and with the inflow of Rohingya Muslim refugees into Bangladesh, the Iranian Foreign Ministry dispatched 40 tons of aid comprised of medicine, sustenance and food to rush to the help of this oppressed community.
In 2019 the Iranian Foreign Minister attended the IORA Conference in Bangladesh and also met with the Honorable Prime Minister, Parliament Speaker and Foreign Mister of Bangladesh in Dhaka and held talks on promoting economic, political and cultural ties.
Note:
Tehran’s Chamber of Commerce and Trade Promotion Organization are responsible for exports/imports data but sometimes their data differ from one another. The same is true when it comes to Bangladesh:
According to the data of Tehran’s Chamber of Commerce, since 2009 forward, the volume of trade has been as follows (trade has mostly been in favor of Iran. Most of Iran’s exports to Bangladesh are petrochemicals, minerals and cement and bitumen in recent years and the imports from Bangladesh are jute, textiles and garments:
|
2019
|
2018
|
2017
|
2016
|
2015
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
83
|
118
|
134
|
126
|
139
|
101
|
94
|
115
|
88
|
85
|
84
|
Source: Trade Promotion Organization
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First 5 months of 2020
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2019
|
2018
|
2017
|
2016
|
2015
|
2014
|
2013
|
2012
|
2011
|
Year
|
|
7.96
|
46
|
74
|
77
|
73
|
102
|
71
|
38
|
64
|
21
|
Exports
|
|
13.26
|
37
|
28
|
54
|
33
|
39
|
37
|
56
|
52
|
68
|
Imports
|
|
5.3-
|
9
|
46
|
23
|
40
|
63
|
34
|
18-
|
12
|
47-
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Balance of Trade
|
|
21/12
|
83
|
102
|
131
|
106
|
141
|
108
|
94
|
116
|
89
|
Volume of Trade
|