Iran's Pivot to the East

Bijan Khajehpour

Jul 19, 2013

Visitors from Iran takes pictures outside an exhibition hall of China Import and Export Fair, also known as the Canton Fair, in the southern Chinese city of Guangzhou October 17, 2011. Exporters at China's largest trade show, the Canton Fair, say a darkening economic outlook in Europe and the United States is weighing on orders for Chinese-made goods from Western buyers, potentially boding ill for China's growth prospects. REUTERS/Bobby Yip (CHINA - Tags: BUSINESS) - RTR2SQQZ — Visitors from Iran take pictures outside an exhibition hall of the China Import and Export Fair, also known as the Canton Fair, in the southern Chinese city of Guangzhou, Oct. 17, 2011. Exporters at China's largest trade show, the Canton Fair, say a darkening economic outlook in Europe and the United States is weighing on orders for Chinese-made goods from Western buyers, potentially boding ill for China's growth prospects. — REUTERS/Bobby Yip

Iran was traditionally a trading partner of Western economies. Even post-revolutionary Iran relied more on trade with Western rather than Eastern partners or developing countries. However, in the past few years, stringent sanctions imposed by Western governments, as well as the growth of Eastern trading partners, have changed Iran's trading patterns. This article will take a closer look at two important trends: the transformation of Iranian exports and the changes in Iran’s trading partners.

The included table summarizes the country's trade statistics over the past two Iranian calendar years, plus a projection for the current Iranian calendar year, which ends on March 20, 2014.

Oil and gas exports initially took a dive in 2012 due to EU sanctions on the purchase of Iranian oil and US sanctions on the Iranian Central Bank, which undermined exports to non-European buyers of Iranian oil. However, growing gas and gas condensate exports will be the main factor behind the growth of petroleum exports in the current Iranian calendar year.

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Iran's Pivot to the East

Iran's trade patterns have shifted in recent years as a result of sanctions, making Asia a new market for Iranian goods.

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