The Preferential Trade Agreement (PTA) concluded between Turkey and Iran came into force on Jan.1, the customs taxes imposed on 265 products will be lowered by a great degree with some of the customs taxes imposed on certain products to almost zero percent.

According to the Preferential Trade Agreement, 140 products from Turkey and 125 products from Iran, in total on 265 products, customs taxes have been decreased and are currently working for more. Economy Minister Nihat Zeybekci said that they will also strive to increase the number of product types from 265 to 290, even to 300 for which low or zero customs taxes are applied.

The agreement has been dubbed a "great step" especially given that both countries aim to increase foreign trade volume, which is currently around $13-14 billion to $35 billion towards the end of 2015.

Two technical committees will be established, consisting of experts from both countries with the committees set to hold monthly meetings in order to supervise the progress of the agreement and to offer solutions for any possible problems that may occur during the implementation thereof.

Underlining that this was only the start of a productive cooperation in the field of trade between the two countries, the Turkish Minister noted that they have been negotiating on various issues including supporting joint ventures and investments between the two countries, protection of investments, facilitation of trade, increasing cooperation between customs administrations, implementation of a uniform customs clearance procedure and taking precautions for eliminating current problems arising in transportation and deliveries.

The technical committees are scheduled to hold their first meeting in January and a large Turkish committee will be organizing a business forum at the beginning of February. There is already the textile fair scheduled and this new forum will be like an additional mini fair. They again will hold meetings next year, just like they did this year and hopefully, they will achieve great accomplishments in trade and economy of Turkey and Iran, said Zeybekci.

While efforts for rapidly eliminating and taking precautions against possible obstacles that may occur during the improvement process of trade relations between the two countries are ongoing, a Turkish Trade Center will be established in Tehran to facilitate these efforts.

They are currently in the process of establishing two institutions in Iran. First of all, their under secretariat of Commerce will be reinforced, evolving into a center with eight to 10 employees. Further, they will establish a center that hosts various Turkish firms and their offices that will receive support from their ministry. As a result, companies will get the opportunity to establish branches in Iran will be able to come as a part of group and engage in activities.

According to Zeybekci, the under secretariat of Commerce in Tehran will be strengthened and the new Turkish Trade Center to be established will assume an active and crucial role in preventing such problems.