1. 19 December 2016 Institute for Trade Studies and Researches(ITSR)
In The Name of God Current Status and Main Challenges of Trade Policy in Iran (Findings and Results of the Trade Policy Research Project)
19 December 2016
Institute for Trade Studies and Researches(ITSR)

2. The main scope of the project
The theoretical foundations of trade policy and its evolution(chapter 1)
A comparative study of the experiences of other countries in the area of trade policy(chapter 2)
The review of the fundamentals of Iran’s trade policy and its results and achievements in the last five decades(chapter 3)
Pathological study of Iran’s trade policy and some solutions proposed(chapter 4)

3. The theoretical foundations of trade policy
Inward oriented strategies
Import substitution strategy
Infant industry protection
Government intervention via direct investment in production and distribution
trade controls
Strategic Trade Policy
Strong linkage between industrial policy & trade policy
Outward oriented strategies
Export development strategy
Overcoming the limitations of the domestic market scale
Benefiting from the economic advantages
Enhance economic efficiency
Exchange rate devaluation, trade liberalization, Attracting FDI
Efficient allocation of resources and prices
Global Value Chains(GVCs)

4. Findings of Comparative Studies
Scope
10 countries ( US, EU, Japan, China, Mexico,
Brazil, India, Russia, Turkey and Vietnam )
Results
Good function of trade policy needs :
Coordination and coherence of macro economic policies
Good relation and trust between
people and government
public and private sectors, professional communities and policy makers

5. Findings of Comparative Studies
All studied countries have experienced a period of high level of protectionism.
Successful cases used protections:
Only for targeted industries
with limited time
Unsuccessful ones:
Untargeted protection
prolonged protection
All countries gradually have lowered:
Non tariff barriers via tariffication
Average tariff rates,
Except for sensitive products

6. Findings of Comparative Studies
Recent experience shows that:
Governments are investing in horizontal sectors than vertical ones( educations, training, improving basic infrastructure,…)
let the new technology to choose the promising sectors
More attention to Global Value Chains
Via membership in RTAs Regional
Enhancing trade facilitation

7. Pathological scope of Iran’s trade policy study
Targets
strategies
Tools

8. Diagnostic problems in Iran’s trade policy targets & strategies
No clear definition among:
Policy makers
Legal documents
Trade administrators
Lack of a documented evident for trade policy & strategies
Lack of coherence between trade policy and other macroeconomic policies
Fiscal, monetary and budget policy
Foreign exchange policy
Political relations
Domination of political visions over economical ones
Ambiguities about industrial & technological policies and their priorities
Instability of policies due to fluctuations of resource based economy and external shocks
Failure coordination between various governmental bodies and organizations

9. Diagnostic problems in trade policy tools
Institutional weakness
Lack of knowledge and professional expertise in the field of trade policy issues
Contradictions between laws and regulations
No Unity in trade administrations & managements
Lack of modern trade procedures & tools
Tariff policies
High tariffs
Instability of rates and laws
Weakness of structure and organizations
Non transparency
Lack of predictability
General inactive protection in many sectors
Non-tariff policies
frequency of non tariff barriers
Lack of transparency
Weakness in pre-notification of new rules and regulations and its changes

10. SOME FACTS AND FIGURS OF RECENT TRADE REGIM

11. Average tariff rates:(2005-2015)

12. Average tariff rates in the region

13. Average tariff rates in the region: Agriculture

14. Average tariff rates in the region: Industrial

15. Simple & weighted averages)2015)
Simple Average
Products
7.8
29.04
Agriculture
10.47
17.9
Industry
9.86
19.68
All

16. Comparing Iran's Average Tariff Rate with Average Tariff Rate of the World( 143 Countries)
منبع: كتاب مقررات صادرات و واردات 1394 ج.ا. ايران و گزارش World Tariff Profiles سازمان جهاني تجارت.

17. Non-tariff barriers situation
Temporary import bans
Import licensing for most products
Standards :National treatment compliance problem
Dual exchange rate

18. Challenges of Trade Policy In Iran
Lack of clear concept of national benefits and trade policy roles among the stakeholders
Disintegration of trade policy and development plans
Persistent mentality of Import substitution versus export-promotion and GVCs approach.

19. Challenges of Trade Policy in Iran
4. Weakness in Regionalism
5. Lack of Coordination among different stakeholders
6. Barriers of active participation in Global value chains(sanctions)

20. Challenges of Trade Policy in Iran
7. Agreeable selection for Sensitive products
8. Neglect of Role of services in the whole economy
10.Lack of a planned program as a Prerequisite for accession to the WTO

21. Thank You for
Your Kind Attention