Iran’s foreign trade has experienced a notable decline in the first half of this year amid ongoing trade restrictions and maritime blockades, according to Mohammad Ali Dehghan Dehnavi, head of the Iran Trade Promotion Organization (TPO). Speaking ahead of National Export Day on October 21, Dehnavi highlighted that despite a 34 percent reduction in the weight of foreign trade, the country continues to carry out exports through alternative routes, including sea, land, and rail corridors.

Dehnavi acknowledged that about 75 percent of Iran’s foreign trade by weight was conducted via maritime routes last year, predominantly through the Persian Gulf and the Sea of Oman. Consequently, restrictions and blockades in these areas have significantly impacted trade volumes. Nevertheless, he emphasized that exports persist partially by sea alongside intensified use of land and rail transport corridors, which have become more congested and costly. The shift toward these alternatives has increased transport expenses, given that land and rail freight tend to be more expensive than maritime shipping under normal circumstances.

Despite the sharp decline in trade volume, the drop in export value was somewhat less severe at approximately 20 percent, suggesting that higher-value goods, which are better able to absorb increased transport costs, continue to be exported. Conversely, imports have fallen by roughly 20 percent in weight but saw a larger 35 percent decrease in value, reflecting reduced importation of higher-value goods amid tighter import management policies. Dehghan Dehnavi noted that essential goods and raw materials, which constitute a major share of imports, have generally been supplied adequately despite overall decreases, aided by restrictions on importing certain non-essential items to conserve foreign exchange resources.

Referring to the broader economic implications, Dehnavi described the trade downturn as costly, with potential adverse effects on production and economic activities, especially since about 85 percent of imports consist of raw materials and intermediate goods vital to manufacturing. He expressed hope that ongoing efforts to facilitate alternative supply routes and enhanced export support would mitigate some of the losses and sustain foreign trade throughout the remainder of the year.

Highlighting the critical role of trade diplomacy, Dehnavi underscored close coordination between the TPO and the Ministry of Foreign Affairs to strengthen ties with neighboring and friendly countries. This cooperation aims to expand trade corridors and develop markets to compensate for restrictions arising from sanctions and blockades.

Dehnavi also outlined a series of activities planned for National Export Week, running through the following Tuesday, aimed at fostering non-oil exports. The program includes events focused on trade infrastructure, export of knowledge-based goods and services, technical and engineering exports, legislative support, export facilitation, and export diplomacy, with participation from various government agencies and the private sector. He stressed the importance of government-private sector collaboration to boost exports and offset the economic impact of external pressures.

The TPO head further reported on the selection process for honoring top exporters, noting that out of 365 registered companies, 43 were named national exemplary exporters, and 13 were recognized as nationally distinguished exporters based on systematic, criteria-based evaluations. For the first time, a government organization will be acknowledged as an exemplary export-supporting entity, recognizing its significant contribution to export activities.

The primary National Export Day ceremony will take place on October 21, with plans for attendance by senior government officials, continuing a tradition of recognizing exporters’ efforts amid challenging economic conditions.