Iranian Gov’t Sets the Orders for Implementing One Year of its ‘’Economic Diplomacy Plan’’

Nouraei & Mostafavi Law Offices -3 January 2023- Tehran- Iran- The Iranian government has set the guidelines for promoting the country’s foreign trade and international economic cooperation, as stated   in the Decree No. H59926 T/168214 of December 4, 2022, published today in the Official Gazette No. 22661.

Executive Orders for Implementing One Year of the ‘’Economic Diplomacy Plan’’

Issuance Authority: Cabinet

No. of the Special Issue: 1623

No.: H59926 T/168214

Date: December 4, 2022

  • Ministry of Industry, Mine and Trade
  • Ministry of Economic Affairs and Finance
  • Ministry of Petroleum
  • Ministry of Energy
  • Ministry of Roads and Urban Development
  • Ministry of Foreign Affairs
  • Ministry of Intelligence
  • Planning and Budget Organization
  • Central Bank of Iran

During a meeting on 2/9/1401 (23 November 2022), held at the proposal of the Working Group subject of Clause (H) of Note (3) of the single article of the annual budget law for the (Persian calendar) year 1401(21 March 2022-20 March 2023) and in light of the mentioned clause, the cabinet approved the Executive Orders for Implementing One Year of the Economic Diplomacy Plan as follows:

Articles 1– In the decree, the following terms shall be applied in their respective detailed meanings:

1- Economic Diplomacy: Series of foreign economic measures and activities, carried out both by the public or the private sector and in coordination with the Ministry of Foreign Affairs, aimed at developing foreign economic and commercial relations to achieve goals such as better access to international markets of goods and services, attraction of foreign investments, exchanging technology, and establishing sustainable relations with other countries.

2- Target Countries: Countries which compared to other trade partners are given priority for strengthening bilateral relations based on the following criteria:

A- Neighboring countries and those in the periphery.

B- Level of political/commercial relations with the concerned country.

C- Their political, cultural, religious, historical, and civilizational affinities with Iran.

D- Volume of imported goods whereas Iran has the capacity to produce and export.

E- Competitors and how much their presence weighs in the target market.

F- Economic growth plans and development-allocated budgets of the target country (for export of services).

G-Level of industrial, agricultural and services links and the technological situation of the target country.

H- Potential for providing financial resources and conducting foreign investments.

3- Country-Goods Trade: Exchange of products (goods and services) needed the Islamic Republic of Iran and the target countries, compatible with Iran’s potential and actual export advantages as well as import needs of the target countries and Iran.

4- Working Group: The working group shall be comprised of fully authorized representatives from the ministries of: Industry, Mine and Trade, Economic Affairs and Finance, Petroleum, Energy, Agriculture Jihad, Roads and Urban Development, Foreign Affairs, Planning and Budget Organization and the Central Bank of the Islamic Republic of Iran. The Ministry of Industry, Mine and Trade shall be responsible for the Working Group (via the Trade Promotion Organization).

Note – The Ministry of Industry, Mine and Trade may invite a representative (without having a voting right) from the Ministry of Intelligence to sit at the meetings.

Article 2– The Working Group shall be obliged to determine the necessary executive decrees and necessary solutions for implementation of one year juncture of the Economic Diplomacy Plan aimed at establishing and developing economic and commercial relations with the target countries through expansion of exports, barter deals (goods and services), improving foreign investments, removing restrictions for financial transfers, improving financial and banking infrastructures, developing transportation infrastructures, and diversifying resources to provide for imports in line with the limits of Iran’s economic resilience, especially regarding imports of basic goods. If required, the Working Group shall submit its proposals to the cabinet.

Article 3– The Central Bank of shall, in cooperation with other relevant institutions, be obliged to take financial and banking measures compatible with the country-goods trade program stipulated in the Economic Diplomacy Plan. Such measures shall include establishment of bilateral clearing houses, laying the grounds for conclusion of monetary agreements, promoting and facilitating establishment of foreign bank branches in Iran’s free trade zones, and obligating banks to use a financial messaging system not susceptible to sanctions. The Central Bank of Iran shall, every three months, deliver a performance report on implementation of Clause (H) of Note (3) of the annual budget law to parliament’s planning, budget, audit and economic committees and Iran’s Accounts Court.

Article 4- The Ministry of Industry, Mine and Trade shall prepare or update the document on preferential trade or free trade agreements with the countries identified in the country-goods trade program of the Economic Diplomacy Plan.

Article 5 – The Ministry of Roads and Urban Development shall, in cooperation with relevant state organizations and in accordance with the allocated budget, provide the required logistical infrastructural support for implementing the Country-Goods economic diplomacy plan. It shall submit a six-monthly performance report to the Parliament’s Civil Infrastructure Committee and Iran’s Accounts Court.

Article 6 – The Ministry of Agriculture Jihad is obliged to change and diversify entry points for import of basic commodities with neighboring countries and countries with whom Iran shares common interests.

Article 7- The Ministry of Industry, Mine and Trade and the Trade Promotion Organization are obliged to facilitate and provide the infrastructures for exports to neighboring countries and countries with whom Iran shares common interests within the framework of the economic diplomacy plan. They shall endeavor to remove export barriers and reduce expenditures for businesspersons. The Ministry of Industry, Mine and Trade is obliged to submit to the parliament a six-monthly performance on fulfillment of this article.

Article 8 – The Ministry of Industry, Mine and Trade is obliged to send a performance report of the Working Group to the parliamentary economic, planning and budget and audit, national security and foreign policy committees, Iran’s Accounts Court, and the cabinet. The report shall also be made available to other members of the Working Group.

First Vice-President – Mohammad Mokhber

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