Soroush Plastic Sepahan03138552585

Bright shadow exports of polymer industries

Dr. Masoud Jamali in the meeting, pointing out that the export of polymer industries in recent years has been between the first to third exports of the country, said: Polymer industries last year with 1 billion and 31 million dollars exports, the leading export industry of the country and plastics industry In areas such as exports as well as healthcare, the industry has been at the forefront of tackling the industrial corona pandemic.

1.5 percent share of polymer industry in GDP

Dr. Reza Tawfiqi, an expert in this field, said at the meeting: "Iran's polymer industry accounts for 1.5 percent of GDP and 3.6 percent of employment, which shows that this industry is employment-generating." Also, 4.5% of the share of non-oil exports in this industry is formed, which shows that out of 110 codes (ISIC) subset of industrial items classification, the polymer industry alone accounts for 4.5% of the share of non-oil exports of the country and finally The currency balance of the industry is positive.

Tawfiqi pointed out: The exchange rate balance is the difference between the income from the export of industry and the foreign exchange expenditures required for machinery, which despite the industry's high need for technology and machinery, we see that it still has a significant exchange rate for the country.

As a result, it became necessary to organize a series of measures in the field of polymer industry in order to encourage more actors in the polymer industry to export.

According to Tawfiqi, when a production unit becomes exported, exports can benefit from the scale as much, in other words, part of the production overhead cost of the industrial unit used in the export area is divided between the export goods and the domestic supply goods.

In other words, export improves the competitive advantage of the industrial unit by reducing the cost price of the product. The purpose of holding this conference is to contribute to the growth, success and development of industrial units.

Risk of dependence on limited export markets

Continuing the meeting, Massoud Jamali said about the export markets of the region: "Unfortunately, we are dependent on one, two countries, Iraq and Afghanistan in the region, which can be considered a threat to sustainable development in the field of exports; We are especially challenged if political and economic developments occur, so we must work to identify new markets such as Eurasia and Pakistan.

In response to a question about the Pakistani market capacity for Iranian polymer products, Tawfiqi pointed to the $ 2 billion market for polymer products in Pakistan and explained: Iran, with a 5% share of the Pakistani polymer market, exports only about $ 103 million worth of polymer and plastic products. To Pakistan and is ranked sixth in this market; China, meanwhile, has seized the market and is the first exporter of polymer products to Pakistan.

He added: "One of the ways to develop the export of polymer products to Pakistan is to include polymer products in tariff reductions during the review of the preferential trade agreement with this country." Referring to the signing of a preferential trade agreement between Iran and Eurasia, Tawfiqi said: "In this agreement, more than 60% of the items agreed upon by the two sides are related to polymer and plastic industries, and this is a great opportunity for Iranian polymer industry activists to share the country's polymer products." Raise in the Eurasian market. He continued: "While the import of polymer products to the Eurasian market reaches $ 4.5 billion annually, Iran's share of this market is about $ 600 million."

Masoud Jamali further explained regarding the exporters' tax: "Unfortunately, despite the passage of two years since 1997, the tax exemption of those who did not fulfill their foreign exchange obligation in 1997 and did so in 1998 and 1999, has been abolished and they are obliged to Taxes and (duties) are the value added of their exports, which seriously harms exporters. "Fortunately, the procedure of the Ministry of Silence changed last year, and with the help of the Trade Development Organization, they took steps to amend the directives, despite the resistance of the Central Bank," said the head of the Export Commission of the National Association of Polymer Industries.

Jamali also explained: "In the field of CIS countries, we were able to get the first rank in the export of code 39 in Armenia and the second rank in the Republic of Azerbaijan." Of course, we can also increase the export market ceiling of the polymer industry in other countries in this area, such as Kyrgyzstan, Kazakhstan and Turkmenistan, by using preferential tariffs. Regarding the export advantage of Iranian polymer products, Jamali, referring to access to regional markets, said: "Iran is a serious competitor in goods made in the region in terms of technology and production scale, but the geographical situation and multiple borders of our country as a advantage over other countries."

Also, despite all the problems in the supply of raw materials, the production of these materials in the country can be one of the comparative advantages of Iran, if the supply of materials and selling prices at home reach the desired state.

He concluded: "In 1999, at the height of the sanctions and despite all the problems, we exported more than one billion and 39 million dollars. Of course, this number is much higher because the share of polymer items in the packaging of other non-polymer export goods is not calculated.