AN ESTIMATION OF THE EFFECTS OF TRADE & COOPERATION AGREEMENT (TCA) BETWEEN IRAN AND EU ON IRAN’S FOREIGN TRADE PROMOTION

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HOSSEINI M.A.; ZAHED TALABAN A.

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

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Journal: Iranian Journal of Trade Studies Year:2006 | Volume:10 | Issue:40 Page(s): 53-94

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Title

AN ESTIMATION OF THE EFFECTS OF TRADE & COOPERATION AGREEMENT (TCA) BETWEEN IRAN AND EU ON IRAN’S FOREIGN TRADE PROMOTION

Author(s)

HOSSEINI M.A. | ZAHED TALABAN A. | Issue Writer Certificate

Keywords

TRADE & COOPERATION AGREEMENT (TCA)Q3

TRADE CREATION (TC)Q3

TRADE DIVERSION (TD)Q3

FOREIGN TRADEQ3

EUROPEAN UNION (EU) & IRANQ3

Abstract

In the present article, the effects of tariff reductions on Iran’s and EU’s mutual trade have been measured. Calculations have been based on the data related to variables such as price elasticities of import substitutions, the volume of current FOREIGN TRADE between Iran and EU, current tariff rates and the amount of tariff reductions to be made after entry in to force of the agreement. The research's findings are as follows:If EU undertakes it’s commitment to tariff reduction as provided in "TCA" , the total amount of EU's import from Iran will increase about $77.7 million out of which $38.2 million comes from the "trade creation" and $39.5 million from the "trade diversion" effects. On the other hand, if Iran cuts down its tariff rates to half of the current rates in 2003 (decreasing it from 27.3% to 13.65%), the total amount of Iran’s import from EU countries will increase about $3520.93 million out of which $1615.2 million will be caused by the "trade creation" and $1905.73 milion by the "trade diversion" effects.The comparison of these figures indicates that Iran’s import will increase about 45.5 times as much as the EU’s import. One of the most important reasons for this unbalanced change is the different size of parties’ economies and their current unbalanced trade. The most part of increased market access in Iran would belong to its main partners among EU countries such as Germany, France, Italy, UK, Sweden, Belgium, Netherlands, Austria and Spain.

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APA: Copy

HOSSEINI, M.A., & ZAHED TALABAN, A.. (2006). AN ESTIMATION OF THE EFFECTS OF TRADE & COOPERATION AGREEMENT (TCA) BETWEEN IRAN AND EU ON IRAN’S FOREIGN TRADE PROMOTION. IRANIAN JOURNAL OF TRADE STUDIES (IJTS), 10(40), 53-94. SID. https://sid.ir/paper/7410/en

Vancouver: Copy

HOSSEINI M.A., ZAHED TALABAN A.. AN ESTIMATION OF THE EFFECTS OF TRADE & COOPERATION AGREEMENT (TCA) BETWEEN IRAN AND EU ON IRAN’S FOREIGN TRADE PROMOTION. IRANIAN JOURNAL OF TRADE STUDIES (IJTS)[Internet]. 2006;10(40):53-94. Available from: https://sid.ir/paper/7410/en

IEEE: Copy

M.A. HOSSEINI, and A. ZAHED TALABAN, “AN ESTIMATION OF THE EFFECTS OF TRADE & COOPERATION AGREEMENT (TCA) BETWEEN IRAN AND EU ON IRAN’S FOREIGN TRADE PROMOTION,” IRANIAN JOURNAL OF TRADE STUDIES (IJTS), vol. 10, no. 40, pp. 53–94, 2006, [Online]. Available: https://sid.ir/paper/7410/en

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