Free and special economic zones of Iran plan to develop and expand trade and economic relations including in the sphere of transboundary trade with Turkmenistan.

After approval of the Committee for Monitoring of Foreign Trade of the Islamic Republic of Iran, the department of development of economic and trade relations with Turkmenistan has been opened in the administration of Sarakhs Special Economic Zone for development of trade and economic relations with Turkmenistan especially in the cooperation sphere under Free economic zones of two countries and countries of the region.

High-ranking officials of the Islamic Republic of Iran, Ministry of Industry, Mines and Trade, Organization for Support of Trade of the Islamic Republic of Iran have taken part in the ceremony. Wide range of subjects for perspectives of cooperation between Sarakhs Special Economic Zone and Turkmenistan and other countries of the region has been discussed.

It is worth to remind that Sarakhs Special Economic Zone is located several kilometers to the northeast from Iran. This is a bridge for connection of Central Asia countries to big trade countries of Persian Gulf to the south from Iran, to the west from Europe and the east from Afghanistan and Pakistan.

Earlier, the Governor of Iranian Golestan Province Hadi Hagshenas has said that the law on establishment of Inche – Burun free economic zone next to railroad border point Akyayla (Turkmenistan) – Incheburun (The Islamic Republic of Iran) has been adopted at the session of the Parliament of the Islamic Republic of Iran.

He has added that access to railroad and land border with Turkmenistan are important advantages of the region and after several reforms, which will be implemented in the future, the opportunities of expansion of dialog across the border on the Caspian Sea will also be used.

According to the Governor, who pointed out tax benefits and other advantages of free economic zones, Inche- Burun Special Economic Zone will be attractive for investments and a unique opportunity for economic growth of the province.

According to existing legislation of Iran, Special economic and special trade zones have tax benefits, export, import benefits and tax benefits for commercial income.

Iran already has special economic zones in the south of the country – Chabahar, Keshm, Kish, Sarakhs, Arvand, Aras and Enzeli in the north. In addition to free economic zones, there are 15 special economic zones – Julpha, Selfchegen, Sirjan, Busher, Khorramshakhr, Shakhid Rajayi (Bender Abbas), Amirabad, Sarakhs, Khuzestan, special economic zone of electrical energy and electronics in Shiraz, Energy special economic zone Pars (Assaluye), avia construction special economic zone Payam, petrochemical special economic zone (Bender Imam Homeyni), ship construction special economic zone Khalije Fars (Khormozgan Province), mining and metallurgic special economic zone (Bender Abbas).

It is worth to mention that free economic zones can also appear in Turkmenistan in the coming years. Relative concept is already developed by the government of the republic. The main goal of future free economic zones is to attract investors and advanced technologies for effective use of resources.

In addition, the facilities will allow accelerating the establishment of joint ventures, which will produce qualitative production, which will increase export potential and reduce import.

President Gurbanguly Berdimuhamedov requested the government to make analysis of the economy of the country and foreign markets. The concept must be developed under national laws. In addition, the concept must detail specific results from opening of free economic zones.

Legal base for opening and operation of the zones includes the Laws on Foreign Economic Activity dated by August 16, 2014 on Economic Zone of Free Entrepreneurship with amendments from 31.03.2012. According to the standards, tax and customs benefits as well as special regulation for pricing and foreign currency operations will be working in free economic zones.

It is worth to mention that conclusion of the report of the Asian Development Bank states that establishment of free economic zones in Asia provides the growth of trade, income of foreign investments and accelerates the reforms in economy.

Prepared by Janmamed Gulamov