An estimation of the export potentials of Iran agricultural products to the EU

The purpose of this article is to give an estimation of Iran’s export potentials of agricultural products to 25 member countries of the European Union by using and applying appropriate methods of estimating trade potentials, comparative advantage and cosine index during 1999-2003. The study shows that many EU member countries have a great trade complementarily with Iran. An index value close to unity indicates the possibility of exporting much more to these countries. EU is a considerably big market for these products and would be accessible if EU’s import requirements are fully met. Out of 307 Iran’s exportable goods with comparative advantages, 63 counts for agricultural products. Iran currently exports only 7 items comprising of cucumber, pistachio, date, peach, hop-plant syrups pea and some vegetable raw materials used in dyeing or tanning industries. The agricultural products with the highest export potentials have been exported to 9 countries of Poland, Sweden, Spain, Belgium, England, France, Italy, Netherlands and Germany. The first place in importing these products from Iran belongs to Germany with more than 40 potential items. Providing tables by exporting agricultural products on a 6-digit HS basis, the article concludes that Iran has much more unutilized potentials in these export sectors that could be utilized as a basis to impose lower tariffs on these products and thus achieving a greater market access through well informed trade negotiations with the EU.