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Turkey Sees Boon From Iran Accord

Turkey Sees Boon From Iran Accord
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Παρ, 29 Νοεμβρίου 2013 - 17:56
Turkish hotels and travel agents reported a sharp jump in bookings from Iranian tourists this week while traders in Istanbul's famed bazaar said more Iranian businessmen have been buying Turkish goods in bulk to sell back home.
Turkish hotels and travel agents reported a sharp jump in bookings from Iranian tourists this week while traders in Istanbul's famed bazaar said more Iranian businessmen have been buying Turkish goods in bulk to sell back home.

The pickup in activity immediately after Iran won relief from international sanctions in a nuclear agreement over the weekend signaled that Turkey 's slowing economy may be among the first to reap economic benefits from the deal.

Companies and merchants anticipate the once-burgeoning trade between the neighboring countries will thrive again.

The interim agreement provides for modest sanctions relief in exchange for Iran freezing parts of its nuclear program that the West suspects are aimed at making a nuclear weapon.

It is supposed to be a step toward a more comprehensive agreement between Iran and world powers.

The deal loosens restrictions on oil sales, paving the way for Iran to reap as much as $4.2 billion from energy exports, according to the White House.

Though sanctions relief is limited, Turkey 's government said it would increase oil imports from Iran by 30% and study the agreement to see whether it can immediately restart trading that had been prohibited.

"We will remove the barrier that embargoes have put in front of us," Economy Minister Zafer Caglayan told business leaders in Istanbul on Monday.

An international rapprochement with Iran could rejuvenate bilateral trade, providing a much-needed boost to Ankara and Tehran as they take steps to mend fraying political ties. The countries have increasingly split along sectarian lines over Middle East conflicts, particularly in Syria where they are backing opposite sides in the civil war.

Turkish Foreign Minister Ahmet Davutoglu visited Tehran this week and met with leaders.

 Iran 's exports to Turkey , largely dominated by oil and gas, surged 20-fold over the past decade to $12 billion in 2012. But they have fallen 33% so far this year. Turkey 's reliance on Iranian oil has dropped from more than half its needs to 15% this year because of sanctions.

Turkish exports to Iran have 66% so far this year.

At home, government measures to curb credit-fuelled consumer spending have hit Turkey 's economy. Growth dropped sharply to 2.2 % last year from about 9% annually in 2010-2011.

The nuclear agreement also allows Iran to resume exporting and importing some gold and precious metals.

This might prompt Turkey to restart its now-banned "gold-for-energy" trade. The government exported large quantities of gold to pay Iran for natural gas and oil, bypassing sanctions designed to prevent Iran from receiving payments under the international financial system.

Tougher sanctions ended the trade, which had helped narrow Turkey 's large current-account deficit in 2012. Turkey 's tourism sector is also gearing up for an influx of Iranian.

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