The Director General of the Mehran Free Trade Zone Organization announced that negotiations to establish a joint free trade zone between Mehran and Zurbatiya in Iraq have accelerated. A welcome from the Iraqi side could lead to the formation of a common economic hub on both sides of the border and a significant increase in trade in western Iran.
Furthermore, the process of importing and registering vehicles for free trade zones is in its final stages. Mehdi Rayati stated in a video interview for the IRNA news studio on Sunday that after being approved in 1400 (2021), the Mehran Free Trade Zone Organization faced delays in its initial operations due to changes in government and the inability to ensure the necessary conditions for forming a board of directors and organizational structure. Nevertheless, official activities began last Bahman (February).
He added that after the organization started operating, its structure was formed, deputies and departments were established, and numerous legal and executive measures were included in the agenda to activate the potential of the free trade zone. Today, the Mehran Free Trade Zone has overcome the stage of organizational establishment and moved to the stage of implementing economic, infrastructural, production, and commercial programs.
One of the first tasks after the organization's creation was activating the company registration process and issuing permits for economic activity, which is currently taking place in the Mehran Free Trade Zone. The Director General of the Mehran Free Trade Zone Organization noted that 470 manufacturing, service, and predominantly commercial companies are being registered in the Mehran Free Trade Zone, and this interest reflects the expectations of economic entities regarding the legal opportunities and the zone's location near the border.
Rayati reported that the process of issuing permits for economic activity has also been defined and activated within the organization, allowing economic entities to conduct their business legally through the free trade zone. He continued that the transfer of official documents to the territory of the free trade zone into the organization's custody was carried out in cooperation with the National Organization for Document and Property Registration. This measure is an important infrastructure for stabilizing economic activity and investment in the zone.
The Director General of the Mehran Free Trade Zone Organization announced the completion of the creation of the free trade zone customs, and the Customs Administration of the Islamic Republic of Iran issued a customs code for this zone. Negotiations were also held with the Iraqi customs in the field of foreign trade. Recently, at a meeting with the director general of this country's customs, issues and questions raised by Iranian traders were discussed.
Rayati emphasized that the Iraqi side sent a representative to monitor issues and resolve customs and trade problems, and this matter will be actively promoted in the coming days. He stressed that the organization is prioritizing border organization and the creation of necessary infrastructure for economic activity, striving to simplify and accelerate the trade process in the region.
The Director General of the Mehran Free Trade Zone Organization added that the activation of the free trade zone customs, issuance of permits, and document stabilization have created the necessary foundation for a more serious entry of investors and economic entities. He stated that the Mehran Free Trade Zone Organization aims to transform the zone's legal potential from a stage of regulations and administrative institutions into real economic activity. The main goal is to simultaneously activate production, trade, services, and investment in the free trade zone so that the residents of the region can see its positive impact on the economy of Mehran.
In other remarks, the official noted that the creation of a joint free trade zone with Iraq is one of the important programs of the Mehran Free Trade Zone Organization, and negotiations with officials of the Iraqi free trade zone are proceeding seriously. He mentioned that during two meetings with officials of the Iraqi free trade zone, the issue of creating a commercial free trade zone opposite Mehran was raised, and the Iraqi side welcomed this idea. The Iraqi side is studying and determining the desired territory in Zurbatiya, and the cooperation process in this area has accelerated during the meetings.
He recalled that recently, at a meeting with Iraqi officials and in the presence of the Ambassador of the Islamic Republic of Iran in Iraq, the issue of a joint free trade zone was discussed, and both sides emphasized the need to follow and implement the plan. He explained that creating a joint free trade zone between the two countries requires careful study due to its legal, political, and security aspects, and an adequate response and clear framework must be determined for each of these issues.
He added that provided a legal and executive basis is provided, the joint free trade zone can create new potential for the development of trade, industry, services, and investment on both sides of the Iran-Iraq border. The Director General of the Mehran Free Trade Zone Organization explained that establishing a free trade zone in Zurbatiya opposite Mehran could become a successful model of economic cooperation between Iran and Iraq, ensuring an economic leap for Mehran, Ilam, and western Iran.
The Director General of the Mehran Free Trade Zone Organization reported that studies on a number of infrastructural, production, commercial, and service projects have been completed. During next week's visit of the Secretary of the High Council of Free Trade Zones, executive operations on part of these plans will begin. He announced that during this visit, the foundation of a production factory with the possibility of directly employing almost 300 people will be laid, as well as several commercial and administrative complexes are planned.
Rayati continued that the fencing of the first phase of the Mehran Free Trade Zone will also enter the executive phase after the completion of studies. He also reported that the complex of services, welfare, accommodation, and culture of Arg-e Javad al-A'meh has completed its design stages and is ready to begin executive work. The Director General of the Mehran Free Trade Zone Organization added that the program also includes projects related to water, electricity, and access roads, the implementation of which will be financed by private sector investment opportunities.
He explained that in the infrastructure sector, they are looking for participatory methods, and public-private partnerships can meet a significant part of the region's infrastructure needs. Rayati stated that attracting investors for infrastructure projects is one of the organization's serious programs, and they are trying to accelerate the implementation of plans. He also reported that about 17 percent of the Mehran Free Trade Zone territory is designated for agricultural use, and this potential, along with processing industry, can become one of the axes of economic activity in the zone.
He added that a program has been launched to promote modern cultivation methods in the region, and given Mehran's access to domestic and international markets, they aim to develop agricultural production and processing industry. The Director General of the Mehran Free Trade Zone Organization emphasized that the agricultural potential of Mehran and Ilam must be utilized in this area, and conditions must be created for producers to supply their products to the market with higher added value.
He continued that the development of eco-tourism and agro-tourism is also included in other programs of the organization. Cooperation is underway with the Provincial Directorate of Cultural Heritage, Tourism, and Crafts to implement this program. Rayati reported that a memorandum of understanding has been signed with the Provincial Directorate of Cultural Heritage to facilitate and develop tourism services, and this program includes presenting the attractions of Ilam to pilgrims and travelers. He noted that Ilam possesses valuable natural and tourist potential, and the intensive traffic through the Mehran border presents an opportunity to introduce Iraqi travelers and tourists to this potential.
The Director General of the Mehran Free Trade Zone Organization added that the goal is for some of the border traffic to turn into longer stays for travelers and stimulate tourism services in the province. Addressing the new status of the Mehran Free Trade Zone Organization, Rayati said that it cannot be expected that an organization that began its activities and functioning about six months ago can solve all the accumulated problems of past years in such a short time. Despite financial resource limitations and the short period of operation, the measures taken in the fields of company registration, customs, documents, permit issuance, transport, industry, agriculture, tourism, and border diplomacy show that the organization has entered a new stage of activity and breakthrough.
The Director General of the Mehran Free Trade Zone Organization continued that the management team and board of directors of the organization have experience working in free trade zones and, with a forward-looking approach, are trying to accelerate the path of Mehran's development. He stressed that the support of the population, economic entities, traders, producers, and entrepreneurs is crucial for the implementation of the free trade zone's programs. Rayati concluded that the Mehran Free Trade Zone is still at the beginning of its journey, but its legal opportunities, its location near the border, the welcome of economic entities, and the cooperation of various bodies can pave the way for transformation in this region. The Director General of the Mehran Free Trade Zone Organization stated that the prospects for Mehran are bright, and they hope that thanks to the work being done, we will see the formation of a stable economic flow on both sides of the border and the transformation of Mehran into one of the important trade arteries and economic hubs of Iran and Iraq.