Iran, Brazil ready to launch direct shipping route: Official
The Cradle, April 11, 2023 —
Brazil has recently expressed an intention to enhance its trade relations with the Islamic Republic.
Iranian media quoted a member of the Iran-Brazil Joint Chamber of Commerce, Hamed Ghaderi, as saying on 10 April that the Islamic Republic will be launching a direct shipping route with Brazil, representing a significant development in trade relations between the two countries.
According to the official, the decision taken by state-sponsored shipping firm, the Islamic Republic of Iran Shipping Line (IRISL) Group, to establish offices in Brazil “could help Iranian exporters and businesses to expand their presence in the Brazilian market,” Iranian news outlet Press TV reported.
“Given the correspondences and efforts carried out, we hope this could happen in July,” Ghaderi said.
Brazil and Iran have significantly stepped-up trade relations recently. Brazil is a leading supplier of corn and beef to the Islamic Republic, while Iran provides urea nitrogen fertilizer shipments needed for the South American country’s agriculture sector.
In 2021, Brazilian exports to the Islamic Republic amounted to $1.94 billion, while Iranian exports to Brazil amounted to $59.2 million.
Last month, Brazilian Ambassador to Iran Laudemar Gonsalves de Aguiar Neto said while on a visit to the Islamic Republic that his country is seeking to further boost trade ties with Tehran.
In recent years, IRISL has sought to diversify shipping routes in order to boost its foreign trade and cargo transit revenues, in line with efforts to move away from crude exports.
Through these efforts, IRISL has also set up offices in Russia and India, and has facilitated trade between both countries through the International North-South Transport Corridor (INSTC), boosting Iran’s transit revenues and allowing it to strengthen its economy and ease the effects of US sanctions.
Iran has also sought to join the BRICS group of emerging economies, of which Brazil, Russia, and China are a major part – signifying ongoing efforts to form new economic partnerships in the region as the western economic system continues to collapse.
Further signifying the growing relationship between Iran and Brazil, the Brazilian government, at the end of February allowed Tehran to dock two Iranian warships in Rio de Janeiro despite pressure from Washington to bar their arrival.