Maku Free Zones

Date:05 March 2017

Trans-boundary Perspective for The Widest Free Zone in Iran

Maku Free Zone, the largest free zone of Iran, owning the largest land border between Iran and Turkey, and known as the gate of Europe, has the bright prospects of becoming a joint free trade zone between Iran and Turkey or Azerbaijan.

Eleventh government's efforts to create joint free trade zones with neighboring countries, is an approach to boom production, export, investment and employment but the priority of  establishing such joint trans-boundary free zone in Maku with neighboring countries has been ignored by authorities.

The government's emphasis on economic growth, and reduction of reliance on oil revenues in the budget of 2017 on the one hand, and achieving a $ 30-billion- trade target between Iran and Turkey and establishment of diplomatic relations between Iran and Azerbaijan on the other hand signifies the importance of establishing trans-boundary joint free trade zone between Iran and neighboring countries more than ever before.

The implementation of preferential trade agreements between the two countries, Iran and Turkey, can in some cases be affected by this joint trans-boundary trade zone.

Deputy of free zones Supreme Council announced that establishing joint free economic zones between two countries is a joint decision on the custom’s tariff rate. The first issue that arises in setting up the joint zones is reduction of tariffs and setting common and equal tariffs between the two sides.

Hossein Froozan, CEO of Maku free zone organization, said: in the light of the government of Prudence and Hope, Maku free zone is becoming the gateway of Middle East countries and Europe. Maku free zone as the largest free zone in Iran has the capacity and is ready to become a cross-border free zone. In case of the government and MPs approval, the plan of joint free economic zones can be a big turn in the country’s economy.