SUMMARY
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MANILA, Philippines – Iran plans to buy more Philippine bananas, invest in infrastructure and energy projects, as well as set up branches of Iranian banks here, in a bid to foster better economic relations between the two countries.
Finance Secretary Carlos Dominguez III said in a statement that in a recent courtesy call, Iranian Ambassador to Manila Mohammad Tanhaei told him that Tehran wants to strengthen connections between his state’s central bank and the Bangko Sentral ng Pilipinas (BSP) to allow more Iranian investors to start doing business in the Philippines.
According to the finance chief, the ambassador said a deputy minister of Iran’s Finance Ministry will visit the Philippines in the first week of November “to discuss a framework of cooperation between Manila and Tehran.”
“We do want to improve our relationship with Iran and we would be very happy to meet your Central Bank Governor,” Dominguez told Tanhaei.
The finance chief assured Tanhaei that he “will certainly welcome all of Iran’s officials” to Manila to help reinvigorate bilateral relations between the two countries.
Importation of bananas
Tanhaei said he has been coordinating with local business groups like the Philippine Chamber of Commerce and Industry to explore areas of investments for Iranian companies. (READ: Banana, anyone? Philippines seeks other export markets)
“In the (Iranian) private sector…for example regarding bananas, there are some big companies that said we still need more bananas from the Philippines,” Tanhaei said.
Filipino banana producers used to export 30% of their produce to Iran.
The export of fresh bananas went up as high as 510,642 metric tons in 2008. But due to the United Nations’ trade restrictions over Iran’s nuclear activities, Philippine banana shipments declined, registering 148,892 metric tons only in 2014.
With the recent lifting of the trade sanctions, the Philippines expects Iran to once again be among the country’s largest markets for its fresh banana exports.
Oil exploration, petroleum trade
Other than importing more bananas, Tanhaei told Dominguez that Iranian companies are interested in investing in the Philippines’ infrastructure, power transmission, and water purification projects.
For its part, the Iranian government has expressed interest in working with the Philippines’ energy sector, particularly in the fields of oil exploration and the petroleum product trade, said Tanhaei.
He added that Manila and Tehran enjoy strong political relations, but can do more in reinforcing their economic ties, citing the Philippines as one of Iran’s “country priorities.”
Banking opportunities
According to Dominguez, the Iranian ambassador also raised the possibility of setting up branches of Iranian banks in the Philippines and for the Land Bank of the Philippines (LandBank) to do the same in Iran.
This is aimed at providing banking facilities for Filipinos based in Iran.
In response, Dominguez said he will look into the ambassador’s proposal on the establishment of LandBank branches in Iran.
Diplomatic relations between Manila and Tehran were established on January 22, 1964.
Iran has consistently supported the peace process in Mindanao and also backed the Philippines’ application for observer status in the Organization of Islamic Conference. – Rappler.com
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