8 Measures to Boost Non-Oil Exports and Increase Foreign Currency Earnings

An expert, stressing the need to move beyond slogan-driven approaches, named regulatory stability, currency policy reform, financing, and the development of target markets as requirements for boosting export competitiveness and sustainable foreign currency earnings.

guest note; Mahmoud Bazari; Senior Foreign Trade Expert: Iran's Export Development Center in 1376 and at the same time as designing and announcing the country's non-oil export development comprehensive program which was approved by the government of the time, proposed the National Export Day to the Council of Public Culture in order to create culture and promote non-oil exports, and this council registered the 29th of October as the National Export Day in the country's calendar. This day is known as a symbol to respect and honor the effort and efforts of the country's exporters, and on this day, the exemplary exporters of the country are honored as frontline officers of the economy.

It can be said that the National Export Day is a place to present the real achievements and plans of the governments in the way of supporting exports and encouraging exporters. The high-ranking officials of the government outline the policies and policies of the government for the development of non-oil exports and its role in the growth of the national economy. On the other hand, National Export Day is a cross-sectoral event to evaluate the government's convergence with the private sector and monitor the government's actions and achievements in this field.

In order for the 30th National Export Day to become a turning point in the reform of the country's commercial policies, the government and executive bodies must move from partial and slogan-oriented approaches to a national program to facilitate and accelerate non-oil exports with quantitative goals, specific responsibilities and measurable results.

The most important axes of this program are:

1. Redesigning export foreign exchange governance: reviewing the methods of meeting foreign exchange obligations with the real participation of export organizations, adapting regulations to the characteristics of industries and markets, clarifying the permitted methods of currency return and avoiding spur-of-the-moment decisions; In such a way that meeting the country's foreign exchange needs is accompanied by maintaining the export motivation and competitiveness of exporters.

2. Ensuring the stability and predictability of regulations: establishing a binding mechanism to assess the effects of new decisions on exports, announcing changes in advance, consulting with the private sector and preventing retroactive application of regulations; Especially in the field of prohibitions, export duties, foreign exchange contracts and customs regulations.

3. Reducing the cost and time of business: integrating business systems, eliminating duplicate licenses, developing smart customs services, accelerating the issuance of certificates and standards, and creating a way to quickly deal with exporters' operational problems.

4. Financing and export risk coverage: strengthening working capital, buyer and seller credit, export guarantees, credit insurance and financing tools for foreign orders; Focusing on small and medium enterprises and markets that have the capacity for sustainable growth.

5. Market development based on real demand: developing specialized plans for each target market based on data on imports, competitors, prices, standards, logistics costs and distribution channels. Business consultants, embassies, and trade development organizations should stay away from merely ceremonial activities and play an operational role in customer identification, removing barriers to entry, and following up on business contracts.

6. Supporting export management companies and export accelerators: creating a clear framework for using the capacity of these companies and export consortia, especially in aggregating the supply of small enterprises, developing a common brand, standardization, international marketing and continuous presence in the distribution networks of target markets. Government support should be based on actual performance and measurable results.

7. Moving from raw sales to high value-added exports: supporting the completion of the value chain, processing, packaging, product design, branding and after-sales services; With the consideration that policies to promote added value should not destroy existing markets with sudden export restrictions.

8. Accountability of export custodians: Ministries of Economy, Ministry of Agriculture, Central Bank, Customs, Trade Development Organization, National Standard Organization, Export Guarantee Fund and other related institutions should be evaluated based on specific division of labor, common indicators and periodical performance reports. Sustainable growth of exports, reduction of transaction costs, increase of domestic added value, diversity of markets and sustainability of exporters should be the criteria for policy evaluation; Not just the amount of currency demanded from exporters.

National Export Day comes closer to its true mission when exporters in the post-event period experience more stable regulations, better access to financing, shorter processes, lower costs, and greater opportunities for long-term planning.

In the coming years, the 14th government can provide the basis for the transformation of the country's production capacities into sustainable foreign exchange income by reforming foreign exchange mechanisms, harmonizing trade policies, strengthening the participation of the private sector, and handing over a part of specialized export services to professional institutions.

Export should not be seen as a source of government currency; Successful export is the result of mutual trust between politicians and economic activists. Any policy that weakens production capacity, investment motivation and the possibility of exporter competition may create an appearance of control in the short term, but in the long term it will limit the country's currency earning capacity.

On the other hand, a policy that allows the exporter to reliably produce, build a market, sign contracts and fulfill his obligations to foreign customers, can lead to an increase in foreign exchange, production growth, sustainable employment and improvement of people's welfare at the same time. This is the criterion that should be used as the basis for judging the success of the country's macro export policies on the 30th National Export Day.