IRAN OPENS FIRST-ANNUAL TRADE PAVILION IN ALGIERS

UNCLAS ALGIERS 000817

SIPDIS

SIPDIS

DEPARTMENT FOR INR/B

E.O. 12958: N/A
TAGS: ETRD ECON IR AG
SUBJECT: IRAN OPENS FIRST-ANNUAL TRADE PAVILION IN ALGIERS



1. The Iranian Chamber of Commerce, Industry, and Mining
(CCIMI) opened May 2 its first-annual industrial and
technology show in Algiers. The show, entitled IranExpo 2006,
comes on the heels of an agreement signed in January 2005
between CCIMI and the Algerian Chamber of Commerce to expand
trade relations. GoA statistics indicate Iran's two-way trade
with Algeria totals approximately USD 20 million per year.
Iran's Ambassador to Algeria said that since the resumption
of diplomatic relations between the two countries four years
ago, Iran has organized five small-scale trade exhibitions
and organized two other gatherings to promote commercial
relations.


2. Algerian Minister of Higher Education Rachid Harraoubia,
the president of the commission to expand Algerian-Iranian
ties, joined Iranian Deputy Minister of Industry Mehdi Mofidi
at the opening. Also present were the Iranian Ambassador to
Algeria, Hussein Valeh, and the head of CCIMI, Ali Naqi
Khamouchi. An Iranian-born Embassy contact told Econoff that
many of the businesses represented at the fair were based in
Khorassan Razavi Province, whose Governor General,
Mohammad-Javad Mohammadizadeh, took part in the Iranian
delegation.


3. Approximately 50 Iranian firms representing 120 operators
were present at the fair. Econoff toured the pavilion May 2
and noted that approximately half of the booths promoted
agribusiness. These companies ranged from small-scale
manufacturers of food products (such as tomato paste and
saffron) to agricultural equipment (such as tractors). A
handful of cement and engineering firms were present,
presumably with the aim of capturing a share of Algeria's
booming construction and housing sector. Other industries
represented at the fair included industrial parts, carpets,
jewelry, medical supplies, glassware, and oil servicing
equipment. The Iranian automobile manufacturer Saipa held a
prominent spot next to the entrance to the pavilion.


4. Comment: Although the process to expand Algerian-Iranian
trade relations has been underway for a few years, the
opening of IranExpo 2006 marks a bolder effort to access the
Algerian market. Sentiments at the opening of the show seemed
to contrast with the official declaration by the Iranian news
agency, as picked up in the Algerian press, that there was no
link between Iran's recent deployment of trade delegations
and the nuclear crisis. The head of the Iranian Chamber of
Commerce announced at the show opening that "Iran and Algeria
can constitute the base of the establishment of a common
Islamic market." Another speaker noted that Algeria could
serve as Iran's "bridge in the Maghreb region or even in
Africa." It is an intriguing question whether Iran views
enhanced Algerian -- or more broadly African -- trade as a
hedge against possible economic sanctions it may incur as a
result of its nuclear ambitions. End comment.
ERDMAN