Impact of Preferential Trade Agreement between Iran and Turkey

The present study intends to investigate the trade effects of the economic agreement between Iran and Turkey on the production, export and import of the agricultural and industrial sectors using a dynamic GTAP (Global Trade Analysis Project) model for the period 2011-2025. As an application of the model, a preferential trade scenario for Iran is simulated in accordance with the agreement. The results of the agreement show that in general, almost all sectors will increase production in 2025. The strengthening of this preferential trade agreement by both countries can increase the level of production during the study period for both countries. Therefore, Iran's presence in a trade arrangement with Turkey is recommended.