In order to develop trade relations with Turkey, Iran has concluded a trade facilitation agreement in the form of reduction of tariff barriers.

In this regard, Turkey to expand its exports to Iran, has presented a list of goods to demand a tariff reduction from Iran and to be able to expand its exports with Iran. The requested list by Turkey includes 122 six-digit tariff codes, of which only one is in the agricultural sector. Iran's tariff rate on these goods is between 5% to 32% and the average tariff rate is 15.9%. The share of the above items in the weighted average of Iran's imports from Turkey during the period 2015-2018 constitutes more than half of the Iran's total imports from Turkey (51.7%).

In order to determine the manner and amount of granting tariff points (preferential tariffs) by Iran to Turkey, based on a method based on the degree of vulnerability of Iranian imported goods from Turkey have been used. In this method, two categories of general and control variables have been used. General variables include the share of Turkey's revealed comparative advantage index to Iran’s; The average index of the revealed comparative advantage of Turkey and the average export potential of Turkey to Iran are; and the control variables include the tariff rate of Iranian imported goods; Growth rates of comparative advantage for Iran's exports (an increase in Iran's expectation from Turkey) are. The basis was the prioritization of goods in terms of vulnerability and sensitivity to imports from Turkey.

List of items of Iranian goods imported from Turkey with the help of these indicators, they were prioritized to be included in the negative list of preferential tariffs. Ranked first on this list is the need for the utmost caution in offering preferential tariffs to Turkey. Thus, the ranking of Turkish commercial items was reversed to identify more suitable goods for tariff reduction.

In this regard, the items requested by Turkey to gain points from Iran were divided into three groups. The first group, in which it is possible to grant tariff concessions, includes 79 tariff codes that Iran can easily offer trade concessions to Turkey. These items are equivalent to 32.6% of Iran's current imports from Turkey and the average Iranian tariff rate for this category of goods is 12.4%. The second group includes goods that Iran should be cautious about in granting tariff concessions. These goods include 39 tariff codes that Iran should consider with some consideration to offer trade concessions to Turkey. These items are equivalent to 18.3% of Iran's current imports from Turkey and the average Iranian tariff rate for this category of goods is 22.6%. The third group includes goods that Iran must tighten in granting tariff concessions to Turkey. These goods include 4 tariff codes that Iran must provide Turkey with trade concessions under strict conditions. These items constitute 0.8% of Iran's current imports from Turkey and the average Iranian tariff rate for this category of goods is 18.6%. This third group, which will have the greatest possibility of increasing Iran's imports from Turkey if the tariff rate is reduced, and Iran needs to be more careful in granting concessions to this country than other items, will most likely be more than other goods requested by Turkey.

None of the items requested by Turkey are among the banned goods imported by Iran from the world.

Iran, in turn, should provide a list of goods requested for preferential tariffs in order to expand the export of these items to Turkey; request and obtain concessions from this country. Certainly, receiving concessions from Turkey would be preferable to offering tariff concessions to this country.