In recent decades Iran's economic development policy has been to add to  its share of world trade. Therefore, the establishment of new possibilits of developing bilateral or multilateral trade relations of Iran with other countries and identifying opportunities and setting priorities for the development of trade relations with these countries is targeted.

The aim of this study is to investigate the possibility of expanding trade relations with South Asian countries. These countries include Afghanistan, Pakistan, Bangladesh, Sri Lanka, India, Maldives, Bhutan and Nepal. Therefore, in this study by using the revealed comparative advantage index the possibility of business development and by using a simple trade potential at 6-digit HS code level to determine the Iran’s commercial potential with these countries will be considered.

Following the calculation of comparative advantage index these results were obtained: Iran has comparative advantage  in 14 sections of exports. Import capacity of SAARC member countries  revealed about goods that Iran has revealed comparative advantage.  Also the request list of Iran from member countries of SAARC for preferential tariff were submitted.  Due to the lack of information on tariffs of Afghanistan, Bangladesh and Bhutan preferred list of goods in respect of these countries was not possible.