Iran and Azerbaijan are expanding economic cooperation through new customs agreements, infrastructure projects and investment initiatives. The partnership aims to increase trade while strengthening transport links between the Caucasus, Central Asia and the Persian Gulf.
A major focus remains the Bileh Savar border crossing in Ardabil Province. The 24-hour crossing recorded approximately $268 million in Iranian exports during the past year.
Iranian Customs chief Foroud Asgari and Azerbaijan’s customs chief Shahin Baghirov recently signed an agreement. The memorandum seeks to accelerate customs procedures and improve the movement of commercial and transit goods.
Officials identified border congestion as a major challenge for bilateral trade. Therefore, both countries plan to improve procedures and complete infrastructure projects at key crossings.
New bridges at Astara and Nakhchivan could significantly improve truck movements between the neighboring countries. Additionally, direct online communication between customs officials should help resolve operational problems more quickly.
Ardabil Province shares 382 kilometers of border with Azerbaijan and remains central to bilateral economic activity. The province produces about 4.5 million tons of agricultural products annually.
Ardabil accounts for roughly 25 percent of Iran’s tire production and 30 percent of mineral water output. Governor-General Masoud Emami Yeganeh has consequently prioritized stronger economic relations with Azerbaijan.
Beyond border trade, Iran and Azerbaijan have established cooperation across ten economic sectors. These areas include transportation, energy, water, tourism, agriculture, customs, industry and investment.
Transport projects include the Kalaleh-Aghband bridge, Astara bridge and several road and railway developments. Moreover, Iran aims to increase transit through the western branch of the International North-South Transport Corridor.
Iran has set a target of 15 million tons of annual transit through this route by 2030. Currently, around 120,000 Iranian trucks cross Azerbaijan annually, while more than 50,000 Azerbaijani trucks enter Iran.
Bilateral trade reached approximately $650 million during the past two years. Consequently, officials expect improved infrastructure and customs coordination to support further growth.
Investment cooperation is also developing through plans for a joint investment committee. Azerbaijan has additionally invited Iranian companies and investors to participate in its September 2026 investment summit.
Looking ahead, completing infrastructure projects and reducing border delays will determine the partnership’s success. If current momentum continues, Iran-Azerbaijan trade cooperation could strengthen regional commerce and transit connectivity.