Iran and the Eurasian Economic Union member states traded 8.68 million tons of commodities worth $3.4 billion in the last Iranian year (March 2020-21), according to the head of the Islamic Republic of Iran Customs Administration.
“Iran exported close to 2.68 million tons worth $1.05 billion to EEU states over the period, registering a 2% decline in value compared with the year before,” Mehdi Mirashrafi was also quoted as saying by IRNA.
Imports from the bloc stood at 6 million tons worth $2.36 billion during the same period, showing a year-on-year decline of 1% in value.
“The decline in trade was due to restrictions concerning the Covid-19 pandemic as well as economic sanctions imposed on the country.”
Russia was Iran’s biggest trade partner among EEU member states.
Imports from Russia stood at 5.24 million tons worth $2.11 billion (89% of Iran’s total imports from EEU) as exports reached 1.06 million tons worth $509.91 million (48% of overall exports).
Russia was followed by Kazakhstan with 741,510 tons worth $201.21 million of exports to Iran and 337,075 tons worth $167.99 million of imports.
Next was Armenia with $17.32 million and $304.55 million worth of exports to and imports from Iran respectively.
Belarus came next with $31.22 million and $21.11 million worth of exports and imports respectively.
Kyrgyzstan came last with $2.57 million and $45.85 million worth of exports and imports respectively.
Based on figures released by Tehran Chamber of Commerce, Industries, Mines and Agriculture, Iran and the Eurasian Economic Union member states traded $2.1 billion worth of non-oil commodities during the last Iranian year, which show an 11% decline compared with the year before.
Based on the report, Iran’s non-oil exports to EEU amounted to $1.1 billion, registering a 4% fall compared with the previous year. Imports from the Eurasian bloc stood at $1 billion, showing a 16.5% decrease YOY.
Iran’s exports at preferential tariffs stood at $256 million, accounting for close to 25% of the country’s exports over the period under review.
TCCIM’s report also attributed the decline in non-oil trade to the outbreak of the Covid-19 pandemic.
EEU member states include Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan.
Iran and the Eurasian Economic Union signed a three-year provisional agreement in Astana, Kazakhstan, on May 17, 2018, for the bloc to welcome Iran into EEU. The arrangement, which lowers or abolishes customs duties, is the first step toward implementing free trade between Iran and the five members of the union. The PTA came into effect on October 27, 2019.
Iran Chamber of Commerce, Industries, Mines and Agriculture recently reviewed Iran’s trade with EEU from the fiscal 2016-17 to 2020-21.
The study shows the highest volume of trade between the two sides during the period was in the fiscal 2019-20 and the lowest was in the fiscal 2016-17.
The highest trade balance was registered in the fiscal 2020-21 with a deficit of $93 million.
The average tariff set by the Eurasian Economic Union on Iranian goods as part of the preferential trade agreement stands at 3.1%, while the figure is 12.9% for EEU goods exported to Iran.
Iran and EEU have listed 862 types of commodities in their three-year provisional trade agreement. As per the deal, Iran will enjoy easier export terms and lower customs duties on 502 items and the same goes for 360 items from EEU member states. EEU removed tariffs on the import of 11 Iranian agricultural and food products in April and conveyed the decision to the Trade Promotion Organization of Iran.
“These goods that can, from now on, be exported at a zero tariff include potato, onion, garlic, cabbage, carrot, chili, wheat, grains, rice and ready-to-eat meals for kids. The measure taken by EEU in these difficult times when the country is battling the Covid-19 crisis, in addition to economic sanctions, can help boost our production and exports,” Reza Nourani, the head of Iran’s National Association for Agricultural Products, was quoted as saying by Fars News Agency.
Iran and the Eurasian Economic Union are holding talks on abolishing customs duties to reach free trade with zero tariffs.
“Negotiations on free trade with zero tariffs have been continuing between Iran and EEU since last week … If this goal is achieved, we will find access to an unrivaled market because EEU only has preferential agreements with Vietnam, Singapore and Serbia,” Seyyedi said recently.
“Such an achievement will bring positive results to our economic interaction in the region. Enhancing trade with EEU will facilitate our trade and financial interactions,” he concluded.
