A total of $334 million worth of agricultural products were exported to Eurasian Economic Union member states, during the first eight months of the current Iranian year (March 20-Nov. 20), registering a 53% rise compared with the similar period of last year, according to the director general of European and American Commercial Affairs Department with the Trade Promotion Organization of Iran.
“Our main export products to EEU’s five member countries over the period were pistachio, peach, apple, grapes, sour cherries, kiwi, pepper, dates and raisin,” Behrouz Hassan Olfat was also quoted as saying by ILNA.
The official noted that exports to Belarus, Kazakhstan and Russia saw the highest increase in value in a descending order.
A total of 5.45 million tons of agricultural products worth $3.84 billion were exported from Iran during the first eight months of the current Iranian year, showing a 27% and 13% growth in weight and value respectively compared with the similar period of last year, according to the technical affairs deputy with the Islamic Republic of Iran Customs Administration.
Agro products accounted for 7.26% and 18.87% of the volume and value of Iran’s overall exports respectively during the eight-month period.
“Our main exported products were unshelled and shelled pistachio, tomato and tomato paste, watermelon and apple, which together made up close to 1.52 million tons of the total agro exports worth $1.31 billion. Exports of these products registered a 7% and 30% increase in volume and value respectively year-on-year,” Mehrdad Jamal Orounaqi was quoted as saying by IRNA.
The official said exports of unshelled pistachio stood at 109,000 tons worth more than $675 million during the eight-month period, showing an 82% rise in value compared with the corresponding period of last year. Exports of shelled pistachio, he added, amounted to 10,000 tons worth $118 million, indicating a 37% rise in value YOY.
Some 175,000 tons of tomato paste worth $133 million tons were exported over the same period, showing a 128% and 49% YOY increase, respectively.
Apple exports reached 291,000 tons worth $105 million, registering a 55% rise and a 6.25% fall in weight and value respectively compared with the corresponding period of last year.
Trade Agreement
The preferential trade agreement signed between Iran and EEU has had a significant impact on increasing agricultural exports to the bloc and if it were not because of the restrictions caused by the outbreak of the Covid-19 pandemic, Iranian exports would have recorded higher figures.
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 average tariff set by EEU on Iranian goods as part of a 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.
The union 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 in an official letter.
“Goods that can, from now on, be exported at 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, as the country is battling the Covid-19 crisis and facing 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.
The EEU member states include Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan.
Bilateral Trade Rising Despite Coronavirus
Countries of the Eurasian Economic Union and Iran are increasing their mutual trade, despite the coronavirus pandemic, according to the Eurasian Economic Commission.
For eight months of 2020, trade increased by 2% and exceeded $2 billion. An inncrease in imports from Iran by almost $230 million has made the main contribution to the growth, 24.kg reported.
Agricultural products form the basis of mutual trade. Food products and agricultural raw materials accounted for about 80% ($939 million) of the volume of supplies from EEU states to Iran. In return, similar goods accounted for most of the supplies from Iran to the union — 68%, or $575 million.
Fruits and nuts became the main drivers of import growth from Iran.
