Iran and Eurasian Economic Union member states traded a total of $1.9 billion worth of commodities, excluding crude oil, during the first 11 months of last Iranian year (March 20, 2020-Feb. 18) to register a 9.4% decline year-on-year, data released by Tehran Chamber of Commerce, Industries, Mines and Agriculture show.
The figure accounts for close to 3% of Iran’s total foreign trade over the period, Mehr News Agency reported.
Iran’s exports to EEU members hit 2.4 million tons of non-oil products worth $933 million, registering a 17% and 4% year-on-year decrease in volume and value respectively.
Exports from EEU states to Iran stood at 2.9 million tons worth $1 billion, showing a 1% increase in weight and a 14% decline in value YOY.
The biggest EEU exporter to Iran was Russia with $954 million, registering a 7% decline YOY.
Iran’s trade deficit with EEU member countries stood at $84 million over the 11-month period under review.
Iran and the Eurasian Economic Union are holding talks on abolishing customs duties to achieve free trade with zero tariffs.
“Negotiations on free trade with zero tariffs have been going on between Iran and EEU since last week … If this goal is achieved, we will enter an unrivaled market because EEU only has preferential agreements with Vietnam, Singapore and Serbia,” Mirhadi Seyyedi, the advisor for international affairs and trade agreements of the Trade Promotion Organization of Iran, said recently.
“Such an achievement will bring positive fruits to our economic interaction in the region,” he added.
The official stressed that enhancing trade with EEU will facilitate Iran’s financial interactions.
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 the union 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.
EEU removed tariffs on the import of 11 Iranian agricultural and food products in April. It conveyed the decision to the Trade Promotion Organization of Iran in an official letter.
“These 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 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.
The Eurasian Economic Union member states include Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan. The bloc was created partly in response to the economic and political influence of the European Union and other western countries.
Key objectives of EEU include increasing cooperation and economic competitiveness for member states and promoting stable development to raise their standards of living.
