Trade with Eurasian Economic Union (except for Iran’s crude oil exports) stood at 4.9 million tons worth $2.2 billion in the current fiscal year’s first nine months (March 21-Dec. 21), according to a report published by Tehran’s Chamber of Commerce, Industries, Mines and Agriculture.
Iran's trade balance with all Eurasian countries, except Russia, was positive, the report shows.
It also indicates that Iran’s trade balance with Russia, Armenia and Belarus weakened but improved with Kyrgyzstan and Kazakhstan compared with the corresponding period of last year.
Russia was Iran’s biggest trade partner among EEU member states during the period, while Belarus was the smallest. Russia accounted for 49.3% and 95.1% of the total export and import value respectively.
Exports to Russia hit $433 million while imports stood at $1.2 billion, registering a 29% and 45% year-on-year increase respectively. The figures resulted in a $285 million decline in Iran-Russia trade balance compared with last year’s Q1-3 period.
Iran’s total exports to EEU reached 2.1 million tons worth $878 million, as imports stood at 2.9 million tons worth 1.3 billion.
According to the report, trade value increased by 33% and the value of exports grew by 19.2% year-on-year.
Pistachio was a major non-oil exported commodity from Iran to EEU during the period with $99 million. In fact, pistachio accounted for 12% of the total value of Iran's exports to this group of countries during the period under review. It was followed by polystyrene, kiwi and pepper.
Imports surged by 44.7% during the period and the main reason was the rise in buying wheat, which accounted for 76% of total imports from EEU.
Crops and grains imports stood at 2.4 billion tons worth $811 million, accounting for 63% of Iran's import value from EEU.
The highest value of Iran's imports from this sector was registered for grains, which constituted about 97% of total imports in this category.
Customs Duties for Exports as of Sept. 2022
Iranian exports to the Eurasian Economic Union member states will be exempt from customs tariffs as of September 2022, says the managing director of Iran-EEU Export Consortium Center.
“Our exports need to measure up to the standards of the EEU market. To arrive at this goal, we have established offices in Moscow and Yerevan to help export Iranian goods and guide traders on the demands of destination markets,” Amir Abbas Afsharamin was also quoted by the Persian daily Ta’adol as saying.
As per the agreement with EEU, he added, raw materials of the end products destined for exports to the bloc will be procured meticulously so that Iranian products could compete with rivals in the Eurasian market.
“A lot of our processed food products, including dried nuts, dates, pasta, different types of pastry, chocolates and canned food, already have the required standards for export to EEU’s five member countries. We also have great potential in the export of faucet and textile. Unfortunately, most of Iran’s raw agricultural products do not meet EEU’s standards,” he said.
“Some of our dates, for example, are not disinfected on par with EEU standards. This is why the consortium has decided to step in and process such goods as demanded by these export destinations.”
Afsharamin noted that the consortium has rented shelves in chain stores across the bloc, as part of its measures to facilitate the export of Iranian products.
“Another field where Iranian businesses are capable of producing high quality products is the furniture and wooden artifact industry. Yet, there are shortcomings in the production chain of furniture regarding raw materials,” he said.
“To overcome this problem, an export consortium has been founded mainly to provide businesses active in the field with high quality raw materials, including fabric, sponge, particle boards and timber, at prices lower than those in our domestic market. This is the biggest agreement ever made with our furniture industry to procure specific raw materials and complete the production chain.”
Interim Trade Extended Until 2025
The interim free trade agreement between the Eurasian Economic Union and Iran has been extended until 2025, the official representative of the Eurasian Economic Commission, Iya Malkina, told a press briefing after the Supreme Eurasian Economic Council meeting on Dec. 10, BelTA reported.
"During the summit, the parties signed a protocol to the interim agreement leading to the formation of a free trade zone between the Eurasian Economic Union and Iran," she said.
"The interim agreement has been extended until Oct. 27, 2025, or until the free trade agreement enters into force, whichever comes first."
She recalled that negotiations on the full-fledged free trade agreement are based on the regime in force between EEU and Iran in accordance with the interim agreement since October 2019.
In H1 2021, trade with Iran posted high growth, as exports by EEU member states surged by almost 47% to total $1.35 billion and imports by 34% to $825 million. Trade between EEU countries and Iran increased by 27% over the same period in 2019: exports rose by 27% and imports by almost 70%.
The Supreme Eurasian Economic Council summit was held via videoconference that was attended by Belarusian President Aleksandr Lukashenko.
Armenian Prime Minister Nikol Pashinyan endorsed a speedy conclusion of a full-fledged free trade agreement between Iran and the Eurasian Economic Union in the videoconference, ARKA news agency reported.
"A key component of the effective development of EEU, highlighted in its development strategy, is expansion of the international cooperation and creation of a wide network of trade and economic relations. In this context, I think it is important once again to draw attention to the conclusion of a full-fledged free trade agreement between Iran and EEU as soon as possible," he said.
Pashinyan stressed that the provisional (free trade) agreement with Tehran has clearly shown the potential and prospects for further deepening of cooperation.
"And despite reaching mutually beneficial agreements on a number of issues during the first round of talks held in Yerevan in early November, the extension of the provisional agreement for this period is justified," he said.
Pashinyan stressed that during these years, different formats of cooperation with third countries have been worked out.
The solution to these problems, as the prime minister noted, is summed up in the main directions of EEU international activity for 2022, which fixes the key vectors and practical priorities of the union's international activity for the next year, emphasizing potentially promising areas.
"Within the framework of the Eurasian integration, a sufficiently stable institutional framework has been formulated, a common market is being established and there is certain success in the sphere of international cooperation," he said.
