Iran’s trade with Eurasian Economic Union’s member countries stood at $5.03 billion in the last fiscal year’s first 11 months (March 21, 2021-Feb. 19), registering a 48% growth compared with the corresponding period of last year, according to Hossein Kakhaki, a customs official.
Iran’s exports hit $1.08 billion, registering a 15% year-on-year rise.
Russia with $547.92 million topped the list of Iran’s export destinations in the EEU region, followed by Armenia with $278.73 million, Kazakhstan with $167.47 million, Kyrgyzstan with $74.08 million and Belarus with $16.23 million, IRNA reported.
Kakhaki noted that EEU member states exported $3.95 billion worth of goods to Iran during the same period, registering a 95% YOY rise.
Russia with $3.57 billion was the biggest EEU exporter to Iran during the period under review. It was followed by Kazakhstan with $342.35 million, Belarus with $27.77 million, Armenia with $7.77 million and Kyrgyzstan with $1.61 million.
Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan are EEU member states.
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 Eurasian Economic 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 listed 862 types of commodities in their three-year provisional trade agreement. As per the deal, Iran was to enjoy easier export terms and lower customs duties on 502 items and the same went for 360 items from EEU member states.
Exports Exempted From Customs Duties as of Sept. 2022
Iranian exports to the Eurasian Economic Union member states were exempted from customs tariffs as of September 2022, the managing director of Iran-EEU Export Consortium Center said.
“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 with the export of Iranian goods and guide traders on the demands of destination markets,” Amir Abbas Afsharamin was also quoted as saying by the Persian daily Ta’adol.
As per the agreement with EEU, said the official, the raw materials of 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 foodstuff, including dried nuts, dates, pasta, different types of pastry, chocolates and canned food, already have the required standards to be exported to EEU’s five member countries. We also have great potential in exports of faucet and textile,” 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 artifacts industry. Yet, there are shortcomings in the production chain of furniture regarding raw materials. To overcome this problem, an export consortium has been founded, which is mainly responsible for supplying to businesses active in the field with high quality raw materials, including fabric, sponge, particle boards and wood, at prices lower than those in our domestic market. This is the biggest agreement ever made with our furniture industry to procure certain raw materials and complete the production chain,” he said.
Interim Trade Agreement Extended Until 2025
The interim free trade agreement between the EEU and Iran has been extended until 2025, an official representative of the Eurasian Economic Commission, Iya Malkina, told a briefing for the press after the Supreme Eurasian Economic Council meeting on December 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."
Malkina recalled that negotiations concerning the full-fledged free trade agreement are based on the regime in force between the EEU and Iran in accordance with the interim agreement since October 2019.
In H1 2021, trade with Iran posted noticeable growth: Exports of EEU member states surged by almost 47% to total $1.35 billion and imports by 34% to $825 million. Trade between the EEU countries and Iran increased by 27% over the same period in 2019, as exports rose by 27% and imports by almost 70%.
The Supreme Eurasian Economic Council summit was held via videoconference. It was attended by Belarusian President Aleksandr Lukashenko.
Armenian Prime Minister Nikol Pashinyan endorsed an early conclusion of a full-fledged free trade agreement between Iran and the Eurasian Economic Union, ARKA news agency reported.
"A key component of the effective development of the EEU, highlighted in its development strategy, is expansion of 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 the 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.
"Within the framework of the Eurasian integration, a sufficiently stable institutional framework has been formulated, the common market is being established and there is certain success in the sphere of international cooperation," he said.
