Iran and the Eurasian Economic Union traded $1.32 billion worth of goods (excluding crude oil) during the first five months of the current Iranian year (March 21-Aug. 22), registering a 30% increase compared with the corresponding period of last year, according to the head of the Islamic Republic of Iran Customs Administration.
“Iran’s export reached $522.14 million, indicating a 15% year-on-year rise while imports hit $804.25 million, showing a 43% rise,” Alireza Moqaddesi was also quoted as saying by IRNA.
Russia was Iran’s biggest export destination among EEU member states during the period with $291.23 million worth of imports, followed by Armenia with $144.1 million, Kazakhstan with $61.2 million, Kyrgyzstan with $18.42 million and Belarus with $7.18 million.
Iran’s main products exported to EEU countries were fresh pistachios, fruits, vegetables, plastic products, steel and cast iron.
Russia also topped the list of EEU exporters to Iran during the period with $715.36 million. It was followed by Kazakhstan with $78.42 million, Belarus with $3.88 million, Armenia with $3.86 million and Kyrgyzstan with $2.72 million worth of exports.
Iran mainly imported vegetable oils, animal fat, grains, wood, vegetables, chemicals and mineral products from EEU.
Iran registered $282.11 million in trade deficit with EEU during the period, the above data indicate.
Iran’s commercial attache in Armenia, Akbar Godari, told the Islamic Republic of Iran Broadcasting that last year, Iran and EEU member countries have held nine rounds of negotiations to discuss and pave the way for a free trade agreement.
The next round of talks on a full-fledged free trade agreement between the Eurasian Economic Union and Iran will take place in Moscow at the end of September. The decision was reached at a recent meeting of a member of the board for trade of the Eurasian Economic Commission, Andrey Slepnev, with Iranian Deputy Minister of Industries, Mining and Trade Alireza Peymanpak, BelTA learned from the EEC press service..
According to Slepnev, significant progress in the transition to settlements in national currencies has been of special importance in the current environment.
“The latest key positive development has been the start of trade in the “ruble-rial” currency pairs,” the EEC official said.
The parties outlined another schedule for negotiations on the future agreement.
“We expect significant progress in the tariff part, which will bring the final stage of the negotiation process closer,” Slepnev said.
In 2021, trade between EEU and Iran increased by 73% compared to 2020, exceeding $5 billion, while exports of EEU member states more than doubled (from $1.65 billion to $3.42 billion) and imports went up by 29% (from $1.25 billion to $1.6 billion).
As part of the free trade agreement Iran is negotiating with the Eurasian Economic Union, 80% of goods traded between the two sides will be entitled to zero customs tariffs, according to Mirhadi Seyyedi, advisor to Trade Promotion Organization of Iran for international affairs and trade treaties. He is the lead negotiator in talks with EEU.
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 has lowered or abolished customs duties, is the first step toward implementing free trade between Iran and the five members of the union.
“Never before have we had an agreement as inclusive as this [the prospective free trade deal with EEU]. Clearly, when the provisional agreement is upgraded to a free trade treaty, our foreign trade will get a considerable boost,” Seyyedi was quoted as saying by IRNA.
