With the conclusion of free trade talks between Iran and the Eurasian Economic Union, the two sides will most likely start exchanging goods with zero tariffs as of the next Iranian year (starting March 21, 2023), says Alireza Peymanpak, the head of the Trade Promotion Organization of Iran.
“Over the past year, we have held nine rounds of negotiations with EEU member states. Currently, a preferential trade agreement is in force between us, as a result of which Iran-EEU trade increased from $2.3 billion in 2015 to around $5 billion in 2021,” he was quoted as saying by Mehr News Agency.
“The PTA has led to a 55% rise in exports to EEU over the last three years. Once FTA comes into effect, a market as big as $700 billion will open up to Iranian products and services.”
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.
“The Eurasian Economic Union and Iran are expected to arrive at a full-fledged agreement on creating a free trade zone in 2023,” Russian Economic Development Minister Maxim Reshetnikov was quoted as saying by Interfax recently.
"We expect that within the context of our negotiations - the fifth round of negotiations has already been held - we will already arrive at a permanent agreement on a free trade zone next year with a fundamentally broader reach and depth, since we understand that right now the conditions, situation and developed potential are really pushing us toward maximally deep cooperation," he said at the Second Caspian Economic Forum.
As part of the free trade agreement Iran is negotiating 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.
“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, out foreign trade will get a considerable boost,” Seyyedi was quoted as saying by IRNA.
H1 Trade Tops $1.59 Billion
Trade between Iran and the Eurasian Economic Union’s member states exceeded 3 million tons worth $1.59 billion during the current fiscal year’s first six months (March 21-Sept. 22), registering a 7.95% and a 28.58% rise in weight and value year-on-year, respectively, latest data released by the Islamic Republic of Iran Customs Administration show.
Russia was Iran’s main trade partner among countries under review with more than 2.08 million tons worth $1.21 billion, registering a 17.29% and a 33.67% growth in terms of weight and value, compared with the same period of last year, respectively.
It was followed by Armenia with 429,041 tons (down 33.19%) worth over 182.26 (up 7.07%) and Kazakhstan with 453,792 tons (up 33.33%) worth $155.177 million (up 38.54%).
Iran’s exports to EEU members reached 1.35 million tons worth over $622.38 during the period, registering a 3.53% decline in terms of weight, but a 13.56% growth in value year-on-year.
Russia with 621,534 tons (up 22.79%) worth $338.69 million (up 25.37%), Armenia with 426,316 tons (down 33.25%) worth $177.2 million (up 13.75%) and Kazakhstan with over 272,822 tons (up 14.91%) worth $155.11 million (down 5.69%) were the top export destinations.
Imports hit 1.65 million tons worth over $970.89 during the period, registering a 19.68 and a 40.48% growth in weight and value YOY.
Russia was also the main exporter to Iran with 1.46 million tons (up 15.1%) worth $876.16 million (up 37.19%). It was followed by Armenia with 180,969 tons (up 75.8%) worth $79.99 million (up 147.65%) and Belarus with 2,684 tons (up 275.42%) worth $6.6 million (up 51.23%).
$190m in Mineral Trade
Iran traded $190 million worth of mining and mineral products with member states of the Eurasian Economic Union in the fiscal 2021-22 (ended March 20), according to the Iranian Mines and Mining Industries Development and Renovation Organization.
Steel manufacturing chain products topped the list of traded goods with $80.96 million. It was followed by zinc with $19.53 million.
Iranian exports stood at $167.95 million during the period.
Steel manufacturing chain products topped the list with $75.2 million, followed by zinc with $19.53 million.
Imports hit $22.05 million in fiscal 2021-22.
Steel manufacturing chain products with $5.76 million and titanium with $1.29 million were the main imported products.
