Trade between Iran and the Eurasian Economic Union’s member states exceeded 3.38 million tons worth $1.8 billion during the current Iranian year’s first seven months (March 21-Oct. 22), data released by the Islamic Republic of Iran Customs Administration show.
Russia was Iran’s main trade partner among the countries under review with more than 2.3 million tons worth $1.32 billion. It was followed by Armenia with 524,076 tons worth 229.84 million and Kazakhstan with 506,724 tons worth $181.28 million.
Iran’s exports to EEU members stood at 1.63 million tons worth $760.25 million during the period.
Russia with 761,062 tons worth $402.25 million, Armenia with 520,288 tons worth $222.24 million and Kazakhstan with 305,354 tons worth $93.01 million were the top export destinations.
Imports hit 1.75 million tons worth $1.04 billion during the period.
Russia was also the main exporter to Iran with 1.53 million tons worth $923.62 million. It was followed by Armenia with 201,370 tons worth $88.27 million and Belarus with 10,188 tons worth $21.79 million.
Free Trade as of March
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), Alireza Peymanpak, the head of Trade Promotion Organization of Iran, said recently.
“Over the past year, we have held nine rounds of negotiations with EEU member states. There is currently a preferential trade agreement in effect 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 also 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 the 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.
EEU 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 on 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.
Tehran to Host Iran-EEU Economic Diplomacy Confab
Tehran Chamber of Commerce, industries, Mines and Agriculture, in cooperation with other chambers of commerce across the country and joint chambers of the Eurasian side, is organizing the Third Iran-EEU Economic Diplomacy Conference focused on trade and investment in the field of agrifood industries in December.
The two previous events were held in the fiscal 2020-21 with the aim of developing Iran’s trade relations with this union.
This event has been scheduled for Dec. 4 with the participation of foreign trade officials and the support of Iranian chambers of commerce, joint chambers with the Eurasian Union, agricultural and food industry organizations, and experts from the member countries of this union. It will be held at the IRIB International Conference Center, the news portal of TCCIM reported.
The conference will examine the opportunities and risks of free trade between Iran and EEU.
TCCIM is also organizing B2B meetings on the sidelines of the conference.
EEU is an economic union of some post-Soviet states located in Eurasia. The Treaty on the Eurasian Economic Union was signed on May 24, 2014, by the leaders of Belarus, Kazakhstan and Russia, and came into force on Jan. 1, 2015. Treaties aiming for Armenia's and Kyrgyzstan's accession to the Eurasian Economic Union were signed on Oct. 9 and Dec. 23, 2014, respectively. Armenia's accession treaty came into force on Jan. 2, 2015. Kyrgyzstan's accession treaty came into effect on Aug. 6, 2015.
The union has an integrated single market of 184 million people and a gross domestic product of over $1.9 trillion. It encourages the free movement of goods and services, and provides common policies in the macroeconomic sphere, transport, industry and agriculture, energy, foreign trade and investment, customs, technical regulation, competition, and antitrust regulation.
