Iran traded 3.46 million tons of non-oil commodities worth $1.81 billion with the five member states of Eurasian Economic Union, namely Russia, Kazakhstan, Armenia, Kyrgyzstan and Belarus, during the 11 months to Feb. 19, registering a 44.2% and 42.31% increase in tonnage and value respectively compared with last year’s corresponding period.
Latest data released by the Islamic Republic of Iran Customs Administration show Iran’s exports totaled 1.36 million tons worth $543.19 million during the period under review, indicating a 39.16% and 4.72% increase in tonnage and value respectively year-on-year.
Imports stood at 2.09 million tons worth $1.27 billion, up 47.69% and 68.08% in tonnage and value respectively YOY.
EEU is an international economic union comprising countries located in central and northern Asia and Eastern Europe. The founding member states, Belarus, Kazakhstan and Russia, established the union by treaty and entered into force on Jan. 1, 2015.
The bloc was created in part in response to the economic and political influence of the European Union and other western countries. Key objectives of EEU include increasing cooperation and economic competitiveness for the member states and the promotion of stable development to raise the standards of living in member states.
Main Commodities, Trading Partners
Iran mainly exported pistachios, kiwis, apples, tomatoes and dates to EEU countries.
In exchange, major commodities imported into Iran from EEU states included nuclear reactor parts, barley, field corn, sunflower oilseed, radio navigation devices and sheep carcasses.
In terms of total trade value, Russia topped the list among EEU countries as bilateral trade with Iran stood at 2.23 million tons worth $1.38 billion, up by 37.28% and 57.57% in tonnage and value respectively YOY.
Exports to Russia amounted to 428,560 tons worth $246.45 million to register a 2.45% and 5.98% growth in tonnage and value respectively YOY.
Russia was Iran’s top export destination among the countries under review and 16th in the whole world.
In return, Russia exported 1.8 million tons of commodities worth $1.13 billion to Iran, up by 49.35% and 76.12% in tonnage and value respectively YOY.
Russia was the top exporter of goods to Iran among EEU members and eighth among all countries. It mainly exported nuclear reactor parts, field corn, barley and sunflower oilseed to Iran.
Major Iranian commodities exported to Russia were kiwi, apples, tomatoes and pistachios.
Kazakhstan was Iran’s second biggest trading partner among EEU nations during the 11 months, as two-way commercial exchanges stood at 683,461 tons worth $200.05 million to register a 47.99% rise in tonnage and 0.15% decline in value YOY.
Iran exported 414,741 tons of goods worth $120.82 million to Kazakhstan, up 43.54% in tonnage and down 18.04% in value YOY.
Kazakhstan was Iran’s third export destination among EEU and 29th among all countries during the period.
Iran’s exports to Kazakhstan mainly included pistachios, dates and Portland cement.
Iran imported 268,719 tons of commodities worth $79.23 million from Kazakhstan, up by 55.44% and 49.67% in tonnage and value respectively YOY, most of which were barley, sheep carcasses and colza seeds.
Kazakhstan was the second exporter of goods to Iran among the countries under review and 35th exporter to Iran globally.
Armenia was Iran’s third major trading partner among EEU states.
Mutual trade between Iran and Armenia amounted to 511,589 tons worth $165.46 million, indicating an 88.03% and 30.32% rise in tonnage and value respectively YOY.
Iran’s exports reached 506,714 tons worth $143.46 million, up 95.91% and 39.03% in tonnage and value respectively YOY, while Armenia’s exports to Iran were at 4,875 tons worth $21.99 million, down by 63.7% and 7.46% in tonnage and value respectively YOY.
Armenia was Iran’s second export destination as well as the fourth exporter of goods to Iran among EEU members. The country was Iran’s 26th export destination and 58th exporter to Iran among all countries.
Bitumen, liquefied natural gas, pistachios and non-alloy semi-finished iron/steel products were Iran’s main goods exported to Armenia, while Armenia exported mainly sheep carcasses, pharmaceuticals, vehicles and sensors to Iran.
Belarus was the third biggest exporter to Iran, after Russia and Kazakhstan, among EEU countries and 57th globally, as Iran imported 11,219 tons worth $22.55 million from Belarus during the period, down by 40.15% and 19.15% in tonnage and value respectively YOY.
Iran mainly imported yarn, monocular and rubber from Belarus.
Highest Growth, Decline in Trade
Trade with Russia (at $1.38 billion) and Armenia (at $165.46 million) saw the highest YOY growth of 57.57% and 30.32% respectively, while trade with Belarus (at $24.88 million) and Kyrgyzstan (at $38.73 million) witnessed the lowest decline of 15.74% and 0.83% respectively.
Iran’s exports to Belarus (at $2.32 million) and Armenia (at $143.46 million) saw the highest growth of 42.77% and 39.03% respectively, while exports to Kazakhstan (at $120.82 million) and Kyrgyzstan (at $30.12 million) witnessed the highest decline of 18.04% and 11.26% respectively.
Imports from Russia (at $1.13 billion), Kyrgyzstan (at $8.61 million) and Kazakhstan (at $79.23 million) saw a highest growth of 76.12%, 68.38% and 49.67% respectively while imports from Belarus (at $22.55 million) and Armenia (at $21.99 million) witnessed the highest decline of 19.15% and 7.46% respectively.
Iran-EEU Free Trade Deal
Iran and the Eurasian Economic Union are looking to substantially increase trade, as the two sides signed a three-year provisional agreement on May 17, 2018, for the bloc to welcome Iran into EEU.
The arrangement is the first step in implementing free trade between Iran and the five members of the union. It lowers or abolishes customs duties, setting off a three-year process for a permanent trade agreement.
Russian Ministry of Industry and Trade says a full-fledged agreement on a free trade zone between Iran and the Eurasian Economic Union will be concluded by early 2022.
According to the ministry, the interim agreement signed in May covers 50% of the trade between the parties and will enter into force in early 2019.
As per the terms of the deal, Iran, which is not a member of World Trade Organization, will assume obligations stipulated by this organization, which will make its trade with EEU members more transparent and predictable.
The deal’s main advantages, the ministry noted, is a reduction in import duties and the formation of a “transparent and predictable trade environment”. This will be because all countries, including Belarus and Iran, which are not members of WTO, have agreed to adhere to the rules of this organization.
The free trade zone treaty can come to the aid of Iranian producers to export to Europe using preferential trade agreements that some of the Union’s member states such as Kyrgyzstan have with the European Union.
