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Kambiz Mirkarimi, a member of the board of directors of the Iran-Russia Joint Chamber of Commerce, has projected that over 88% of commodities exchanged between Iran and the member states of the Eurasian Economic Union (EAEU) will soon be subject to zero tariffs within the next two months. This forecast comes amidst the facilitation of trade agreements between Iran and the EAEU, which are expected to streamline exporters’ access to target markets.
The EAEU includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Iran signed off an initial Free Trade Agreement in 2019. Mirkarimi emphasized the significance of the Free Trade Agreement (FTA) between Iran and the EAEU as one of the pivotal deals inked by Iran in recent years, noting that Iran’s exports to EAEU members reached approximately US$260 million in 2018. However, following the implementation of the FTA in 2019, the country’s exports to EAEU surged to over US$400 million, underscoring the transformative impact of the agreement.
Anticipating the ratification of the FTA by the parliaments of all EAEU member states within the coming two months, Mirkarimi outlined that trade tariffs on more than 88% of goods exchanged among Iran, Russia, and EAEU members will be reduced to zero. This development is poised to enhance the competitiveness of Iranian products vis-à-vis those from other countries like China and India, fostering a more favorable trade environment for Iranian exporters.
The signing of a permanent free trade agreement between the EAEU and Iran during the EAEU Summit in St. Petersburg on December 25, 2023, laid the groundwork for this advancement. Previously, in 2018, Iran and the EAEU had entered into a Preferential Trade Agreement (PTA), which took effect on October 27, 2019. Subsequently, negotiations were initiated to elevate the PTA to the level of a comprehensive Free Trade Agreement.
Further Reading
Russia-Iran 2024 Trade & Development
The Russia-Iran trade and development dynamics are comprehensively featured in our 2024 Russia’s Pivot to Asia guide, which is a complimentary download and can be accessed in English here and in Russian here.
