The implementation of an agreement between Iran and the EAEU on a free trade zone will boost trade and economic cooperation between Tehran and the union’s member states, Iranian Foreign Ministry spokesman Esmaeil Baghaei told RIA Novosti on Monday.
Russian Deputy Prime Minister Alexei Overchuk said late in March that Iran and the EAEU would start implementing the Free Trade Agreement (FTA) on May 15, according to Press TV.
“The implementation of this agreement between Iran and the EAEU member states will result in a substantial increase in trade and economic exchanges between Iran and the five countries,” Baghaei said.
He added that Iran is keen to make use of every opportunity to enhance the effectiveness of the potential of each of the union’s member countries.
The Iranian spokesperson noted that Iran attaches great significance to the EAEU, which comprises Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan.
The EAEU serves as a foundation for strengthening economic and commercial ties between Tehran and the union’s member states.
Iran and the EAEU signed the agreement in Saint Petersburg on December 25, 2023. Its objective is to facilitate and streamline trade between the EAEU countries and Iran by reducing or eliminating tariff and non-tariff obstacles, and fostering economic and commercial cooperation.
The agreement will allow Iran and EAEU members to cut to zero the export and import tariffs for some 87% of the goods they trade. Trade for the remaining 13% of the commodities and goods will still be carried out under a tariff system.
According to the Russian deputy prime minister, the Iran- EAEU free trade zone agreement will enable Russian businesses to save 300 million dollars annually in duties. It will also open up more than 90 percent of product categories for trade with Iran and the Russian Federation, creating favorable conditions for trade growth.
Iran and the EAEU had signed a three-year preferential trade agreement (PTA) in 2019, some five years after Iran was invited to join the bloc.
The PTA allowed Iran to offer tariff reduction on 380 goods it imported from EAEU countries while being able to enjoy the same discounts for 502 goods it exported to the bloc.
Iran, which recently gained observer status in the EAEU, is seeking to deepen ties with the economic bloc.
MNA
