Iran, EAEU Members to Launch FTA in 2 Months: Official

A member of the Iran-Russia Joint Chamber of Commerce anticipated that more than 88% of commodities will be exchanged between Iran and the Eurasian Economic Union’s member states with zero tariffs within the next two months.

The free trade agreements between countries will facilitate the exporters’ access to the target market, a member of the board of directors of the Iran-Russia Joint Chamber of Commerce, Kambiz Mirkarimi said.

He noted that a Free Trade Agreement between Iran and the Eurasian Economic Union’s members, including Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia, was one of the most important deals signed by the country in recent years.

Iran’s exports to the EAEU members stood at about US$260 million until 2018, but after the implementation of the FTA in 2019, the country’s exports to these countries immediately increased to above US$400 million, he said.

It is expected that the FTA will be ratified by the parliaments of all member states of the union within the next two months, he said, noting that trade tariffs on more than 88% of the goods exchanged among Iran, Russia, and EAEU members will be reduced to zero.

This development will increase the competitiveness of Iranian products against the goods made in China, India, and other rivals, Mirkarimi stated. The free trade agreement between the EAEU and Iran was signed during the EAEU Summit in St. Petersburg on December 25, 2023, Mehr reported.

In 2018, Iran and the EAEU inked a Preferential Trade Agreement (PTA), which came into effect on October 27, 2019. The two sides later began negotiations to upgrade the PTA to an FTA. - Mehr