Iranian lawmakers address inconsistencies in PTA deal with Indonesia


(MENAFN) Iranian lawmakers have addressed inconsistencies in the preferential trade agreement (PTA) with Indonesia, following earlier objections by Iran’s Guardian Council. The Iranian Parliament, or Majlis, revised the PTA after its approval in mid-May to rectify issues identified by the Council. The agreement aims to facilitate trade by reducing tariffs on certain Iranian imports, such as textiles, processed food, and pharmaceuticals from Indonesia, while providing Indonesian products with better access to Iranian markets.

The PTA is part of a broader strategy to integrate economies globally, enhancing trade relations and market access. Indonesia, a significant consumption market and a member of the World Trade Organization (WTO), offers valuable opportunities for Iranian exports due to its relatively low import tariffs. This access aligns with Iran's efforts to bolster economic ties through preferential trade agreements, including those with the Eurasian Economic Union (EAEU) and Pakistan, which feature zero tariffs on various items.

Historically, Iran's trade with Indonesia peaked in the Iranian calendar year 1400 (ending March 20, 2022), marking a significant milestone in bilateral trade relations. During this period, Iran's exports to Indonesia reached their highest value in a decade, totaling USD1.081 billion. This growth reflects a strong upward trend in trade, with exports increasing from USD60 million in 1392 to over USD1 billion in 1400, underscoring the growing economic potential between the two nations.

Iran's recent focus on signing preferential trade agreements highlights its commitment to expanding economic relations and leveraging favorable trade terms. These agreements aim to enhance market access and reduce trade barriers, fostering a more dynamic and integrated global trade environment.

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