Iran's trade with EAEU increases 2.5 times since 2020
Date
10/6/2024 9:15:22 AM
(MENAFN) Iran's trade with the Eurasian Economic Union (EAEU) has seen significant growth, increasing by 2.5 times over the past four years, according to Mohammad-Ali Dehghan Dehnavi, the head of Iran’s Trade Promotion Organization (TPO). Speaking at a meeting with members of the Tehran Chamber of Commerce, Industries, Mines, and Agriculture (TCCIMA), Dehghan Dehnavi highlighted that Iran's preferential trade agreement with the EAEU, initiated four years ago, has led to reduced or zero tariffs on exported goods. This development has played a key role in expanding trade with member countries of the EAEU.
Dehghan Dehnavi also mentioned that a Free Trade Agreement (FTA) with the EAEU has been reached, which is now in the process of being implemented. He explained that three out of the five member countries of the EAEU have already approved the agreement, which is now under review by the Iranian parliament. The FTA is expected to remove tariffs on 87 percent of goods, opening up new opportunities for Iranian businesses in the competitive Eurasian market, while also enabling EAEU member countries to supply their goods to Iran.
TCCIMA Secretary General Bahman Eshghi emphasized the importance of increasing Iran’s exports to address the country’s trade imbalance. He noted that last year, Iran's trade balance showed a deficit of USD17 billion, and this imbalance needs to be corrected by boosting exports. Eshghi stressed that reducing the gap between exports and imports will help address other economic imbalances in the country. He also called for regular meetings between the Trade Promotion Organization and Iranian traders and exporters to facilitate greater interaction and address the challenges faced by the private sector.
Furthermore, Eshghi referred to an agreement between the TCCIMA and the Trade Promotion Organization aimed at resolving the major issues faced by Iranian exporters. The draft of this agreement has been prepared and will soon be submitted to the TPO. The objective of this agreement is to reduce government interventions in the export sector and provide solutions to the challenges faced by Iranian businesses. The EAEU, established in 2015 with Russia, Kazakhstan, and Belarus as founding members, later welcomed Armenia and Kyrgyzstan. Iran's preferential trade agreement with the EAEU, covering 862 commodity items, took effect in 2019.
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