Iran-Eurasia trade hits $5b
Iran’s total trade with the five Eurasian countries has surged from nearly $2 billion before the implementation of a 2023 trade agreement to $5 billion, according to a senior official.
Mehdi Seyedi, advisor for international affairs and trade agreements at Trade Promotion Organization, explained that over 87% of goods are covered under the free trade agreement, which reduces customs tariffs to zero.
“We expect the implementation of this agreement to significantly boost trade volume between both sides,” Seyedi noted.
He highlighted that during the first year of the Eurasian agreement—from October 27, 2019, to October 27, 2020—Iran saw an 82% increase in exports on items that benefited from tariff reductions, which expanded trade with Eurasian nations.
Seyedi added that the positive results encouraged Iran to initiate negotiations on November 2, 2020, to convert the agreement into a comprehensive free trade deal with the Eurasian Economic Union (EAEU).
The negotiations spanned more than three years, culminating in the signing of the free trade agreement on December 25, 2023, in St. Petersburg, Russia.
Seyedi emphasized, “This is the first agreement in which customs tariffs on more than 80% of goods are reduced to zero.”
Export growth among
top priorities
According to IRNA, one of the key objectives of Iran’s sitting administration is to enhance trade and economic ties with neighboring countries and boost exports.
In the administration’s first 100 days (started July 31), the value of exports from the industrial, metal, and non-metal mining sectors reached $4.569 billion.
The government has prioritized increasing revenue from non-oil exports, expanding trade relations with target countries, and supporting domestic production by importing essential goods and machinery.
Strengthened trade ties with neighboring countries and new trade agreements have led to industrial exports reaching $2.091 billion, with a total weight of 1.91 million tons.
The Ministry of Industry, Mining, and Trade reported that exports of metal mining products amounted to $2.142 billion, with a total weight of 2.807 million tons, while non-metal mining exports totaled $335 million, with a volume of 4.776 million tons.
Additionally, technical and engineering service exports during the same period reached $525 million, underscoring significant progress.
Key achievements include the revision of the free trade agreement with Syria, the implementation of a preferential trade agreement with Turkey, and the renewal of a similar agreement with Uzbekistan—all part of the administration’s strategy to expand exports and bolster the industrial sector.