Minister: Tariffs on 78% of Iran-Eurasian trade reduced to zero
The Iranian Minister of Industry, Mine, and Trade announced significant developments in Iran’s free trade with the Eurasian Economic Union (EAEU), highlighting that 87% of goods traded between Iran and EAEU members currently benefit from zero tariffs.
Speaking on Sunday, Seyed Mohammad Atabak discussed the outcomes of his recent trip to Russia and participation in the EAEU summit in St. Petersburg, IRNA reported.
He emphasized that Iran’s observer membership in the EAEU was a key item on the meeting’s agenda, adding, “This membership is significant due to the large-scale economies of the member states and their collective $900 billion trade volume globally.”
Atabak noted that during the meeting, discussions were held with senior officials, including an Armenian deputy prime minister.
The minister also pointed out that the Iranian Parliament has ratified the Free Trade Agreement (FTA) with the EAEU, and it has been approved by the parliaments of the five EAEU member states, including Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia.
On Iran’s acceptance into the EAEU, Atabak stated, “Iran’s inclusion in this union means our formal participation in all its sessions, enabling us to exchange trade information and discuss economic issues with other members.”
Highlighting the role of the private sector in Eurasian countries, Atabak stressed the need to facilitate the private sector’s involvement in these markets.
He noted a significant increase in Iranian exports to EAEU countries in recent months, although he described the current level as insufficient.
The free trade agreement, the minister said, has the potential to multiply trade exchanges and commercial interactions.
“Eurasia offers a strong market for Iranian goods,” Atabak added. “Additionally, Iranian technical and engineering services have considerable potential for expansion in these countries.”
The minister further underlined the role of the Trade Promotion Organization in supporting the private sector by establishing marketplaces, fairs, and exhibitions.
“This effort should simplify consular procedures to enable private sector participation in exhibitions,” he said.
Atabak announced that an upcoming exhibition in Tehran will feature participation from EAEU member states, with countries like Armenia and Uzbekistan already expressing interest in attending.
Regarding the activities of Iranian techno-engineering firms abroad, Atabak stated that many of these companies have a proven track record in Iran and are well-positioned to expand into neighboring countries.
“However, the main challenge for these firms is obtaining guarantees for international tenders, he said.
“President Massoud Pezeshkian is personally pursuing legislation to facilitate the issuance of guarantees needed for Iranian techno-engineering services to participate in international projects,” he noted.
Iran-EAEU trade
Head of Iran Export Confederation Mohammad Lahouti announced that Iran’s trade with the Eurasian Economic Union (EAEU) increased by 20% in the first nine months of the current Iranian calendar year (late March to late December 2024) compared to the same period last year.
Lahouti said in an interview with the IRNA on Saturday that the value of Iran’s exports to EAEU member countries had reached $1.5 billion in April-December.
Iran’s imports from the bloc also rose to $1.6 billion, he added.
Previous reports had suggested that imports of goods and commodities from the EAEU to Iran had increased by 16% year on year in the first 10 months of 2024 while exports from Iran to the bloc had risen by 8% over the same period.
The figures showed that trade had nearly doubled since the implementation of a preferential trade agreement between the EAEU and Iran in 2018.