Iran-Eurasia free trade to take effect in mid-May
Rial-based SWIFT system operational
Iran and the Eurasian Economic Union (EAEU) member states are about to launch a landmark zero-tariff free trade agreement next month, marking a historic leap in regional economic integration after seven years of negotiations.
“Under the finalized agreement, the implementation of a zero-tariff free trade regime between Iran and member states of the Eurasian Economic Union (EAEU) will commence simultaneously in Iran and EAEU countries on May 15, 2024,” Mirhadi Seyedi, an advisor for international affairs and trade agreements at Iran’s Trade Promotion Organization (TPO) announced.
In an interview with Tasnim, Seyedi stated that the free trade agreement between Iran and the five-member Eurasian Economic Union — comprising Russia, Kazakhstan, Kyrgyzstan, Belarus, and Armenia — was ratified by the parliaments of all six countries after nearly seven years of negotiations and was officially notified on March 16.
“Per the agreement, implementation begins 60 days after the final ratification by all parties. Following coordinated efforts, the agreement will take effect simultaneously in Iran and EAEU countries on May 15,” he added.
Regarding expectations for the agreement, Seyedi said, “Over half of global trade currently occurs under similar agreements, which eliminate or reduce tariffs between nations. This framework provides a more secure and cost-effective pathway for commercial goods.”
Emphasizing the agreement’s significance for Iran, he explained, “This marks the first time Iran has implemented such a comprehensive agreement, reducing customs tariffs to zero. The deal effectively comprises five distinct agreements between Iran and each of the five Eurasian states.”
“Once implemented, 87% of Iran’s exported goods to these five countries will benefit from zero customs tariffs. This will substantially facilitate and accelerate trade between Iran and the EAEU member states,” Seyedi continued.
Rial-based SWIFT system
Seyedi also highlighted financial advancements, stating, “In the realm of financial facilitation, a Rial- and Ruble-based SWIFT system has been established, enabling financial transfers between Iran and other countries, particularly Russia. Additionally, Iran’s National Bank has revolutionized financial transactions by founding the Mir Business Bank in Russia.”
Concluding his remarks, Seyedi noted, “This agreement, which builds on interim accords dating back to October–November 2019, has already driven significant improvements in transportation and financial exchanges between Iran and Eurasian nations.”