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Saturday, September 18th, 2021

EAEU, Iran sign interim free trade zone agreement

by May 17, 2018 Key Issues

The member-states of the Eurasian Economic Union and Iran signed an interim agreement on the formation of a free trade zone.

The parties agreed to reduce import customs duties in mutual trade for a period of 3 years. From Kazakhstan, the agreement was signed by First Deputy Prime Minister of the Republic of Kazakhstan Askar Mamin.

As a result of the negotiations, Iran provided tariff concessions on 246 goods, and the EAEU � on 175 products.

As for Kazakhstan, Iran will reduce and fix import customs duties on Kazakhstan’s main export goods. Including beef meat, lamb, butter, chickpeas, lentils, peas, barley, corn, vegetable oils, pasta, confectionery, steel rolled products, rails, batteries, fittings, pipes and others.

A. Mamin stressed that Iran is a promising market for increasing exports of Kazakhstani products. There is growth of mutual trade with Iran, which in the first three months of 2018 grew 70% compared to the same period in 2017, amounting to more than $ 170 million.

With regards to Iran, the customs duties on goods insensitive for the EAEU will be reduced: pistachios, dates, figs, raisins, shrimps, melons, oranges, lemons, limes, confectionery, some types of juices, paints and varnishes, dishes, detergents, carpets, plastic products. Regarding Iran’s priority export products (apples, tomatoes, cucumbers), the EAEC provides only seasonal concessions in the absence of production from November to March.

On average, as Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan noted, duties for Iran on industrial goods will decrease by 7%, and for the EAEU countries – by 3.3%. For agricultural goods, the average level of import duty rates for Iran will decrease by 19% and for the countries of the Union – by 5%.

It is very important that this agreement be legally consolidated in our countries and, of course, in the Islamic Republic of Iran (…). The free economic zone, first of all, is an additional link linking our economies. This not only reduces logistics costs, but also provides an opportunity to organize complementary production. That is, the logic is that manufacturers from Iran will import raw materials into this zone, get new products and without bureaucratic complicated procedures enter the market of the Eurasian Union, � Deputy Prime Minister of Armenia Tigran Avinyan commented in the course of the Astana Economic Forum.

In his opinion, this process will also stimulate the creation of an international transport transit corridor Indian Ocean – Persian Gulf – Black Sea. This will be an additional impetus for the development of cooperation with Vietnam, with which the agreement has already been signed, as well as with India and other countries with which negotiations are actively held.


Source: Government of the Republic of Kazakhstan