News ID: 260070
Published: 0324 GMT October 11, 2019

EEU, Iran to launch interim free trade zone

EEU, Iran to launch interim free trade zone

The interim free trade agreement between the Eurasian Economic Union (EEU) and Iran will come into force on 27 October, Veronika Nikishina, a member of the ministerial board of the Eurasian Economic Commission (EEC), said in a press conference in Moscow, BelTA reported.

According to Nikishina, reduced export duties and zero customs barriers will apply to a narrow specific group of commodities.

Food, textiles, building materials, and also Iranian vegetables and fruits will be subject to preferential trade.

The EEC minister stressed that the free-trade regime will apply exclusively to civilian goods, and that the Iranian market is of great interest to business of the EEU countries.

Currently, the EEU has free trade agreement with Vietnam only.

An agreement to establish preferential trade relations with Singapore was signed on 1 October. Similar agreement with Serbia is scheduled to be signed on 25 October.

In June, the Iranian Parliament ratified an agreement that allows the administration to join a free trade zone with EEU countries.

The agreement, signed in Kazakhstan in May 2018, sets the main rules of trade between the EEU, Iran and those of the World Trade Organization (WTO) of which Iran is not a member.

Russia’s State Duma and the Federation Council had ratified the agreement to establish Iran-EEU free-trade zone in November 2018.

The Eurasian Economic Union includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. 

Signing of the partial agreement on free trade between Iran and the EEU shows that the Iranian economy has entered a new level of regional economic cooperation, said Davood Mirzakhani, the representative of the Iranian energy minister in Iran-Russia Joint Cooperation Commission, said in March.

“The deal has paved the way for the connection of Iran’s economy with the region,” he said.

Mirzakhani noted that EEU’s annual gross domestic product (GDP) surpasses $4 trillion.

The official, who is former Iranian economic attaché in Moscow, said that Russia imported more than $250 billion worth of industrial and agricultural products as well as medicine and medical equipment over the past year.

“It could rise to $300 billion in the coming years,” he said.

   
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