TEHRAN- According to statistics, in 2020, the total value of Iran's exports to the Eurasian Economic Union (EAEU) member states was $1.041 billion, 56 percent of which was done using preferential tariffs.

As reported by the news portal of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA), according to statistics, the value of Iran's exports of GSP-covered goods to the mentioned countries was $191 million in 2016 and Iran's total exports to those states in the same year was $535 million. These figures in 2020 were $584 million and $1.041 billion, respectively.

GSP, is a preferential tariff system which provides tariff reduction on various products.

After the conclusion of a free trade agreement between Iran and the Eurasian Economic Union, with the elimination of customs tariffs over time for at least 80 percent of goods, there will be no need to enjoy GSP privileges, which is also mentioned in the GSP laws of that union.

However, it is possible that for the first few years after the implementation of the free trade agreement, which has not yet been fully implemented, the use of GSP discounts in trade relations with EAEU member states will continue. This was also the case with the union's free trade agreement with Vietnam.

Iran and Eurasian Economic Union reached a free trade agreement in October 2018 based on which about 862 commodity items were subjected to preferential tariffs.

The interim agreement enabling the formation of a free trade area between Iran and the EAEU was signed on May 17, 2018, and officially came into force on October 27, 2019.

Iran is a very important market in the region and the development of ties with this country is of high significance for the EAEU members (Russia, Belarus, Armenia, Kazakhstan, and Kyrgyzstan).

The free trade agreement between Iran and this union has laid the ground for the expansion of trade ties between the two sides.

The agreement with the bloc has increased Iran’s exports to the EAEU member states significantly, which is a turning point for the Islamic Republic's plans for boosting non-oil exports during the U.S. sanctions.

As recently reported, the value of non-oil trade between Iran and the members of the Eurasian Economic Union (EAEU) exceeded $1.6 billion in the first four months of the current Iranian calendar year (March 21 – July 22) to register 93 percent growth compared to the previous year’s same period.

According to Hossein Kakhaki, director-general of the International Cooperation Department of the Islamic Republic of Iran Customs Administration (IRICA), Iran exported over $385 million worth of commodities to the EAEU members in the period under review, 46 percent more than the figure for the previous year’s same period.

During the said four months, the Russian Federation with $188.926 million, Armenia with $83.043 million, Kazakhstan with $53.395 million, Kyrgyzstan with $24.294 million, and Belarus with $6.578 million of imports were the top destinations for the Iranian exports to the EAEU, according to Kakhaki.

Iran’s imports from the block hit $1.252 billion in the mentioned period, the official said.

Russian Federation with $1.062 million, Kazakhstan with $178.722 million, Belarus with $8.29 million, Armenia with $2.239 million and Kyrgyzstan with $216,000 were the top five sources of Iranian imports.

MA/MA