TEHRAN – Iran and the Czech Republic signed a double taxation avoidance agreement in a bid to give a boost to the bilateral trade.

The main purpose of the agreement is to avoid taxation of income in both the countries and to promote and foster economic trade and investment between the two countries.

Iranian Finance and Economic affairs Minister Ali Tayyebnia and Czech Republic’s Finance Minister Andrej Babis signed the agreement in the Czech capital city of Prague, the IRNA news agency reported on Friday.

The two ministers also discussed ways to expand cooperation in automotive and railway industries.

On the sidelines of the meeting, the Czech official said that having access to the Iranian market is of great importance.

Over recent years, the bilateral trade has plunged due to the economic sanctions of the West against Iran.

Tehran Chamber of Commerce Chairman Yahya Ale Es’haq said on April 13 that Iran and the Czech Republic can boost mutual cooperation in trade and economic projects.

Ale Es’haq said that the two countries’ mutual trade traditionally focused on industry, infrastructure, oil, energy, crystal products, and textile.

“Our mutual trade has lowered to $40 million, but technical factors and the markets are such that we can boost our relations,” he stated.