TEHRAN- The value of Iran’s exports to the Eurasian Economic Union (EAEU)’s member states rose 72 percent during the first ten months of the current Iranian calendar year (March 21-December 21, 2019) compared to the same period of time in the past year, the spokesman of Islamic Republic of Iran Customs Administration (IRICA) announced.

Mentioning the significant growth of trade between Iran and EAEU since implementation of the free trade agreement (FTA) between the two sides on October 27, 2019, Rouhollah Latifi also announced that the weight of Iran’s export to those countries increased 114 percent during the mentioned ten-month period, IRNA reported.

According to the officials, Iran exported 2.683 million tons of commodities worth over $861 million to the EAEU member states during the first ten months of the present year.

Iran’s import from the EAEU has also risen to 2.563 million tons valued at $1.1 billion in the mentioned time span, indicating five percent fall in worth and 41 percent rise in weight, year on year.

After several years of negotiations, Iran and Eurasian Economic Union finally reached a free trade agreement in 2018 based on which about 862 commodity items are subject to preferential tariffs.

The interim agreement enabling 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 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.

Iran signing the agreement with the bloc has increased the country’s exports to the EAEU member states significantly, which is a turning point for the Islamic Republic to boost its export under the sanctions time.

Iran-EAEU free trade agreement is also an opportunity for Iran to reach its goal of boosting exports to its neighbors, something that the country is seriously pursuing.

While the FTA has facilitated Iran’s trade with EAEU member states, it should be considered that it is a limited agreement valid for three years, so traders should take the most advantage of the current condition.

Although, the interim agreement is planned to come to a fully-functional agreement between the EAEU and Iran, as the minister for trade of the Eurasian Economic Commission has said that the temporary agreement between Iran and EAEU can be turned into a permanent one after three years.

MA/MA