Industry Ministry, ICCIMA to set up taskforce on free trade with Eurasia

December 31, 2019 - 16:45

TEHRAN- Iranian Industry, Mining and Trade Ministry and Iran Chamber of Commerce, Industries, Mines and Agriculture are planning to form a taskforce on Iran’s free trade with the Eurasian Economic Union (EAEU) countries, the head of Iran’s Trade Promotion Organization (TPO) announced.

Hamid Zadboum made the announcement during a ceremony on honoring the exemplary exporters of Tehran Province held by Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) on Tuesday, ILNA reported.

The official said, “To have free trade with the EAEU countries we should put at least 85-90 percent of the commodities under the free trade condition. Some studies have been already started in this regard and as ICCIMA is strong in such studies we will set up a taskforce jointly with the chamber to specify such goods”.

After several years of negotiations, Iran and EAEU reached a free trade agreement earlier this year and the agreement officially came into force on October 27.

Based on this agreement, about 840 commodity items are subject to preferential tariffs, which means tariffs on some goods are reduced and for some commodities, tariffs are levied.

Iran is a very important market in the region and development of ties with this country is of high significance for the EAEU members.

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

As announced by the head of Islamic Republic of Iran Customs Administration (IRICA), the value of Iran’s preferential trade with Eurasian countries reached $194.2 million since the trade agreement with the Eurasian Economic Union was implemented on October 27 up to the end of November.

In the mentioned period Iran exported $28.2 million worth of commodities to the EAEU nations while importing $166 million of commodities through preferential trade, Mehdi Mirashrafi informed.

According to the official, the value of Iran’s total (preferential and non-preferential) exports to Eurasia stood at $137.9 million in the mentioned period, while the total imports reached $193 million.

“In the current situation [the U.S. sanctions], the Eurasian countries have a very good potential [for trade] that we need to utilize this capacity to boost our exports and also to import our needed commodities,” Mirashrafi said.

He also noted that the two sides of the agreement are trying to avoid using dollar in their economic exchanges and use their national currencies or other common currencies like the euro instead.


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