Iran’s exports to Eurasia rising after preferential trade pact

January 4, 2020 - 14:53

TEHRAN – Head of the Export Promotion Committee of Iran Chamber of Commerce, Industries, Mines and agriculture (ICCIMA) says the exports of some highly-demanded goods to Eurasia has been facilitated after implementation of a preferential trade deal with Iran, and the volume of trade is rising for these items.

“However, the trade for other commodity groups is still low and the exchange processes are slow,” Jamshid Nafar told IRNA.

He further noted that a preferential trade deal is like a bargain, the two sides should negotiate in order to come up with a mutual agreement about the items they want to export or import.

“It is normal for some items, which are more demanded, the trade processes go through faster and more easily,” Nafar added.

Mentioning the free trade deal between Iran and the Eurasian Economic Union (EAEU), which came into force in October 27, the official said: “of course this pact is still new and there are some issues at the beginning of implementing any new program, but the industry and economy ministries should support the traders and the program to go through smoothly.”

There is a center in the Trade Promotion Organization which is established for monitoring Eurasia trade problems. Exporters need to be in direct contact with this center and report their issues, so that the relevant government agencies or the private sector representatives could resolve them, he said.

Last month, head of Islamic Republic of Iran Customs Administration (IRICA) said the value of Iran’s preferential trade with Eurasian countries reached $194.2 million since the trade agreement 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 said.

After several years of negotiations, Iran and EAEU reached a free trade agreement in early 2019 and the agreement officially came into force in late October.

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.


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