Iran-EAEU trade reaches $1.4b in 8 months

January 1, 2021 - 11:59

TEHRAN- The value of non-oil trade between Iran and the members of the Eurasian Economic Union (EAEU) reached $1.4 billion in the first eight months of the current Iranian calendar year (March 19-November 20, 2020), data released by Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) showed.

Based on the mentioned data, Iran exported 1.8 million tons of commodities worth $639 million to the EAEU members in the period under review, registering a 20 percent fall in terms of weight and a six-percent decline in terms of value.

Trade with Eurasia accounted for 2.8 percent of the country’s total non-oil trade in the mentioned period, IRNA reported.

As reported, the country’s trade with its Eurasian partners declined 11 percent compared to the previous year’s same eight-month period.

During this time span, Iran's exports to Russia and Belarus increased significantly in terms of weight and value, while exports to three other countries, namely Armenia, Kyrgyzstan, and Kazakhstan, decreased.

Eurasian destinations accounted for only 2.4 percent of Iran’s total exports in the first eight months of the current year, according to the said data.

Among Eurasian trade partners, Russia was Iran's top export destination with $285 million, followed by Armenia with $233 million worth of imports from the Islamic Republic, while most of Iran's imports also came from Russia ($727 million).

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.

EF/MA

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