TEHRAN - Iran’s exports to the Eurasian Economic Union (EAEU) grew by 22 percent in the first quarter of this year, reaching $532 million, according to Elham Haji Karimi, head of the secretariat for the Iran-EAEU Free Trade Agreement.

She said the agreement, which came into force on May 14, has already delivered notable results, especially given that 87 percent of goods traded between the two sides are now exempt from tariffs, the portal of Iran’s Trade Promotion Organization (TPO) reported.

Karimi highlighted the strong interest from both Iranian and Eurasian traders, calling the deal one of Iran’s most impactful trade agreements to date. She expressed optimism about further deepening of economic ties, noting the support and commitment of officials from both sides, as well as from the Eurasian Economic Commission, the union’s executive body.

Exports saw the biggest jump to Russia and Armenia, with increases of 33 percent and 28 percent, respectively. During the same period, Iran imported over $380 million worth of goods from the EAEU, a three percent drop compared to last year. This brought the trade balance for the quarter to a positive $152 million in Iran’s favor, following the country’s first-ever trade surplus with the bloc last year.

Karimi noted that prior to the 2019 provisional agreement between Iran and the EAEU, Iranian exports to the region were limited mostly to agricultural products, totaling around $650 million in 2018. Since then, bilateral trade has steadily increased, with Iran’s exports surpassing $2 billion last year. The export basket has now expanded to include industrial goods, and she expects further growth in this category under the full free trade framework.

Imports from the EAEU primarily consist of essential commodities and items needed domestically, according to Karimi, who reiterated the strong response from businesses looking to capitalize on the agreement’s tariff exemptions.

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