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Iran’s parliament has approved the general provisions for the freetrade agreement (FTA) between Iran and the Eurasian Economic Union (EAEU), Mehr News reports. The parliament assessed its Economic Commission’s report on the bill for the FTA and ratified the bill in principle.
Why this is important: Iran signed the FTA with the Eurasian Economic Union (EAEU) last year to see the removal of all tariffs on up to 87% of goods traded between Iran and EAEU member states. The agreement looks to boost trade between Iran and the EAEU by between USD 18 bn to USD 20 bn over the next five years.
Big potential for trade: The volume of trade between Iran and the EAEU — which comprises Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia — grew 11% in 9M 2024. Iran reported a 16% increase in exports to the EAEU nations in the first five months of the Iranian calendar (20 March to 20 August) and the export volume totalled 2.2 mn metric tons, up 35% y-o-y, Tehran Times reports.
It’s been in the works: Iran and the EAEU inked a preferential trade agreement (PTA) back in 2018, leading the pair to kick off negotiations to upgrade the agreement to an FTA. The agreement follows three and a half years of talks which saw some 30 sessions of negotiations.
