Trade with Iran a key priority for EAEU

'Trade with Iran, a key priority for EAEU'

TEHRAN – The Eurasian Economic Union (EAEU) Minister of Trade Andrey Slepnev underscored the importance of the free trade agreement with Iran, citing the country's strategic position as a primary partner on the EAEU's southern borders and a key player in the International North-South Transport Corridor (INST).

In an interview with Izvestiia on Friday, Slepnev highlighted Iran's achievements in import substitution, technological development, and resilience against sanctions.

Addressing the status of the agreement, which was signed a year ago, Slepnev noted that the ratification process has been completed in four EAEU member states. “We aim to finalize the agreement at the upcoming EAEU leaders’ summit in Saint Petersburg at the end of December 2024, so it can take effect at the start of next year,” he said.

Slepnev explained that by the end of 2024, 75 percent of the EAEU's trade will be conducted with countries in the south of the region, marking a decisive shift in the bloc's trade priorities. “We have reoriented our trade focus from Western countries to the south,” he stated.

Previously, the European Union accounted for over 40 percent of the EAEU's trade, with the Global South comprising less than half. “Today, the share of European partners has fallen by about 2.5 times, while trade with the Global South continues to grow. By the end of 2024, we expect it to account for 75 percent of our trade turnover,” Slepnev added.

Earlier this month, Mohammad-Ali Dehghan Dehnavi, head of Iran’s Trade Promotion Organization (TPO), said Iran’s exports to Eurasian countries have grown by 2.5 times since the country signed a preferential trade agreement with the EAEU four years ago, highlighting the success of its trade policy.

Dehghan Dehnavi credited the exponential growth to reduced tariffs introduced through the agreements signed between the two sides.

Iran and EAEU also signed a free trade agreement on December 25, 2023, in St. Petersburg, Russia, aiming to eliminate tariff and non-tariff barriers and facilitate economic and trade interactions. Once fully implemented, 87 percent of tariff codes for commercial goods between Iran and EAEU member states will drop to zero.

Under President Masoud Pezeshkian’s administration, Iran has emphasized strengthening ties with Eurasian countries to enhance access to global markets. This strategy has translated into tangible growth, with the latest figures from Iran’s Customs Administration revealing a 16 percent rise in exports to EAEU nations in the first five months of the current Iranian calendar year (March 20–August 20). During this period, the export volume reached 2.2 million metric tons, reflecting a 35 percent year-on-year growth.

Iran also participated in the EAEU's annual meeting held on September 30 and October 1 in Yerevan, Armenia, with a high-level delegation comprising both public and private sector representatives. During the meeting, Iran’s First Vice President Mohammad Reza Aref reiterated the country’s commitment to expanding bilateral and multilateral economic relations with EAEU member states.

The success of the free trade agreement underscores Iran’s strategy to integrate more deeply into the regional economy and strengthen its presence in international markets.

EF/MA

source: tehrantimes.com