Why it matters:
The upcoming implementation of the free trade zone agreement between Iran and the Eurasian Economic Union (EAEU) represents a strategic move for Iran to enhance its trade relationships amid ongoing sanctions and economic challenges while also providing EAEU member states with access to Iranian markets.
The big picture:
The agreement follows the completion of necessary governmental procedures by Iran and the EAEU. The free trade zone is expected to facilitate increased trade flows, with projections indicating that mutual trade turnover could reach $12 billion, effectively doubling current trade volumes.
Key points:
- Iran has completed all internal governmental procedures required for the agreement, with formal notice sent to the EAEU in January 2025.
- This agreement enhances Iran's trade relationships and provides EAEU member states which include Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia with greater access to Iranian markets.
- The agreement provisions include sixty days for the document to become effective after the exchange of notes.
What he's saying:
Andrey Slepnev, Trade Minister of the Eurasian Economic Commission, stated, "The implementation of the new agreement will be an efficient tool for developing trade between the countries."
He emphasized that the agreement's provisions are designed to facilitate smoother trade relations which reflects the optimism surrounding the potential economic benefits of the agreement for both Iran and EAEU member states.
Go deeper:
The EAEU's inclusion of Iran aims to strengthen regional trade by reducing tariffs and barriers, facilitating smoother goods exchange. It also offers Iran an alternative market, countering Western economic pressures.
Hossein Amiri
