Iran Press/ Iran news: The uptick in trade comes as Iran anticipates being granted observer status in the EAEU during the upcoming leaders' summit in January 2025.
The EAEU reported that Iranian exports to member states—Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia—rose by 9% from January to September 2024. Notable growth was seen in Iran's exports of vegetables, fruits, and nuts, which collectively grew by 11% compared to the same period in 2023.
Conversely, the EAEU's primary exports to Iran during the same period were agricultural products, which increased by more than 10% year-on-year.
Progress Toward Observer Status
On December 3, Russian Deputy Minister of Economic Development Dmitry Volvach announced that Iran's request for observer membership had been approved during a meeting of the union's deputy prime ministers. The proposal now awaits final approval at the EAEU Supreme Council meeting later this month. Volvach emphasized Iran's significance as a key partner, predicting an upgrade to observer status at the summit.
Iranian President Dr. Masoud Pezeshkian also highlighted the development during a recent televised address, stating:"Securing observer status in the EAEU will pave the way for trade with lower or zero tariffs, providing a valuable market for Iranian producers and traders."
Free Trade Agreement Advancements
Iran and the EAEU signed a free trade agreement (FTA) in 2023, which requires ratification by the parliaments of all participating countries before implementation. So far, Russia, Belarus, and Kyrgyzstan have completed ratification, while the process is ongoing in Iran, Armenia, and Kazakhstan. The agreement is expected to take effect two months after the final ratification.
Once operational, the FTA will eliminate tariffs on approximately 87% of Iranian exports to the EAEU, significantly boosting trade efficiency.
Future Potential
EAEU Trade Minister Andrey Slepnev expressed optimism about the trade relationship, stating:"With existing capacities, the trade turnover between Iran and the EAEU could reach $12 billion in the near future."
Founded in 2014, the EAEU is an intergovernmental economic union comprising five member states, with Uzbekistan, Moldova, and Cuba holding observer status. Iran's growing collaboration with the union signals strengthened regional ties and expanded economic opportunities.
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Iran-EAEU Trade Volume Surges by 2.5 Times, Marking Major Economic Growth
