Iran and the EEU have listed 862 types of commodities in their three-year provisional trade agreement. As per the deal, Iran will enjoy easier export terms and lower customs duties on 502 items and the same goes for 360 items from the EEU member states.
“Out of the total 862 items in the agreement, 639 are industrial commodities and the remaining 223 items are agricultural goods,” the deputy head of Iran Chamber of Commerce, Industries, Mines and Agricultures, Mohammad Reza Karbasi, was quoted by ICCIMA’s news portal as saying.
The official noted that the Iranian government has over the past couple of years banned the import and export of certain goods, some of which are among items listed in the Iran-EEU PTA, according to Financial Tribune.
Karbasi was referring to trade restrictions placed by the government in response to economic sanctions to economize on foreign currencies.
“The restrictions or bans set on the trading of these items will not affect Iran-EEU trade and the import and export of these commodities will be permitted under the PTA,” he said.
According to the official, eight taskforces in the fields of transit, agriculture, consular and visa affairs, standards, technical issues, health services and pharmaceuticals, banking and trade will work separately and coordinate with each other to ease processes and solve any problems that might arise in the way of implementing the agreement.
Taskforces include all bodies involved in the Iran-EEU agreement, namely ICCIMA, Trade Promotion Organization of Iran, the Islamic Republic of Iran Customs Administration and the ministries of foreign affairs; energy; agriculture; roads and urban development; and industries, mining and trade.
Karbasi also pointed out the possible hiccups the domestic market might experience after the agreement is implemented, but added that these problems will be temporary.
“To expand our trade ties, we are forced to carry out this surgery on foreign trade. This is a win-win agreement. While it doesn’t mean it’s always a win for Iran, its benefits outweigh the risks,” he said.
Hervic Yarijanian, the head of Iran-Armenia Chamber of Commerce, told Fars News Agency that though the PTA will come into effect on Oct. 27, the mechanism by which Iran’s banking system is going to work with EEU has not yet been specified.
Iran and the Eurasian Economic Union are looking to substantially increase trade. The two sides signed the aforementioned three-year provisional agreement in Astana on May 17, 2018, for the bloc to welcome Iran into EEU.
The arrangement is the first step in implementing free trade between Iran and the five members of the union. It lowers or abolishes customs duties, setting off a three-year process for a permanent trade agreement.