Iran has been granted observer status in the Eurasian Economic Union, aimed at enhancing trade relations, as a result of a free trade agreement that eliminates tariffs on 87% of goods. This development follows significant trade growth under a previous agreement, with further increases expected in the coming years.
Iran has officially received observer status in the Eurasian Economic Union (EEU) following a Supreme Eurasian Economic Council meeting held in St. Petersburg, Russia, on December 26. This status is intended to strengthen economic relations between Iran and the EEU, which aims to enhance trade collaboration among its member states. Under a newly established free trade agreement, tariffs will be eliminated for 87% of goods traded between Iran and the EEU, while sensitive items will remain on a designated negative list. The prior temporary trade agreement had already led to a significant increase in trade turnover between Iran and the EEU, rising from $2.7 billion in 2018 to $5.2 billion in 2023. Additionally, mutual trade continues to show positive growth, with a 12.8% year-on-year increase observed in the first ten months of 2024.
The Eurasian Economic Union, which includes Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan, promotes economic cooperation among its member states. Iran’s integration as an observer state marks a significant development in regional trade dynamics, especially following the signing of a free trade agreement designed to reduce tariffs and enhance economic interaction. The foundation for this collaboration was laid in 2017, culminating in a comprehensive agreement that underscores Iran’s strategic position within the EEU’s economic framework.
Iran’s admission as an observer in the EEU represents a crucial step in enhancing its economic relations with EEU member countries. The elimination of tariffs on a significant portion of traded goods, along with strong growth in trade turnover, highlights the potential for robust economic collaboration. As Iran seeks to further its international agreements, including a comprehensive cooperation document with Russia, it is poised to enhance its economic standing in the region.
Original Source: www.intellinews.com
