Tuesday, February 19 2019 18:01

ArmInfo. The most significant  event in the economic agenda of Armenia and the Islamic Republic of  Iran in 2019 will be the entry into force of the Interim Agreement  leading to the formation of a free trade zone between the Eurasian  Economic Union (EAEU) and Iran.  Minister of Economic Development and  Investments Tigran Khachatryan stated this on February 19 in an  interview with journalists.

According to the Minister, already three countries of the Union -  Belarus, Kyrgyzstan and Russia - have ratified the Interim Agreement.  The document will soon receive the approval of the Armenian  parliament and ratified, the next is the Iranian parliament.

According to Khachatryan, one of the benefits that entrepreneurs of  the countries of the Union and Iran will receive after the agreement  enters into force will be savings on the payment of import customs  duties. The second advantage, as the head of the department  indicated, is a transparent and predictable environment of mutual  trade. It was also agreed not to apply unreasonable non-tariff  measures restricting trade in relation to the goods listed in the  agreement.

To recall, the countries of the Eurasian Economic Union (EAEU) and  Iran signed a temporary agreement on the creation of a free trade  zone during the Astana Economic Forum on May 17, 2018. It is designed  for three years and provides for the formation of a free trade zone  (FTA) on a limited range of goods between the EAEU and Iran. Under  the terms of the agreement, not later than one year after its entry  into force, the parties undertake to begin negotiations on the  conclusion of a full-fledged free trade agreement. The implementation  of the agreement will contribute to an increase in trade volumes and  the development of economic ties between its participants, an  increase in the supply of Russian industrial and agricultural  products to Iran.

The document forms the basic rules of trade between the EAEU and  Iran, as close as possible to the WTO rules, and also covers issues  of the most favored nation and national treatment, the application of  protective measures and customs administration. The Iranian side will  be provided with tariff preferences for an expanded list of  foodstuffs, primarily vegetables, fruits, dried fruits, as well as  building materials, dishes, carpets, and some non-ferrous metal  products. The Eurasian Economic Union will give customs preferences  for exporting meat, confectionery and medicines to Iran, and plans to  buy vegetables, fruits, building materials there.

According to the 2018 data, the trade turnover between Iran and the  EEU countries - Russia, Kazakhstan, Belarus, Kyrgyzstan, Armenia - is  estimated at $ 2.7 billion per year.