Wednesday, March 27 2019 10:50

ArmInfo. On March 27, the RA National Assembly adopted the law "On ratification of the interim agreement between the Eurasian Economic Union and the Islamic  Republic of Iran on a free trade zone".Presenting the draft decision,  RA Deputy Minister of Economic Development and Investments Albert  Babayan stressed that the agreement signed on May 17, 2018 in the  framework of the Astana Economic Forum.

The interim agreement will be valid for three years, during which the parties must develop a more comprehensive agreement on a free trade zone. In order to ensure the  most favorable regime, the document provides for horizontal  obligations between the parties, national regimes, exports and  imports of goods, as well as the provision of WTO standards when  applying protective measures in general trade. 

One of the most important provisions of the document is to ensure the  transparency of customs and tax procedures, the elimination of  discriminatory measures.Recall that the interim agreement leading to  the formation of a free trade zone between the Eurasian Economic  Union (EAEU) and the Islamic Republic of Iran was signed on May 17,  2018 as part of the Astana Economic Forum. The agreement was signed  by Tigran Sargsyan, Chairman of the Board of the Eurasian Economic  Commission (EEC), Armenian Deputy Prime Minister Tigran Avinyan,  First Deputy Prime Minister of Belarus Vasily Matyushevsky, First  Deputy Prime Minister of Kazakhstan Askar Mamin, Vice Prime Minister  of Kyrgyzstan Zamirbek Askarov, Deputy Prime Minister of Russia  Dmitry Kozak; and Minister of Industry, Mines and Trade of the  Islamic Republic of Iran Mohammad Shariatmadari. After the signing  ceremony, Armenian Deputy Prime Minister Tigran Avinyan pointed to  the historic good-neighborly relations with Iran. "Armenia is the  only EAEU country that has a land border with Iran, and we will try  to use it for the benefit of the market of Armenia, the EAEU and  Iran," he said. 

Tigran Avinyan said that Meghri free economic zone (FEZ) will be  involved in cooperation with Iran. It provides the opportunity to  organize joint production on its site. Manufacturers from Iran can  import raw materials into the FEZ and get finished products without  bureaucratic procedures for supplying to the EAEU market. As an  example of cooperation with Iran, the representative of Armenia cited  the already existing experience - Armenia manufactures food products  under Iranian "halal" standards.It should be noted that the list for  the EAEU subject to preferential taxation will include meat and oil  and fat products, certain types of confectionery and chocolate, as  well as metals, cosmetics, certain types of electronic and mechanical  equipment. 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. 

For industrial goods, the average rate of import duties of Iran will  decrease from 22.4% to 15.4%, that is, by 7 pp, of the Union, from 8%  to 4.7%, that is, by 3.3 pp . For agricultural products, Iran will  reduce duties from an average of 32.2% to 13.2%, that is, by 19 pp,  the Union from 9.6% to 4.6%, that is, by 5 pp.  The parties agreed to  reduce import customs duties in mutual trade for a period of 3 years,  and Iran also provided tariff concessions for 246 goods, for the EAEU  - for 175 goods.For Iran, customs duties on goods insensitive to the  EAEU will be reduced: pistachios, dates, figs, raisins, shrimps,  melons and gourds, oranges, lemons, limes, pastries, some types of  juices, building paints and varnishes, dishes, detergents, carpets,  plastic products. For goods of Iran's main export interest (apples,  tomatoes, cucumbers), the EAEU provides only seasonal concessions  during the period of lack of production - from November to March. The  list of goods includes diesel fuel, and the Iranian side received a  preferential rate for customs duties of 2.5%, instead of 5%.According  to the Armenian parliamentarians, the ratification of the agreement  will provide an opportunity not only to increase the volume of  Armenia's trade with Iran, but also to become a bridge connecting  Iran with the EEU countries. According to RA National Assembly MP  Mikayel Melkumian, last year bilateral trade amounted to $ 363  million, of which $ 94 million was export of Armenian goods. He  called on the Armenian authorities to more actively implement  projects with this Islamic republic.