Free trade between Eurasian Economic Union & Iran may launch next year

By Al Mayadeen English
Source: Al Mayadeen English + Agencies
16 Oct 2022 19:17

The head of the Trade Promotion Organization of Iran (TPOI) said in an interview that the Islamic Republic may implement a free trade agreement with the Eurasian Economic Union as of next year, which will open a $700 billion dollar market for the country.

Flags of Iran and the Eurasian Economic Union.

Alireza Peyman-Pak, the head of the Trade Promotion Organization of Iran (TPOI), said in an interview with Mehr News Agency that trade turnover between Iran and the Eurasian Economic Union reached $5 billion in 2021 from $2.3 billion in 2015, an increase of around 55%.

The head of the TPOI added that 9 meetings took place in the past year to discuss Eurasia and that an implementation of a free trade agreement is expected beginning of the next year in Iran-1402 (on March 21st of 2023). This, according to Peyaman-Pak, will provide Iran's manufacturing and production industry with a $700 billion market, which will enable further expansion.

"According to what has been announced, after the governments have reviewed and approved the details of the negotiations, the final approval of free trade with Eurasia will be determined by the end of the month of Azar ( 21st of December), and if this procedure continues, free trade with Eurasia will start next year," he told the news agency.

The Islamic Republic of Iran has been in the past few years moving forward toward expanding cooperation and ties, with regional and non-regional countries in the fields of trade, politics, and security among other areas as well.

Last June, Iran announced that it had submitted its application for membership in the BRICS, which includes a group of five major emerging economies: Brazil, Russia, India, China, and South Africa, which accounts for 30% of global GDP and 40% of the world's population.

During the Uzbekistan-held 22nd Shanghai Cooperation Organization summit held last September, the organization announced Iran's full accession to the membership of the SCO after Iran had previously signed a memorandum of arrangements and commitments to the organization.

The Shanghai Cooperation Organization is an economic, political, and security alliance comprising China, India, Russia, Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Pakistan. SCO Observer countries include Afghanistan, Belarus, Iran, and Mongolia, with Azerbaijan, Armenia, Cambodia, Nepal, Turkey, and Sri Lanka holding a dialogue partner status.