Iran president signs into law PTA between Iran, Indonesia

Iranian President Masoud Pezeshkian signed into law Preferential Trade Agreement (PTA) between Iran and Indonesia.

News ID: 5244

Date: 13 October 2024 - 11:10

TABNAK, Oct, 13: The move aims at boosting bilateral trade between the two countries through lowering or removing tariffs and lifting tariffs-related obstacles in bilateral trade between Tehran and Jakarta.

Earlier in August, lawmakers at the Iranian Parliament (Majlis) removed some inconsistencies in the preferential trade agreement (PTA) between Iran and Indonesia.

The Majlis removed those inconsistencies found earlier by Iran’s Guardian Council.

It was in mid-May that the Iranian Parliament approved the preferential trade agreement between Tehran and Jakarta.

Under the PTA, Iran lowers tariffs on imports of some products like textile, and processed food and pharmaceuticals from Indonesia, while Jakarta gives easier and further access to its markets for Iranian products, foreign media have reported from Jakarta a year ago.

The PTA is signed between the world countries in line with bringing about integration to the world economy.

Indonesia is one of the world's consumption markets, and this country's market is the main destination of many countries' export goods. Considering Indonesia’s membership in the World Trade Organization (WTO) and low tariffs for imports to this country, Iran can also take advantage of the economic status of Indonesia and expand its trade with this country.

In recent years, Iran has started to sign preferential trade agreements with other countries to expand its economic relations through the reduction of tariff rates. A clear example of this policy is the trade agreement with the Eurasian Economic Union (EAEU) and Pakistan, based on them zero tariffs are to be applied on at least 100 items.

The data of the last decade of Iran's trade with Indonesia show that the peak of Iran's trade relations with this country was in the Iranian calendar year 1400 (ended on March 20, 2022), which can be a turning point in the history of trade between the two countries.

Iran's 10-year exports to Indonesia show that in 1400, the highest value of exports to Indonesia occurred in the last ten years, which was $1.081 billion.

Iran’s export to Indonesia in the last ten years shows an upward trend, as the exports to this country have increased from 60 million dollars in 1392 to more than one billion dollars in 1400. This is a sign of the potential of relations between the two countries in the economic area.