Iran expects boom in trade after gaining EAEU’s observer status

Iran expects a major boom in trade ties with members of the Eurasian Economic Union (EAEU) after the country gained observer status in the bloc and just months before the two sides enter into a free trade agreement.

News ID: 5658

Date: 30 December 2024 - 10:21

TABNAK, Dec 30: Iran’s trade minister Mohammad Atabak said on Sunday that observer membership in the EAEU will enable Tehran to increase its presence in the bloc’s meetings and exchange more trade and economic information with its members.

Atabak made the remarks after returning from an EAEU Supreme Council meeting in Saint Petersburg, Russia, where he signed the agreement for Iran to become an observer member in the bloc on December 26.

During the meeting, EAEU members also gave their final endorsement to a free trade agreement signed between Iran and the bloc last year. The agreement, which has been ratified by parliaments of both Iran and five EAEU members, will officially come into effect in the next two months after Iran’s Guardian Council, which vets legislation passed by parliament, approves the deal.

Atabak said that the free trade deal with the EAEU will eliminate tariffs on nearly 87 percent of Iranian exports to members of the bloc, namely Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia.

He expected that trade between Iran and the EAEU would increase several times with the implementation of the free trade deal.

“The Eurasian region is a very good market for Iranian goods. Iranian technical and engineering companies can also expand their activities in these countries,” he said.

The minister said that Iran is planning to hold a major trade exhibition in Tehran in the coming months to showcase its economic and trade potential to EAEU countries.