Leaders of the 5 EAEU member states signed an settlement recognizing Iran’s membership as an EAEU observer at a ceremony in St. Petersburg, which was additionally attended by Iranian Minister of Industry, Mines and Trade Mohammad Atabak.
Iran changing into an “observer” member of the Eurasian Economic Union (EAEU), permitting 80% of commerce between Iran and the member international locations to be carried out tariff-free, is the start of financial growth among the many member international locations. However, there are obstacles that, if not eliminated, will scale back Iran’s share in world commerce.
Although Iran just isn’t but formally a member of the Eurasian Economic Union, many efforts have been made in recent times to grow to be a member, and after a few years, Iran has lastly succeeded in changing into an observer member of the Eurasian Economic Union. If Iran turns into a full member of the Eurasian Economic Union, new horizons will open for Iran to begin new financial relations with the member states of the Union.
Iran’s membership as an observer within the Eurasian Union permits it to take part in its conferences and choices, in addition to entry its knowledge. Additionally, tariffs on many objects have not too long ago been eradicated, making commerce between the 2 international locations simpler than earlier than.
As talked about above, there are various boundaries to commerce between Iran and its allies, together with worldwide sanctions imposed on the nation, variations in manufacturing requirements, well being and security requirements, and political concerns. Nevertheless, absent these obstacles, Tehran might absolutely profit from the union’s financial alternatives.
However, the beforehand authorized Free Trade Agreement (FTA) between Iran and the Eurasian Economic Union (EAEU) offers ample alternative for Iran to export high-quality merchandise to the member states of the Union.
The Eurasian Economic Union is without doubt one of the most necessary financial associations. The relationship between Iran and the Alliance started in 2015 with the announcement of the conclusion of a Free Trade Agreement (FTA) by the Eurasian Economic Commission. The newest transfer on this regard is the acceptance of Iran’s observer standing and members’ settlement to a free commerce settlement with Iran that provides a number of alternatives for Iran.
In October 2011, Russia, Kazakhstan, and Belarus agreed to ascertain the Eurasian Economic Union. Three years later, in May 20014, the three international locations talked about above signed the Treaty Establishing the Eurasian Economic Union, which is scheduled to come back into drive on January 1, 2015.
Regarding Iran’s exports to Eurasian Economic Union (EAEU) member international locations, in accordance with statistics from the Islamic Republic of Iran Customs Authority (IRICA), Iran exported 3.86 million tons (valued at $1.5 billion) of non-oil merchandise to member international locations. . The proportion of member states through the first 9 months of the present Iranian calendar yr (from March 21 to December 22, 2024) was 21% and 22%. Increase in worth and weight respectively in comparison with the identical interval final yr.
It is believed that bilateral commerce will likely be considerably boosted if the commerce boundaries that exist between Iran and the EAEU member states are eliminated.
Iran and Iranian member states have excessive potential and skill to develop bilateral commerce. Currently, Iran exports agricultural merchandise akin to nuts, recent vegatables and fruits, preservatives, fruit juices, tomato paste, dairy merchandise and meals merchandise akin to ironware, pipes and shapes, and chemical industries akin to manure, chemical fertilizers, and detergents. are.
Additionally, Iran exports petrochemical merchandise akin to polyethylene and propylene to alliance members.
According to statistics, Russia is the biggest export goal marketplace for Iranian merchandise, importing 1.96 million tons of products, Armenia importing 1.48 million tons of products, Kazakhstan importing 360,000 tons of products, Kyrgyzstan It imports 44,000 tons of products, and Belarus does the identical. 14,000 tons of products have been different patrons of Iranian merchandise.
Let’s check out the advantages of Iran becoming a member of the EAEU
Given Iran’s nice energy within the Eurasian Economic Union and Russia’s strategic accomplice within the area, the nation will contribute to selling commerce between the 2 international locations, guiding it from vitality and safety to broader financial ranges.
Moreover, Iran’s presence within the Eurasian Economic Union can be a serious blow to US sanctions in opposition to the Islamic Republic of Iran.
Looking on the future plans of the Eurasian Economic Union, it may be seen that the Union is shifting within the route of changing into unbiased from the US greenback (de-dollarization) and decreasing its dependence on the greenback. Iran, which has all the time been underneath US financial sanctions, will likely be given extra alternatives and freedom of motion.
Iran is a outstanding nation within the International North-South Transport Corridor (INSTC), with Iran, Russia and India being the principle founders of this hall, and the hyperlink between the South Asian area and the EAEU in Central Asia, the Caucasus, Russia, Turkey and Iran. Participation within the FTA might strengthen Iran’s outstanding position within the worldwide North-South transport hall and contribute to Iran’s financial development.
The EAEU is a regional financial group that features the international locations of Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan. The affiliation was established with the intention of selling commerce, funding and financial cooperation amongst its members. In 2018, Iran signed a preferential commerce settlement with Eurasia, getting into the sphere of financial cooperation with member states, as a primary step to develop commerce relations with this alliance.
Trade between Iran and the international locations of the Eurasian Economic Union has elevated considerably in recent times. The settlement, signed in 2018, paved the best way for tariff reductions and boosted commerce between Iran and Eurasian international locations, however the course of additionally presents challenges that require cautious consideration and planning.
The Iran-Eurasian Preferential Trade Agreement (PTA), which was signed on May 17, 2018 and entered into drive on October 27, 2019, is a vital step in increasing commerce and financial relations between Iran and the members of this alliance. It is. Despite the achievements, being attentive to the challenges and implementing acceptable options will assist to optimally exploit these alternatives and pave the best way for the nation’s sustainable financial growth.
Reporting and enhancing by Morteza Ahmadi