Iranian Cabinet Approves Free Trade Agreement with EAEU

19 June

The Iranian government has approved the signing of a law to establish a free trade zone between the member countries of the Eurasian Economic Union (EAEU) and the Islamic Republic of Iran. This was announced by Ali Bahadori Jahromi, the official representative of the Iranian cabinet.

 

"The cabinet has approved [the signing of] the draft agreement on free trade between EAEU countries and Iran," Jahromi said at a press conference following a government meeting, according to the Fars news agency. One of the goals of the agreement, as stated by the official, is "free economic and trade interaction."

 

Jahromi clarified that the document has been "presented to the parliament" - the Iranian Majlis. The agreement must be adopted by the parliament and then approved by the Guardian Council, a supra-parliamentary body that reviews laws passed by deputies for constitutional compliance.

 

On June 12, Russian President Vladimir Putin signed a federal law "On the Ratification of the Free Trade Agreement between the Eurasian Economic Union and its Member States, on one side, and the Islamic Republic of Iran, on the other side."

 

On June 5, the Federation Council approved the ratification of the treaty. The State Duma ratified the agreement on May 28. The document was signed in St. Petersburg at a meeting of the Supreme Eurasian Economic Council on December 25, 2023.

 

The Russian Ministry of Economic Development explained that Tehran will grant tariff preferences on more than 95% of current Russian exports to Iran and will establish a transparent trade regime. The Eurasian Economic Commission noted that the creation of a free trade zone with Iran would allow the trade volume between Iran and the EAEU countries to increase to $18-20 billion annually within five to seven years.

 

 

GSV "Russia - Islamic World"

Photo: mostafa meraji/Unsplash

Based on TASS materials