Non-Energy Iran – Eurasian Economic Union Trade Up 93% After FTA Renewal Signed
The value of non-oil trade between Iran and the members of the Eurasian Economic Union (EAEU) exceeded US$1.6 billion in the first four months of the current Iranian calendar year (March 21 – July 22) to register 93% Year on Year growth compared to 2020.
Hossein Kakhaki, director-general of the International Cooperation Department of the Islamic Republic of Iran Customs Administration (IRICA), said that Iran exported over US$385 million worth of commodities to the EAEU members in the same period, an increase of 46%.
The total EAEU non-energy markets for Iran during this period were as follows:
|EAEU Member||Iranian Export Value (US$, millions)|
Iran’s imports from the EAEU reached US$1.252 billion in the same period.
|EAEU Member||Iranian Import Value (US$, millions)|
Iran and Eurasian Economic Union reached a free trade agreement in October 2018 based on which about 862 commodity items were subjected to preferential tariffs and came into effect on October 27, 2019. It was further revised and expanded earlier this year.
Iran is an important consumer market in the region and the development of ties with this country is of high significance for the EAEU members. Iran has a population of 83 million and a GDP (PPP) of a Trillion dollars. Per capita income is US$11,960, about 15% higher than China’s. Given the US and EU sanctions on Iran, its market economy has now turned to Asian, rather than European trade and investment.