Baku, Azerbaijan, Feb. 4
By Fatih Karimov - Trend:
Iran and Turkey will set up a joint committee to facilitate customs trade, Iran's Mehr news agency reported on Feb. 4.
In a meeting between Iranian Finance and Economic Affairs Minister Ali Tayebnia and Turkish Customs and Trade Minister Nurettin Canikli, the two sides agreed to set up a committee to discuss ways to boost bilateral trade.
The Turkish minister said signing the preferential trade agreement could lead to a jump in the two-way trade.
Preferential trade agreement is a pact that reduces tariffs for certain products to the countries who sign it. While the tariffs are not necessarily eliminated, they are lower than countries not party to the agreement. It is a form of economic integration.
In January 2014, Iran and Turkey signed the agreement with the goal of boosting bilateral trade.
The preferential trade agreement took effect on January 1, 2015.
According to the agreement, 125 items of Iranian goods and 140 items of Turkish goods will be traded based on preferential.