Kazakhstan, other EAEU states, Iran establish temporary free trade zone

Business Materials 11 May 2019 09:58 (UTC +04:00)

Baku, Azerbaijan, May 11

By Fakhri Vakilov – Trend:

President of Kazakhstan Kasym-Zhomart Tokayev signed the law on ratification of the Interim Agreement on the formation of a free trade zone between the Eurasian Economic Union (EAEU) and its member states, on the one hand, and Iran, on the other hand, Trend reports with reference to the President’s website.

The three-year agreement allows Kazakhstani exporters to provide the Iranian market with beef, mutton, legumes, vegetable oils, macaroni and confectionery, rolled steel, rails, batteries, fittings, and pipes at a reduced rate.

In turn, the EAEU participating countries will reduce import duties on 502 goods including, among others, pistachios, dates, figs, raisins, shrimps, confectionery, dishes, detergents, carpets and plastic products.

The agreement approved by the Senate of Kazakhstan will enter into force 60 days after the completion of the procedures for its ratification.

As expected, within a year after the ratification of this agreement, the EAEU member states and Iran will begin negotiations on a permanent agreement on a free trade zone.

The volume of mutual trade between Kazakhstan and Iran last year amounted to $516.3 million, of which Kazakhstan's exports to Iran accounted for 82.6 percent. The main export products are barley, rolled steel, rapeseed and lamb.


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