EAEU - basis for strengthening of Kazakh-Iranian trade?

Business Materials 11 January 2020 18:25 (UTC +04:00)

BAKU, Azerbaijan, Jan. 11

By Nargiz Sadikhova - Trend:

Eurasian Economic Union (EAEU) could be the basis for development of trade and economic relations between Kazakhstan and Iran, a representative of Kazakhstan’s Ministry of Trade and Integration told Trend.

According to the representative, common historical, cultural and humanitarian ties between Iran and Kazakhstan are the basis for establishment and development of bilateral relations in trade and economic, transport and logistics, agricultural sectors.

“Kazakhstan for the most part is interested in development of trade and economic cooperation with Iran and EAEU could help in doing so,” the official said.

Thus, the official noted, temporary agreement which oversees creation of free trade zone between EAEU and Iran has entered into force on Oct. 27,2019.

“Formation of the zone is one of the priorities for EAEU due to the fact that business community of EAEU countries is getting more interested in developing trade with Iran,” the official said.

According to the representative, the agreement oversees limited product coverage, however it covers almost all goods which account for 55 percent of EAEU countries.

“These are agricultural and industrial goods. Preferential import coverage accounts for 49 percent of overall Iranian import to EAEU countries,” the official said.

He also noted that the document provides for additional impetus for development of trade relations via creation of transparent and predictable trade conditions based on World Trade Organization (WTO) rules, as well as provides for assets saving when paying customs fees.

“In particular, agreement parties will ensure the most favored national treatment for all goods traded between the EAEU and Iran: all fees associated with the import of goods should not exceed the cost of services rendered for customs clearance; unjustified non-tariff measures restricting trade should not be applied to goods listed in the agreement,” the official said.

These are among the most important rules of WTO and they provide for predictability of the trade regime between countries.

Concluding, the official noted that the temporary agreement will provide for increase of trade relation between both EAEU countries themselves, and trade between EAEU and Iran.


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