BAKU, Azerbaijan, Nov. 20
By Elnur Baghishov - Trend:
Iran should introduce a preferential tariff for the sale of Iranian products to India and China, some African and European countries, said Vice Chairman of Trade Facilitation Commission of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Mohammadreza Faroughi, Trend reports referring to IBENA.
Faroughi said that national currencies should be used in trade with these countries. These two factors will contribute to the development of Iran’s trade, the vice chairman added.
Faroughi noted that to take advantage of Iran’s trade potential, it is necessary to take professional and reciprocal steps in international trade to avoid the US sanctions.
Praising Iran’s membership in the Eurasian Economic Union (EAEU), the vice chairman noted that one of the opportunities of this membership is that this Union may play a mediator role between Iran and international economic organizations of which Iran isn’t a member, such as the World Trade Organization.
Faroughi said that over the next three years, Iran should work with EAEU to lift all tariffs.
“There is a preferential tariff for import of 360 types of products,” the vice chairman noted. “However, many of these products are of the 4th priority level in imports.”
Faroughi added that as long as this process continues, member states will consider membership in EAEU necessary for Iran to overcome the sanctions.
One of the trade opportunities with EAEU is the use of national currencies, vice chairman noted.
“However, under Iranian law, it is impossible to use rials in trade even with Iraq and Afghanistan,” Faroughi said.
Iran’s trade principles should be based on transparency, the vice chairman noted, adding that for example, Iran has to pay custom duties in the amount of 40 percent of the exported product’s value, while Afghanistan has to pay custom duties in the amount of only 5 percent of the exported product’s value.
The product is transported from Iran to Afghanistan and after the change in the documents, exported to another country, Faroughi added.
The US imposed sanctions on Iran in November 2018 and expanded the list of sanctions several times.
On October 27, 2019, the Preferential Trade Agreement (PTA) between Islamic Republic of Iran and EAEU came into effect. In accordance with the memorandum, 862 kinds of products will be imported and exported upon the preferential tariffs between the two parties. As agreed, Iran will export 502 kinds of products and import 360 kinds of products.
Iran will mainly export pistachios, kiwi, oil products, raisins, cucumbers, cabbages, persimmons, medicines, cement, copper and methanol. The country will mainly import barley, animal feed, oil, cathode and wood from the EAEU member states.