The Eurasian Economic Union (EAEU), led by Russia, has signed a comprehensive free trade agreement with Iran.
This agreement, formalized in St. Petersburg ahead of the EAEU summit, replaces a similar temporary pact that has been in effect since 2019.
The new deal aims to eliminate customs duties on almost 90% of the goods traded between Iran and EAEU member states, while a preferential regime will still govern the remaining 10% of commodities.
This development comes as both the region and Iran seek to diversify their trade partners, particularly in light of Western sanctions that have limited Russia’s foreign trade routes.
The free trade agreement is expected to enhance mutual trade significantly, building on the growth achieved under the previous provisional agreement.
For instance, mutual trade between Iran and the EAEU increased to $6.2 billion in 2022 from $2.4 billion in 2019.
The Eurasian Economic Union, which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, has been focusing on expanding its global trade relationships.
This agreement with Iran is a step towards that goal, providing new opportunities for trade and economic collaboration between the members of the EAEU and Iran.
