Tehran, December 31, 2024 – Iran's trade with the Eurasian Economic Union (EAEU) has surged by 2.5 times since the implementation of a Preferential Trade Agreement (PTA) five years ago, according to Mohammad Ali Dehghan Dehnavi, Head of Iran's Trade Promotion Organization (TPO).

Speaking to members of the Entrepreneurs’ Assembly on Monday, Dehnavi highlighted the PTA's success in reducing tariffs on select goods, significantly boosting trade with the bloc comprising Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan.

"This achievement underscores the crucial role of preferential and free trade agreements in expanding market access," Dehnavi emphasized. "Building on this momentum, we are now actively pursuing a Free Trade Agreement (FTA) with the EAEU."

The FTA, already approved by the parliaments of all five EAEU member states, awaits ratification by Iran's Guardian Council. It is expected to enter into force at the beginning of the next Iranian year, further deepening economic ties and facilitating trade flows between Iran and the bloc.

Beyond the EAEU:

Dehnavi also revealed that the TPO is actively engaged in negotiations for PTAs with other countries. "Currently, we are actively negotiating a PTA with Pakistan," he stated.

Analysis:

The significant increase in trade under the existing PTA demonstrates the potential of closer economic integration between Iran and the EAEU. The impending FTA promises to unlock even greater economic benefits for both sides, potentially leading to increased investment, job creation, and economic growth.