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PTA
The temporary PTA between Iran and the trade bloc—which groups Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan—was the first such economic agreement signed by the Islamic Republic since it was founded in 1979. It is likely to turn into a fully-fledged economic and possibly, to an extent, political union if both sides keep to stick to the agreement and build on it. The accord applies preferential tariffs to 862 agricultural and industrial products, of which 502 are Iranian. Its tariffs vary, while some are eliminated altogether.
A member of the Mining and Trade Organization of Gilan Province in Iran, Mohammad Feyz, said the EEU said the tariff exemptions on the 10 additional items would remain in place until June 30 at least. He added that the impact of the ongoing coronavirus pandemic was a consideration in extending the special tariff treatment.
The 10 product categories include “agricultural and food products” (potatoes, onions, garlic, cabbage, carrots, peppers, rye, long-grain rice, buckwheat, juices and prepared foods for baby food) and “selected finished medicines and medical supplies” (endoscopes, non-contact thermometers, disposable pipettes and mobile disinfection units).
Iran’s bilateral trade with the EEU has officially surpassed the $1bn m ark since the PTA was brought in, IRNA reported on February 9. Latest local reports indicate the figure presently stands at around $1.4bn.
5.3 FDI
Iran FDI 2010 2011 2012 2013 2014 2015 2016 2017
FDI net inflows (BoP) (USD bn)
3.649 4.277 4.662 3.05 2.105 2.05 3.372 5.019
FDI net inflows (% of GDP)
0.749 0.733 0.778 0.653 0.485 0.531 0.805 1.105
FDI net outflows (% of GDP)
0.049 0.044 0.226 0.04 0.001 0.031 0.025
source: World Bank
Five-year residences in Iran offered to foreigners who bring $250,000 investment
Iran’s Interior Ministry has announced that with a $250,000 investment in the economy a foreigner can be granted a five-year residency, Tasnim News Agency reported on July 31.
Like other regional countries including Turkey and Azerbaijan, Iran is attempting to increase its income from foreign direct investment (FDI), but transferring money from abroad to an Iranian bank account is presently a perilous activity given the heavy US sanctions aimed at Iran, which can trigger secondary sanctions against foreigners in such cases. Thus, a foreigner looking to take advantage of the offer would likely have to bring cash.
Interior Minister Abdolreza Rahmani Fazli said the plan was aimed at boosting investment into several sectors of the Iranian economy, which has plunged back into recession since the new US sanctions regime started taking effect last year.
“According to a plan approved by the administration, any foreigner who invests or deposits $250,000 [in a bank account] in the country is granted a five-year
28 IRAN Country Report November 2020 www.intellinews.com
