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Iran, EEU to set up three more working groups geared to expanding trade
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.
Despite the prominence given to the PTA agreement by Iranian officials, Iran, for instance, still throttles imports of rice from EEU states during the summer months. The country is hugely protectionist towards its northern rice production. Any hint of competition to the limited production of rice in Iran would be seen as negative for the Rouhani administration.
Iran specifically bans the import of “semi-milled or wholly milled rice, whether or not polished or grazed” from July 23 to October 23 annually. However, during periods when it is not banned, there a PTA reduction of 42% on imports from the EEU to Iran applies. It remains to be seen how this limited import agreement will work in practice.
Iran and the Russia-led Eurasian Economic Union (EEU) are to create three more working groups on expanding trade ties, according to the head of the Iranian Trade Promotion Organisation (TPO), Hamid Zadboum, as reported by Mehr News Agency.
Following the holding of an Iran-EEU joint working group session via video conferencing, the two sides reportedly agreed on working groups that will focus on customs, standards and health and safety.
Zadboum also mentioned that the formation of working groups on banking and transportation and transit development was discussed, while the session also looked at the possible development of free economic zones by the Iranian border.
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
25 IRAN Country Report August 2020 www.intellinews.com
