Page 22 - IRANRptMar20

Iran-EEU trade ‘has surpassed $1bn mark since inception of PTA three months ago’
agricultural products but are also increasing export deliveries. The export of agricultural products of the Samara region last year exceeded $315mn," Samara governor Dmitry Azarov was cited as saying.
Head of the Iranian delegation, Alireza Jafari, said 70% of Iranian exports to Russia comprised of foodstuffs.
"This will be a great incentive for the development of trade relations between our countries," Jafari said in reference to the planned Iran/Russia trade house that is to open in Samara.
Along with agricultural products, Russia is also looking to boost exports to the Iranian market of industrial products including mineral fertilizers, automotive parts and car and truck batteries.
The temporary PTA between Iran and the EEU is the only such economic agreement signed by the Islamic Republic since it was founded in 1979, with more than 862 items seeing a significant tariff change, with many tariffs reduced to zero.
Iran’s bilateral trade with the Eurasian Economic Union (EEU) has surpassed the $1bn mark since the late October implementation of a two-year preferential trade agreement (PTA), IRNA reported on February 9.
The international affairs head of the Islamic Republic of Iran Customs Administration (IRICA), Hossein Kakhaki, reportedly made the announcement at a recent regional trade conference.
The temporary PTA between Iran and the Moscow-led EEU—which groups Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan—is the first such economic agreement signed by the Islamic Republic since it was founded in 1979.
“The Eurasian [Economic Union] countries are home to 94mn people, and rank first, second and fourth in terms of energy, gas and electricity generation respectively,” Kakhaki said.
He added “that good perspectives have been predicted for Eurasia... especially as some countries like India jave initiated talks to join the EEU... and it is predicted that India will turn into the world’s second-largest economy by 2025 after the People’s Republic of China.”
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 will be a PTA reduction of 42% on imports from the EEU to Iran. It remains to be seen how this limited import agreement will work in practice.
The PTA will also apply to buckwheat consignments sent to Iran, with the tariff falling from 40% to 6% and “crude oil, whether or not degummed”, with a decrease to 10% from 40%.
22​ IRAN Country Report​ March 2020 www.intellinews.com