Page 25 - IRANRptAug21

Iran, EEU to start talks on establishing FTZ
The shipment corridor can be used for the export of goods, the supply of technologies and machinery as well as engineering and technical services, the deputy minister emphasised.
According to the official, Armenian industry is in dire need of Iran’s industrial progress, and the opportunity should be utilised in due time; otherwise, the rival states will take the opportunity.
Trade exchanges between Armenia and Iran increased from about $80mn in previous years to around $500mn in recent years, Mortaji went on to say. House building products, agriculture products and equipment, foodstuff, medical tools, home appliances and solar panels are among Iran-made commodities that could find proper demand in Armenia, he said.
Head of the Iran-Armenia Joint Chamber of Commerce Hervik Yarijanian pointed out the mutual trade worth $500mn, noting that setting up a new free trade zone at the joint border could help increase trade volume.
Yarijanian expressed the hope that thanks to neighbourliness, the two countries could magnify trade to $1.2bn within less than one year.
Iran and the Moscow-led Eurasian Economic Union (EEU) are set to begin negotiations to establish a fully-fledged free trade zone (FTZ) in the near future, the press service of the bloc’s Eurasian Economic Commission (EEC) has announced.
The decision to set up talk for an FTZ was made following a meeting between EEC board chairman Mikhail Myasnikovich and Iranian Energy Minister Reza Ardakanian, who also serves as the head of the EEU and Iran’s joint economic committee. The meeting took place on the sidelines of last week’s St Petersburg International Economic Forum.
Article 1.3 of the interim FTA provides for a path to negotiations aimed at creating a permanent FTZ.
“The EEU member states [of Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia] are currently finalising the mandate for the negotiations,” Myasnikovich said. “We expect to complete the necessary procedures and prepare for the talks by the end of June 2021.”
In 2020, Iran-EEU trade amounted to a value of $2.9bn, marking an 18.5% y/y gain, Myasnikovich said.
In 1Q 2021, the bloc’s exports to Iran rose by 43.5% y/y, while imports from Iran increased by 20% y/y, he added. Trade expanded by over a third year on year to total $1.15bn.
For two years, Iran and the EEU—made up of Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan—have operated a preferential trade agreement (PTA) covering more than 800 products. That deal is set to expire towards the end of this year, but Iran is seen as angling for full membership of the bloc as the next stage of mutual trade development. The EEU also has preferential trade agreements with Vietnam, Singapore and Serbia.
5.3 FDI
Iran FDI 2012 2013 2014 2015 2016 2017 2018 2019
FDI net inflows (BoP) (USD bn)
4.662 3.05 2.105 2.05 3.372 5.019 2.373 1.508
FDI net inflows (% of GDP)
0.778 0.653 0.487 0.533 0.807 1.127 0.523 0.2
FDI net outflows (% of GDP)
0.226 0.04 0.001 0.031 0.025 0.017 0.016
source: World Bank, CEIC
25 IRAN Country Report August 2021 www.intellinews.com