Page 19 - IRANRptApr19

EEU member states approve roadmap to bring Iran into free trade zone
measure making travel visas free of charge for pilgrims and other travellers were also set to emerge from Rouhani’s talks with Iraqi officials.
Rouhani said Shi’ite Muslim Iran was determined to strengthen ties with its Shi’ite-led Arab neighbour, Iranian state television reported.
Iranian Foreign Minister Mohammad Javad Zarif said on Twitter that the two countries were in discussions to create joint industrial zones. These would likely emerge near the Arvand Free Trade Zone in Iran which borders Iraq.
An agreement was signed at the Astana Economic Forum on May 17 to begin the process of Iran’s economic integration into the Russian-led Eurasian Economic Union (EEU). Trade between the EEU—which groups Russia, Kazakhstan, Kyrgyzstan, Armenia and Belarus—reached $2.7bn last year.
The Russian Ministry of Industry and Trade has said that a fully fledged agreement on a f ree trade area (FTA) between Iran and the EEU would be concluded by early 2022.
In April last year, Russian Prime Minister Dmitry Medvedev a pproved a draft interim agreement establishing the FTA that will embrace Iran.
Since it was founded in 1979, the Islamic Republic of Iran has never managed to conclude a free trade agreement (FTA) with another country or economic bloc . In recent months, Tehran has repeatedly pushed Moscow to enable the sealing of the EEU deal. Iran sees access to Russia and the EEU as a major step to expanding its trading area to the north.
The applicable FTA list of goods for EEU countries in the deal with Iran would include meat and fat-and-oil products, certain types of confectionery, cosmetics and electronic and mechanical equipment. Iran on the other hand would enjoy tariff preferences on items including vegetables, fruits, dried fruits and building materials. Iran’s deal with the EEU will include most commodity groups, however, there remains a doubt whether automotive and industrial machinery will be covered by the deal.
5.3 FDI
Iran FDI 2010 2011 2012 2013 2014 2015 2016
FDI net inflows (BoP) (USD bn)
3.649 4.277 4.662 3.05 2.105 2.05 3.37
FDI net inflows (% of GDP)
0.749 0.733 0.778 0.653 0.485 0.531 0.805
FDI net outflows (% of GDP)
0.049 0.044 0.226 0.04 0.001 0.031 0.025
source: World Bank
Iran offers residence ‘$250K’ investors
Foreign investors who invest a minimum of $250,000 in Iran are to be offered a five-year residence permit, Mehr News Agency has reported. The threat of renewed US sanctions has seen many foreign investors in Iran make for the exit in recent months, with even EU efforts made so far in fighting back against Washington’s policy failing to dissuade a slew of big European companies from leaving the country. Air France and British Airways are among the latest big companies to announce they are ending their Iran operations . Turkey, which like Iran is fighting economic turmoil, recently made a similar
19 IRAN Country Report April 2019 www.intellinews.com