Page 27 - IRANRptOct20

the current year rising from last year’s $95.1bn.
Iran’s economy is set to fall deeper into recession this fiscal year and foreign reserves were set to drop to $73bn by March, a loss of almost $40bn in two years, the Institute of International Finance (IIF) stated in January.
5.2​ FTA, multilateral agreements
Iran small industries, industrial parks body inks MoU with Chinese peer
EEU countries scrap tariffs on 10 Iranian export categories under temporary PTA
Iran Small Industries and Industrial Parks Organization (ISIPO) and China International Small and Medium Enterprises Fair have signed a memorandum of understanding (MoU) on the expansion of industrial and commercial cooperation.
Analysts are keeping a close eye on growing relations between Beijing and Tehran—the Chinese and Iranians have been working on drafting a huge strategic trade and investment alliance, under which China would be partly paid in oil, but the outcome of the November US election and the White House policies in store for China and Iran from the winner of the contest might determine whether they pursue the agreement.
ISIPO head Mohsen Salehinia and Wu Hong, the Chinese deputy director general of the Department of Industry and Information Technology of Guangdong Province, inked the MoU in an online ceremony.
As reported by the ​Tehran Times​, Salehinia said: “Considering that Iran Small Industries and Industrial Parks Organization and China International Small and Medium Enterprises Fair have had successful cooperation in recent years, sufficient ground and experience has been formed for the development of industrial and trade relations.”
“So far, more than 50 Iranian companies have participated in this exhibition [China International Small and Medium Enterprises Fair] and offered their products to the Chinese market, the result of which was signing some successful cooperation agreements,” Salehinia added.
Wu Hong reportedly noted that Iran was seen by China as an important economic and trade partner in West Asia due to its excellent cooperation in these fields.
The five nations that form the Moscow-led Eurasian Economic Union (EEU) have removed tariffs on 10 categories of exports from Iran as part of the two-year preferential trade agreement (PTA) with Tehran that commenced last October, according to an Iranian official cited by IRNA.
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
27​ IRAN Country Report October 2020 www.intellinews.com