Page 20 - IRANRptNov18

CBI has over €70bn in hard currency reserves
The Central Bank of Iran (CBI) has more than €70bn in hard currency reserves, according to the National Development Fund of Iran (NDFI). However, as restrictions continue on trade and withdrawal of cash from forex reserves, the country is looking for ways to find new revenues of hard currency.
5.2 FTAs
EEU member states approve roadmap to bring Iran into free trade zone
MPs agree 20 new free trade zones and special economic zones
The Commission Council of the Russia-led Eurasian Economic Union (EEU) has approved a roadmap for Iran’s entry into a free trade zone to be shared with the trade bloc, AzerNews reported on September 22.
Trade between the EEU—which groups Russia, Kazakhstan, Kyrgyzstan, Armenia and Belarus—reached $2.7bn last year.
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.
An agreement was signed at the Astana Economic Forum on May 17 to begin the process of Iran’s economic integration into the larger economic community. The Russian Ministry of Industry and Trade has said that a fully-fledged agreement on an FTA between Iran and the Eurasian Economic Union would be concluded by early 2022.
On April 26, Russian Prime Minister Dmitry Medvedev approved a draft interim agreement establishing the FTA that will embrace Iran. Medvedev’s order for the outlined agreement was published on April 24 on the Kremlin’s official website.
According to Russian Energy Minister Aleksandr Novak , who is also co-head of the Russian-Iranian Intergovernmental Commission, the free trade zone milestone “will obviously trigger further development of our bilateral trade and expansion of investment cooperation”.
Iranian MPs have approved a bill to create eight new free trade zones by borders of Iran and 12 new special economic zones (SEZs) situated near cities, Islamic Republic News Agency reported on September 1. Iran has several free zones already in operation near points of entry to the country and two on islands in the Persian Gulf, Kish and Qeshm. The strategic plan for free zones in Iran aims to attract manufacturing to the more impoverished remote areas and push manufacturers away from Tehran, where 16% of Iran’s population of 80mn people live.
20 IRAN Country Report November 2018 www.intellinews.com