Page 24 - IRANRptAug20

deal with Beijing
EEU countries scrap tariffs on 10 Iranian export categories under temporary PTA
value of $400bn—Iran would guarantee China discounted oil and petrochemical exports while China would offer a credit line and and perhaps vast investments in banking, telecommunications, ports, railways and dozens of other projects. The agreement would also potentially include joint military training, military exercises, counter-terrorism cooperation, intelligence sharing and arms transfers to Iran. The prospect of the deal has met with resistance among Iranians reluctant to dramatically raise dependence on China, while the US Trump administration would be nervous as to how much such a strategic partnership could undermine its “maximum pressure” campaign directed at scaling back Tehran’s influence in Middle East affairs.
Gholam-Hossein Jamili, a board member of ICCIMA, said in a meeting with representatives of large companies that Iran would open the office based on the duties of the “resistance economy” as set out by Supreme Leader Ayatollah Ali Khamenei. The term is largely seen as referring to the market and economic approaches Iran and its companies must pursue to counter the effects of US sanctions aimed at throttling the Iranian economy, such as replacing imported goods with domestically made products or entering into grey market transactions to escape the detection of American officials.
Both Iran and China are nations opposed to US global leadership and share an interest in limiting Washington’s influence in the Middle East, though the Chinese might not move to sign any huge deal with the Iranians until it is clear that the prospect of a satisfactory US-China trade deal is off the table.
Iran has opened trade offices in Russia in line with the temporary two-year preferential trade agreement​ (PTA) with the Eurasian Economic Union (EEU) that came into effect last October. The offices are in the cities of Astrakhan and Moscow.
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 tariff treatment.
The 10 product categories include “agricultural and food products” (potatoes, onions, garlic, cabbage, carrots, peppers, rye, long-grain rice, buckwheat, juices and prepared foods for baby food) and “selected finished medicines and medical supplies” (endoscopes, non-contact thermometers, disposable pipettes and mobile disinfection units).
24​ IRAN Country Report August 2020 www.intellinews.com