Iran to Slash Import Tariffs on Eurasian Economic Union Goods to 4.5%

TEHRAN (Iran News) According to a statement from Iran’s Trade Promotion Organization (TPO), the new agreement replaces a temporary trade deal that has been in place since 2019 and only covered a limited range of products. The new full-scale agreement offers extensive tariff cuts and is expected to dramatically boost trade volumes and economic cooperation between Iran and the EAEU’s five member states: Russia, Kazakhstan, Belarus, Kyrgyzstan, and Armenia.

The agreement was signed in December 2023 and has since been ratified by all member states and Iran. According to the Eurasian Economic Commission (EEC), the average tariff rate on goods imported from the EAEU to Iran will now fall to just 4.5%, paving the way for more competitive pricing and easier market access.

EEC Minister of Trade Andrey Slepnev confirmed that preparations are underway for the first joint committee meeting between Iran and the EAEU, scheduled for the second half of 2025. The committee will focus on expanding economic cooperation, facilitating trade, and ensuring effective implementation of the agreement’s terms.

The scope of the new agreement is considerably broader than its predecessor. It covers around 90% of tradable goods, offers reciprocal commitments to preferential treatment, and introduces a detailed regulatory framework designed to eliminate trade barriers.

Experts suggest that this deal could double the trade volume between Iran and the EAEU, raising it to approximately $12 billion in the medium term. Russian officials, cited by Interfax, highlighted the strategic importance of this move, noting that Iran is now opening its domestic market to third-party countries for the first time in a meaningful way—marking a shift from its previous import-protection policies aimed at supporting domestic industries.

According to the Eurasian Economic Commission, annual savings on customs duties for EAEU suppliers could reach up to $380 million.

The EAEU is an international economic union aimed at enhancing economic integration among its member states. It facilitates the free movement of goods, services, capital, and labor, while also aligning member nations’ economic policies.

Kazakhstan ranked third among EAEU members in terms of economic growth in 2024. Additionally, the bloc is launching new financial support mechanisms for farmers.

Annual customs duty savings for EAEU exporters are projected to reach $380 million, offering substantial cost reductions for suppliers in key sectors such as agriculture, energy, and industrial goods.

The agreement is also expected to enhance transit traffic along the International North-South Transport Corridor (INSTC), a multi-modal route linking India, Iran, Central Asia, and Russia. As Iran seeks to position itself as a regional logistics and energy hub, smoother trade flows and improved connectivity through the EAEU could offer both economic and geopolitical advantages.

The Eurasian Economic Union, formed in 2015, is an international economic bloc that facilitates the free movement of goods, services, capital, and labor among member states, while aligning economic policies. It serves as a key player in regional economic integration and aims to promote deeper cooperation between former Soviet economies.

Kazakhstan, which recorded the third-highest economic growth rate among EAEU members in 2024, is a major player in the bloc. Additionally, the EAEU recently announced new financial support mechanisms for farmers across member states, indicating a broader economic development agenda tied to the trade agreement.

As both sides continue finalizing the operational aspects of the deal, observers say this could mark a turning point in Iran’s trade diplomacy, signaling a pivot toward greater integration with Eastern markets amid ongoing sanctions and global economic realignments.