Iran-Eurasia Free Trade Agreement Likely to Be Implemented in Early 2025
TEHRAN (Iran News) Mirhadi Seyyedi, Iran’s lead negotiator for the agreement, highlighted the substantial benefits of free trade. “Over half of global exports operate under free trade agreements. These agreements eliminate customs tariffs on goods, serving as a crucial facilitator for international trade,” he explained.
Seyyedi emphasized that while the concept of free trade agreements (FTAs) has become widespread over the past three decades, a limited portion of Iran’s exports—roughly 5%—currently benefit from such agreements. This gap, he noted, underscores the need for expanding FTAs to bolster Iran’s export potential.
The proposed agreement, recently approved by Iran’s Parliament, must now receive the endorsement of the Guardian Council. Following this, the agreement is set to be implemented within two months. Seyyedi expressed optimism that the deal would come into effect in early 2025.
Despite the agreement’s promising framework, Seyyedi cautioned that realizing its full potential will take time. “Customs tariffs are a key element, and their removal facilitates trade. However, other factors such as transportation, logistics, and financial exchanges must also align with this new trade dynamic,” he said.
He further noted that the gradual growth of trade under the agreement would depend on the evolution of supporting infrastructure and the emergence of new trade capacities.
The Iran-Eurasia Free Trade Agreement represents a strategic move to integrate Iran into the global trading system more effectively. The EAEU, comprising Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan, is a significant regional bloc with extensive economic potential. The agreement is expected to enhance Iran’s trade ties with these countries, providing a substantial boost to its non-oil exports and economic diversification efforts.
While the exact timeline for maximizing the agreement’s benefits remains uncertain, its phased implementation marks a critical step towards strengthening Iran’s trade position on the global stage.
- source : IRAN NEWS ECONOMIC DESK
