“With the measures taken for the promotion of exports in the country, the trade balance of the free trade and special economic zones has become positive over the past three years,” Hamidreza Mo’meni said.

Speaking at a meeting of Bushehr free trade zone’s strategic council, Mo’meni said: “However, there are still weaknesses in the first and second generation of the country’s free trade and special economic zones, which we will try to minimize by improving the infrastructure in these zones.”

The official noted that the country’s free trade zones lack a comprehensive development plan which means the managers of each zone act based on their own preferences.

Exports, transfer of technical knowledge, attracting domestic and foreign investment, and creating sustainable employment are among the expectations from free trade zones, and in order to prepare a comprehensive plan for the development of free zones, these issues should be considered for the next 50 years.

Noting that Bushehr free trade zone will be officially inaugurated by President Hassan Rouhani in near future, he expressed hope that this free trade zone can play a positive role in boosting trade with the country’s southern neighbors.

Earlier this month, Mo’meni had announced that some new free trade zones are planned to be set up in the country in the current Iranian calendar year (ends on March 20, 2022).

“If we can settle the subject of the comprehensive plans of these zones, I think by the end of this year, the new free zones will be added to the existing ones,” he said on July 12.

The establishment of free trade zones in Iran dates back to the Iranian calendar year 1368 (March 1989- March 1990) following the fall in the country’s oil income in the preceding year which prompted the government to promote the non-oil exports.

The first two free trade zones of Iran were established in the south of the country. The first one was Kish Free Trade Zone established in 1368 on Kish Island in the Persian Gulf and the second one was Qeshm Free Trade Zone established the year after on Qeshm Island in the Strait of Hormuz.

Some five other free trade zones have been also established in the country since then, including Chabahar in southeastern Sistan-Baluchestan Province, Arvand in southwestern Khuzestan Province, Anzali in northern Gilan Province, Aras in East-Azarbaijan Province, and Maku in West-Azarbaijan Province, both in the northwest of the country.

While near three decades have passed since the start of free trade zones activity in Iran, their planned objectives have not been fully achieved and their development is still facing some impediments.

Lack of proportion between the facilities and the objectives, lack of a national definition for free trade zones’ performance, limited resources for establishment and completion of infrastructures, no comprehensive management between the zones, and not complete implementation of zones management law are some of the barriers in the way of free trade zones’ activity and development in the country.

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The official pointed to the “great potential for large local and international companies to invest in the FTZ at IKAC,” saying, the short distance to capital Tehran and easy access to IKAC’s surrounding areas have provided a great opportunity for investors in this zone.

The process of registering a company takes seven days upon the establishment of the new building, he added.

IKAC, which includes a 1,500-hectare free trade zone and a 2,500-hectare special economic zone in a 13,700-hectare area, aims at helping national and international companies cluster around the airport and engage in business activities, Karimian said.

The airports free trade zone was launched in June.

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IRAN NEWS NATIONAL DESK

“The agreement will pave the way for further expansion of ties between Iran and the EAEU,” he was quoted as saying in a report by ISNA.

The minister expressed hope that the agreement is implemented as soon as possible, preparing the ground for further mutual ties.

His remarks came after the Iranian parliament on Monday ratified the agreement that allows the administration to join the free trade zone with the Eurasian Economic Union (EAEU) countries.

The Eurasian Economic Union is an economic union of states located in central and northern Asia and Eastern Europe. The Treaty on the Eurasian Economic Union was signed in 2014 by the leaders of Belarus, Kazakhstan and Russia, and came into force on 1 January 2015.

In his Sunday comments, Ardakanian also referred to the cooperation underway between Iran and Russia in tourism sector and said the two sides can take advantage of the Caspian Sea tourist capacities through joint projects.

He went on to say that tariff rates of a number of 800 goods and commodities decreased in business relationship between Islamic Republic of Iran and North Caucasus region.

Ardakanian added, “The Temporary Free Trade Agreement is concluded between Iran and five Eurasian Economic Union (EEU) member states, based on which, tariff rates of more than 800 commodities will be subject to tariff deduction.”

The business ties between Islamic Republic of Iran and Russian Federation has been moved forward in recent years, he reiterated.

In his meeting with the Minister of the Russian Federation for North Caucasus Affairs Sergey Viktorovich Chebotarev, Ardakanian stated, “with a population of 10 million, North Caucasus region has an important and key role for boosting bilateral relationship between Islamic Republic of Iran and Russian Federation in a way that this region is considered as an entrance gateway for Iran’s goods to Russia and vice versa.”

He pointed to the five separate visits between Iranian and Russian presidents and also strengthening parliamentary diplomacy between Tehran and Moscow and emphasized, “in general, trade and business delegations of the two countries have held various expert-level sessions which shows development of bilateral ties between Iran and Russia in all political, security, economic and cultural dimensions.”

Location of North Caucasus region en route International North-South Transport Corridor (INSTC) has contributed development of cooperation, so that Islamic Republic of Iran has taken widespread measures for connecting domestic rail networks with this corridor, he said, adding, “the recent inauguration of Qazvin-Rasht railway line, as long as 165 km, is a clear example of this claim.”

Meanwhile a Russian official in the forum said that Moscow trade volume with Tehran has increased in 2018 but it must be increased more.

The Russian-Iranian trade exceeded $1.7 billion in 2018, but the two countries have a potential to increase this indicator, Russian Minister for North Caucasus Affairs Sergei Chebotarev  said .

The Russian minister noted that this volume was very modest adding that Russia and Iran had a ‘much higher potential’ in this field.

According to Chebotarev, the two sides must do everything possible to achieve a new level in bilateral trade.

2th Iran-Caucasus Joint Economic Committee meeting kicked off on Sunday with Iranian Energy Minister Ardakanian, the Minister of North Caucasus Affairs of the Russian Federation Chebotarev, the deputy prime minister of the Russian Republic of Dagestan and eight regional ministers in attendance.

During the three-day events, nine working groups and three specialized committees are scheduled to be held to explore cooperation in a variety of areas including industry, energy, transport, ICT, etc.

Establishing a freight line between Zhukovsky International Airport in Moscow and Isfahan International Airport, joint production of freight wagons, joint production of small-scale turbines, joint production of heavy vehicles, and exports of meat from North Caucasus region to Iran are some of the projects which are going to be discussed during the Joint Economic Committee meeting.

It is also agreed for the two countries’ businessmen and entrepreneurs to hold B2B talks on the sidelines of the upcoming event in order to explore avenues of mutual cooperation.

As part of the Russian Federation, the Northern Caucasus region is included in the North Caucasian and Southern Federal Districts and consists of Krasnodar Krai, Stavropol Krai, and the constituent republics.

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“The creation of the necessary infrastructure has increased the capacity for Iran’s non-oil exports from the Arvand Free Zone,” he added.

He said that tourists can visit Arvand Free Zone and Abadan and Khorramshahr cities without visa.

Arvand Rud dredging can provide a suitable platform for commercial vessels and boost maritime tourism industry in the region.

The Arvand Free Zone with an area of 37,400 hectares is at the confluence of the Karun and Arvand rivers. The Zone is located at a height of three meters above sea level and in proximity to Iraq and in the northwest of Persian Gulf.

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