TEHRAN (Iran News) Mohammad Lahooti highlighted that the agreement granting Iran observer status in the EAEU was signed on Thursday, December 27, by the heads of the five member states of the union. Lahooti stated that Iran’s export volume to Eurasian countries reached $1.5 billion during this period, while imports amounted to $1.6 billion, showcasing a balanced and growing trade relationship. ” Iran-Eurasia”

Lahooti emphasized the significance of regional trade agreements in today’s global economy, describing them as vital tools for fostering international trade. He pointed out that such agreements act as two-way bridges between countries, enabling smoother and more advantageous trade exchanges.

He noted Iran’s recent strides in regional cooperation, including joining the Shanghai Cooperation Organization (SCO) two years ago and now becoming an observer in the EAEU. These developments, Lahooti asserted, are instrumental in expanding export markets for Iranian goods and services.

Expanding trade with neighboring markets remains a top priority for the Iranian government, particularly under its 14th administration. Lahooti praised the government’s proactive measures to enhance trade relations with neighboring countries but stressed that reducing tariffs is a crucial factor in maximizing trade benefits.

“Our main exports consist of raw and semi-processed materials, particularly in petrochemicals and cement, which have relatively low added value. However, if our trading partners export high-value-added goods, it could pose challenges for our domestic industries,” Lahooti cautioned.

He stressed the importance of balancing tariff reductions to avoid turning Iran into an import-driven market. Instead, he advocated for strengthening domestic production capacities and leveraging the EAEU framework to boost exports.

Lahooti underlined the necessity for Iranian businesses to understand global markets better. “Traders must identify products suited to target markets and comply with international standards to enhance export potential,” he said. He added that effective market presence requires a deep understanding of the target country’s trade laws, consumer behavior, and cultural preferences.

Exporters, he noted, must be equipped with language proficiency and knowledge of trade regulations to navigate foreign markets successfully.

Iran’s observer status in the EAEU was formalized during the organization’s Supreme Council meeting in Saint Petersburg, attended by Seyed Mohammad Atabak, Iran’s Minister of Industry, Mining, and Trade. The agreement was signed along with 17 other documents aimed at enhancing cooperation among member states.

This strategic move is expected to strengthen Iran’s position in the Eurasian economic landscape, paving the way for broader trade opportunities and increased regional influence.

The 20% growth in Iran-Eurasia trade marks a promising trend, reflecting Iran’s determination to integrate more deeply into regional economic frameworks. By capitalizing on such agreements, the country aims to diversify its trade portfolio, strengthen its industrial base, and foster sustainable economic growth. However, the success of these efforts will depend on careful policy implementation, including tariff management and robust market research by Iranian exporters.

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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.

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