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Eurasian Economic Union

Russian lawmakers approve ratification of FTA between EAEU and Iran

The agreement presents the basic rules of trade between the EAEU and its member states and Iran in a form "as close as possible to the rules" of the WTO, containing other obligations that will continue to apply within the EAEU

MOSCOW, June 5. /TASS/. The Russian Federation Council approved the law on the ratification of a free trade agreement between the member states of the Eurasian Economic Union (EAEU) and Iran.

The document was signed in St. Petersburg on December 25, 2023 and is expected to replace the temporary agreement on the formation of a free trade zone between the parties of May 17, 2018. The agreement presents the basic rules of trade between the EAEU and its member states and Iran in a form "as close as possible to the rules of the World Trade Organization (WTO)". These rules include most-favored-nation principle and national treatment, the use of safeguard measures and customs administration, the refusal to apply quantitative bans and restrictions on the import of goods, as well as provisions establishing basic WTO standards on veterinary, sanitary and phytosanitary measures and technical regulations.

In addition to the standard WTO rules, the agreement contains other obligations that will continue to apply within the EAEU. Commitments are made to ensure a 180-day transition period between the publication and entry into force of technical regulations. According to the documents accompanying the law, this provision "increases the transparency of Iran's trade regime and aligns the regulatory environment with the EAEU, which already operates according to this principle".

The agreement provides for cooperation in various fields, including the extraction, processing and use of minerals, energy efficiency, research and innovation, education, medicine, transport, telecommunications, transport and logistics infrastructure, and transport corridors. The document also establishes a preferential trade regime "for about 87% of the product range of foreign economic activity".

Lawmakers believe that the implementation of the agreement will allow Russian exporters to save around $300 mln annually on customs duties. The agreement is expected to contribute to the further development of trade and economic cooperation with Iran.

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Foreign policy Iran Eurasian Economic Union

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