Azer News | 7 March 2017

EAEU-Iran free trade preparation deal signed

By Kamila Aliyeva

Members of the Eurasian Economic Union’s (EAEU) prime ministerial council signed a directive on March 7, ordering preparations for a temporary agreement on forming an EAEU-Iran free trade zone, Sputnik International reported.

The Eurasian Intergovernmental Council members additionally signed a directive on the state of mutual trade among EAEU members in 2015-2016.

Another directive orders to identify areas of the economy with integration potential and steps to implement it.

Among other new orders issued in Kyrgyzstan, the council attendees signed instructions to lay the groundwork for the implementation of the integration community’s digital agenda by 2025.

The signing of a full format deal on the free trade area between the member states of the EAEU and Iran will contribute to GDP growth in all EAEU member states and boosting trade and economic relations, according to the Eurasian Economic Commission.

“According to the results of the EEC econometric analysis, conducted within the framework of the joint research with Iran on the expediency of free trade zone establishment, a sufficient potential of GDP growth for all EAEU member states was deduced (plus $27 million for Armenia, $78.6 million for Belarus, $508.6 million for Kazakhstan, $12 million for Kyrgyzstan, $1.3 billion for Russia),” the commission said in a statement in late-December.

The prognosis was based on the scenario of the EAEU adopting full format of FTA with Iran, but the transition to such type of agreement can take several years.

The Eurasian Economic Union is an economic union of states located primarily in northern Eurasia. Functioning since 2015, the EAEU is a Russia-initiated regional political and economic bloc that aims to streamline the flow of goods and services between its member states: Russia, Armenia, Belarus Kazakhstan and Kyrgyzstan.