The Free Trade Zone (FTZ) agreement between five member states of the Eurasian Economic Union (EAEU) and Iran is expected to enter into force this summer, said Armenia’s Economy Minister Tigran Khachatryan during a parliamentary discussion on Thursday, according to the Financial Tribune.
"The agreement on the creation of a free trade zone with Iran has been ratified by all five members of EAEU. We expect Iran to ratify the agreement this summer," the minister was quoted as saying by ARKA News Agency.
Khachatryan added that EAEU and Iran will drop customs duties for a quarter of the commodities manufactured in Iran and EAEU member states.
"This agreement is envisaged for a transitional period and the next stage of deeper cooperation will come when these duties are eliminated on both sides," he said.
The two sides are looking to substantially increase trade, as the two sides signed a three-year provisional agreement on May 17, 2018, for the bloc to welcome Iran into EAEU. The arrangement is the first step in implementing free trade between Iran and the union’s five members. It lowers or abolishes customs duties, setting off a three-year process for a permanent trade agreement.
Late May, Iran's Energy Minister Reza Ardakanian said the bill to allow Tehran’s entrance into a Free Trade Zone with Eurasian Economic Union (EAEU) will be presented to the parliament in the coming days.
“The government has approved the bill on the Free Trade Zone (FTZ) agreement with the Eurasian Economic Union (EAEU) which was later approved by especialised parliamentary commissions and now it has been sent to the parliament’s bureau,” Ardakanian was cited as saying on Sunday by Islamic Republic New Agency (IRNA).
Ardakanian was referring to the bill’s clearance at the Parliament’s National Security and Foreign Policy Commission back in March.