The Iranian president has ordered the Ministry of Industry, Mine and Trade (MIMT) to implement the law on Iran’s joining a Free Trade Zone (FTZ) with Eurasia Economic Union (EAEU).
Hassan Rouhani’s order comes after the bill was approved in totality and details by the parliament on 10 June.
The one-article bill was approved by 150 votes in favour during the early Monday session of the parliament. 10 members of parliament voted against, and five abstained.
Now, the MIMT is obliged to to submit yearly reports on how the agreement is being implemented regarding the expansion of Iran’s export destinations and preventing economic losses of the Iranian manufacturers.
Also, the Majlis says the government needs to obtain its green light after five years of the agreement’s implementation to continue the preferential tariffs as well as the products that are subject to them in the agreement.
The agreement has also been approved by all the five member states’ parliaments and was awaiting Iran’s green light.
Bak in May 2017, he Eurasian Economic Union (EAEU), comprised of Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia agreed to create a free trade zone with Iran. Later November that year, Russian President Vladimir Putin, as head of the organisation, ratified the decision.
The decision allows Iran's entrance into the free trade zone during a 3-year trial period and gives it unlimited access to the five countries’ markets.
One of the main features of this deal is that Iranian businesses can export their goods under “very low tariffs” to the Eurasian Union. Citrus such as apple, cultivated abundantly across Iran, will be one of those agricultural products that will make their way to the Union countries benefiting from the low tariffs. Dairy, food, fruit and industrial products will be other items on the list.