New Horizons: Iran and EEU Strike Historic Free Trade Deal

The Eurasian Economic Union (EEU) and Iran have implemented a free trade deal enhancing trade across sectors like agriculture and metals. Facilitating a closer Russia-Iran partnership, the deal reduces tariffs significantly, boosting bilateral trade to $6 billion, with substantial benefits for Russian exporters.

A landmark free trade agreement between the Eurasian Economic Union (EEU) and Iran has come into effect, signaling a new era for trade between the nations. The pact, effective from Thursday, caters to a range of sectors from agriculture to metals.

The EEU, spearheaded by Russia and including Kazakhstan, Belarus, Armenia, and Kyrgyzstan, offers a significant economic bloc. While collaborations between Russia and Iran have strengthened, marked by a trade increase of 16% last year, this deal is set to further bolster economic ties.

With a 20-year strategic partnership agreement signed in January, the reduction in tariffs is remarkable. Iran's current tariff of 16.7% on Russian goods will drop to 5.2%, potentially saving Russian exporters $300 million annually. Expectations are high, with projections indicating that bilateral trade could reach $6 billion.

(With inputs from agencies.)