On December 23, Member States of
the Eurasian Economic Union (EAEU) together with Iran launched a joint research
on the prospects of concluding the free trade agreement. This was announced in
Tehran by the Minister in charge of Trade of the EEC Andrey Slepnev and the
Minister of Industry, Mines and Trade of Iran Mohamad Reza Nematzade.
The established Joint Research
Group (JRS) will assess the prospects of concluding such an agreement, identify
opportunities for maximizing economic benefits, give specific proposals on its
possible format, the framework of obligations of the Parties and the depth of
cooperation in specific areas.
The Minister in charge of Trade of
the EEC Andrey Slepnev said: "Iran
is a strategic partner for us. The anticipated lifting of international
sanctions will create the preconditions for the formation of the country's new
regional economic growth, while the reintegration of the Islamic Republic into
the global economy will allow increasing cooperation within the framework of
the "Big Eurasia." In particular, there will be
additional prerequisites for the creation of transport corridors in the
directions of India, Pakistan, Iraq, as well as the formation of the
"North-South" Eurasian transport space."
The task of the Joint Working Group
is to give concrete proposals in order to bring trade and economic relations
between Iran and the EAEU Member States to the new level, to offer an agreement
format, which will give the possibility to fully implement the potential of
joint economic development. With this purpose, experts need to analyse in
detail the specifics of conducting business and mutual trade.
The Eurasian Economic Union and
Iran expect a further increase of bilateral trade turnover and diversification
of economic cooperation spheres. The Minister in charge of Trade of the EEC
Andrey Slepnev said: "For the period
from January to October in 2015, the exports of goods from the EAEU Member
States to Iran exceeded USD 1.4 billion, while the imports of goods exceeded
USD 445 million. Member States of the Eurasian Economic Union supply to Iran
the following agricultural goods: wheat, barley, corn, vegetable oils. In addition,
supplies of the following manufactured goods are carried out: rolled steel and
trucks, timber, paper, synthetic fibers. Electricity is also supplied. Imports
from Iran are mainly presented by vegetables, fruits, cement and
petrochemicals. It is obvious that
exports and imports can be more diversified, and the range of goods and
services can be much wider." The total turnover of trade in services
in 2014 between the EEC and Iran amounted to approximately USD 700 million.
During the meeting, the Ministers
also noted that the joint work of the group would make a significant
contribution to the development of relations between the EAEU and Iran.
The decision to establish the Joint
Research Group together with Iran has been adopted by the Council of the
Eurasian Economic Commission on August 21, 2015.
For reference
The
work of the Joint Research Group (JRS) is a preparatory stage for negotiations on
establishing a free trade zone. Within the JRS
framework, experts study the economic structure of countries and the parameters
of foreign and mutual trade, as well as search for areas of mutual concern.
Following the results of work, JRS submits a detailed report containing
conclusions on the feasibility of negotiating on FTA. On the basis of this
report, the Presidents of the EAEU Member States decide on the feasibility of
negotiations.