Armenian Government Approves EAEU-Iran Free Trade Agreement

During its Cabinet meeting on Thursday, the Armenian government greenlit the signing of the agreement on free trade between the Eurasian Economic Union (EAEU) and Iran.

The primary objectives outlined in this agreement include:

• Using the regulatory framework of the Interim Agreement within the free trade deal as a foundation for negotiations aimed at substantial enhancement of the regulatory environment.

• Ensuring unfettered access to the Iranian market for a broad range of products, while ensuring that access conditions outlined in the Interim Agreement remain unchanged should negotiations on eliminating import duties fail.

Regarding agricultural products, the proposals presented by the Armenian side chiefly focus on items of primary interest for Armenia's export, constituting a significant portion of exports from Armenia to Iran. These include mineral and carbonated waters, non-alcoholic beverages, chocolate, confectionery, tobacco, and mutton, all of which will be subject to zero import duties in Iran.

As for industrial products, the proposals submitted by Armenia primarily encompass items of significant interest for Armenia's export, also making up a substantial portion of Armenian exports to Iran. These products include mineral raw materials such as copper and zinc ore, molybdenum ore, silver items, copper anodes, steam generators, electronic cigarettes, thermostats, etc. Access to the Iranian market will see liberalization for electricity and used batteries, while customs duties for importing jewelry and medicines to Iran will be reduced.

Concerning certain agricultural products critical to Armenia's economy, it has been suggested to maintain and implement seasonal tariff quotas for imports into the EAEU territory. This includes pepper, eggplant, watermelon, melon, as well as tariff quotas for plastic products in the industry sector.