The Eurasian Economic Union (EAEU) and Iran have signed a free trade agreement that will boost economic ties between the two regions. The deal, which was signed in May 2018, aims to increase bilateral trade and investment, and strengthen political and economic cooperation.
The EAEU is a customs union that includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. It has a combined population of over 183 million people and a GDP of $4 trillion. Iran, on the other hand, has a population of over 83 million people and a GDP of $440 billion.
The EAEU-Iran free trade agreement (FTA) covers a wide range of goods, including agricultural products, food, machinery, and textiles. It will eliminate most tariffs on traded goods, making it easier and cheaper for businesses to import and export goods between the two regions. The FTA is expected to increase trade between the EAEU and Iran by up to $10 billion over the next few years.
The agreement also includes provisions for cooperation in other areas, such as energy, transport, and technology. This will provide opportunities for businesses to collaborate on joint projects and expand their operations in new markets.
The EAEU-Iran FTA is a significant step for both regions, as it will promote economic growth and create new opportunities for businesses. It will also reduce trade barriers and increase competition, which will benefit consumers in both regions.
However, there are some risks associated with the agreement. One concern is that it may undermine the existing economic ties between Iran and its traditional trading partners, such as China and India. Additionally, the FTA may face challenges from other countries that are not part of the EAEU, such as the United States, which has imposed sanctions on Iran.
Overall, the EAEU-Iran free trade agreement is a positive development for both regions. It will promote economic cooperation and create new opportunities for businesses to expand their operations. However, it is important to monitor the implementation of the agreement and address any potential risks that may arise.