Russian President Vladimir Putin has signed a law on the ratification of a free trade agreement between the Eurasian Economic Union (EAEU) and Iran. This is reported in the Telegram-channel of the Trade Representation of the Russian Federation in the Islamic Republic of Iran.
Recall, the agreement will replace the temporary agreement in force since May 2018, leading to the formation of a free trade zone between the EAEU and Iran. The document forms the basic rules of trade between the parties, as close as possible to the rules of the World Trade Organisation (WTO), including such as most-favoured-nation treatment, application of protective measures and customs administration, refusal to apply quantitative bans and restrictions on the import of goods, as well as provisions fixing the basic standards of the WTO in terms of veterinary, sanitary and phytosanitary measures, technical regulation.
As PortNews previously reported, the temporary agreement in force since 2018 allowed to increase trade turnover between the EAEU and Iran by 2 times in 4 years – from $2.1 billion in 2019 to $4.1 billion in 2023. The implementation of the new agreement will allow Russian businesses to save about 27 billion rubles a year on duties.
The free trade agreement between the EAEU and Iran was signed in December 2023, supported by the deputies of the Russian State Duma at the end of May 2024. The Federation Council approved the ratification of the agreement on 5 June 2024.
