Iranian president signs agreement on free trade zone with EAEU

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Iranian president Hassan Rouhani seems keen to kick-start trade with the nations of the Eurasian Economic Union.

Iranian president Hassan Rouhani has given the go-ahead for his Ministry of Industry, Mining and Trade to begin implementing the temporary free trade zone agreement with the Eurasian Economic Union (EAEU), Trend cites TASS as saying.

The EAEU and Iran signed a temporary agreement in May 2018 that was aimed at boosting trade between their nations through relaxed customs regulations, with Iran's parliament ratifying the document in June this year.

It contains provisions relating to preferential tax regulation for imports and exports, as well as on compiling a list of goods eligible for reduced customs duties.

This will lay the foundations for a permanent trade agreement that it is hoped could come into effect within the next three years.

Iran and the EAEU negotiated for 18 months on the creation of this new free trade zone, with the former perhaps hoping it will provide essential business contacts in the face of continuing trade conflicts with the US.

The EAEU is comprised of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, all states located primarily in northern Eurasia.