The agreement between Iran and the Eurasian Union is a step beyond economic interests

“Sergei Kozhmyakin” regional issues expert and political analyst of Pravda newspaper in Moscow, in a note that he provided to Fars news agency reporter in Dushanbe, examined the benefits of signing the trade agreement Azad between the Islamic Republic of Iran and the Eurasian Economic Union.

This note states: 2023, which is reaching its final days, was a difficult and complicated year. Due to the escalation of the international situation, existing conflicts continued in some parts of the world and new confrontations emerged in others.

The genocide of the Zionist regime in Palestine with the direct participation of the United States has caused instability throughout the Middle East, including Syria, Iraq and Yemen. The war in Ukraine continues, and there is no clear prospect of a resolution to the civil war in Sudan. Due to the provocative actions of the United States and its allies, the tensions in Taiwan and the South China Sea are also increasing. Formed from the domination of the West, it is being strengthened. This became more prominent during 2023 with a number of events, for example, the full membership of the Islamic Republic of Iran in the Shanghai Cooperation Organization and the decision to expand the “BRICS” group.

A few days ago, another important step was taken. An agreement on the creation of a free trade zone between the Eurasian Economic Union and the Islamic Republic of Iran was signed in St. Petersburg, Russia. The path to reach this important decision was relatively long. In 2019, the preferential trade agreement between the Eurasian Union and Iran came into effect, which included 360 items out of about 12,000 items. Now customs duties will be substantially reduced on 90% of goods. In addition, this agreement foresees the reduction of non-tariff barriers, i.e. simplification of certification, sanitary and phytosanitary measures, customs regulations, etc.

There is no doubt that the signing of this document will expand trade between The member states of the Eurasian Economic Union and Iran will help. Even the previously limited conditions played an important role in increasing trade. For example, if the trade exchange between the two sides was 2.5 billion dollars in 2019, it will reach 6.2 billion dollars at the end of 2022, which indicates an increase of two and a half times. The results of 2023 will probably be even higher, because in the 7 months of this year, the trade between this organization and Iran amounted to 4.3 billion dollars.

Now the conditions are not only for A significant increase is also provided for the multiple growth of mutual trade, and according to experts, this figure can reach 20 billion dollars in the foreseeable future. It is a turning point towards achieving a new level of cooperation that will go beyond the regional framework of the post-Soviet space.

The existing agreements on the creation of free trade zones between Eurasia with Vietnam and Serbia have limitations that are caused by economic and geopolitical reasons, but the situation Iran is seriously different. First of all, Iran borders the Eurasian Economic Union by land (Armenia) and sea (Caspian), and in addition, it has a direct connection with the space of this organization through international transit routes (such as Kazakhstan-Turkmenistan-Iran railway). Facilitates business. Apart from that, the member countries of the Eurasian Economic Union can use Iran’s transportation capacities, including the possibility of direct access to sea ports to transport goods to the Middle East, South Asia, etc.

Secondly, the Republic of Islamic Iran has an advanced diversified economy, a wide consumer market and high innovative capabilities. This potential provides enormous opportunities for the Eurasian Economic Union not only in terms of trade, but also for industrial, scientific and technical cooperation. In the context of current global developments and the imposition of severe sanctions, this can lead to a reduction of pressure on the economies of the Eurasian Union.

Undoubtedly, there are benefits for Iran, because in this way, the Islamic Republic of Iran The other will hit the wall of failed Western sanctions. Iranian products can easily reach the markets of the member countries, and in return, the Eurasian Economic Union will also supply Iran with goods (mainly agricultural) at lower prices, which will lead to solving the social and economic problems caused by Western sanctions.

Of course, the importance of the free trade agreement between the Eurasian Economic Union and Iran It is beyond the discussion of economic interests. This will help strengthen interactions within the emerging multipolar system and make member states stronger and more confident in their fight against Western hegemony. This may also lead to the final formation of the North-South transport corridor, the conclusion of a strategic partnership agreement between Russia and Iran, and other necessary measures. Therefore, the convergence of the Eurasian Economic Union and Iran will bring a new and great geopolitical energy, which will show its fruits in the not too distant future.

End of Message/