Fourteen percent growth in trade between Iran and the Eurasian Union

Fourteen percent growth in trade between Iran and the Eurasian Union
  • 2020-07-08
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Deputy Minister of Industry: Trade between Iran and the Eurasian Union has grown by 14% since the beginning of the implementation of the interim agreement to establish a free trade zone by the end of June.

According to the Iran International Stone Fair, the first meeting of the Joint Working Group on the Interim Agreement on the Establishment of a Free Trade Zone between Iran and the Eurasian Economic Union via video conference ) And the participation of Kazem Jalali, Iranian Ambassador to Moscow and representatives of the Eurasian Economic Union and relevant agencies from Iran, was held on July 7, 2010 at the Trade Development Organization of Iran.

In this video conference, the joint conference of the representatives of the Islamic Republic of Iran and the Eurasian Economic Union discussed the implementation of the interim agreement on the establishment of a free trade zone between Iran and the Eurasian Economic Union and member states and trade development strategies between Iran and Eurasian Union member states.

At the meeting, Kazem Jalali, Iran's ambassador to Moscow, noted that the expansion of economic relations with neighboring countries and the resolution of regional disputes is one of the policies of the Islamic Republic of Iran. Help Iran and its neighbors.

Referring to the Iranian government's emphasis on the importance of economic relations, he said: "After the agreement was approved, consultations and exchanges were held in order to better implement the agreement between the two sides."

According to Jalali, we are now pleased to see the first meeting with the high officials of the country and we hope to reach the agreements agreed by the parties in the agreement.

He continued: "With the implementation of the agreement and the efforts of the relevant authorities, the volume of trade between the EU countries and Iran has reached 2 billion four hundred and seventeen million dollars, of which seventy-two percent is the share of imports to EU member states and twenty-eight percent is exports." Iran belongs to these countries. These statistics show that the cooperation between Iran and Eurasia has started well.

Facilitate cooperation in the field of food and agricultural products

"At this meeting, the key officials of the Eurasian Union are present," said Slupenf, the Eurasian Union's Minister of Economy. "Undoubtedly, you have enough information about the current and trade situation, which is not very good given the current situation."

"Mutual trade has been declining due to the outbreak of the corona virus," he said. "We now have a positive attitude towards trade in food and agriculture, and we see that our trade with Iran is growing." .

"The export of sunflower and wheat oil from Iran to the Eurasian Union countries has grown and shows that we can have good cooperation in these areas," said the Eurasian Union's Minister of Economy.

According to him, there is no doubt that the issue of Iran's trade with the countries of the Eurasian Union is facing obstacles and obstacles that have made the situation difficult by discussing the outbreak of the coronavirus.

In line with the development of cooperation between Iran and the Eurasian Union, Slavenov said: "We are solving the problems of the origin of goods in line with this agreement." In this regard, we have provided an explanation to the colleagues of the Eurasian Union and we are waiting for the comments of our colleagues.

He stressed: "We hope that this cooperation has found its place and we are witnessing the development of cooperation between Iran and the Eurasian Union."

Investigating the problems of the Iran-Eurasian Union agreement

Hamid Zadboom, Deputy Minister and Head of the Trade Development Organization of Iran, also stated in this meeting: Our colleagues from the Ministry of Foreign Affairs, Ministry of Energy, Central Bank of Iran, Iranian Standards Organization, Ministry of Jihad Agriculture, Ministry of Roads and Urban Development, Ministry of Health Islamic Iran, the Investment Organization, the Vice President for Legal Affairs and the Iranian Chamber of Commerce are represented by the private sector.

He said: "In the difficult conditions in which the world, especially Iran, is affected by the wrong policies of some countries, this relationship is gratifying."

The Deputy Minister of Industry, Mines and Trade continued: "Iran has a high determination to continue this agreement and calls for the development of mutual cooperation from the Eurasian Union."

"Although trade has declined in recent months due to the outbreak of the coronavirus and the lack of truck traffic and the closure of transit and passenger borders, trade relations between Iran and the Eurasian Union have been strained since the beginning of this implementation," he said. By the end of June, the agreement had grown by 14 percent.

According to Zadboom, the export of white rice, soybeans and sunflower seeds was restricted by the Eurasian Union due to the Corona outbreak, which was supposed to be lifted by June 30, but we are still unaware of these restrictions.

He pointed to the need to exchange trade statistics between the two sides and said: "We request the presentation of these statistics based on the ten-digit HS codes of that union and we are ready to provide our statistics to the Eurasian Union on a monthly basis based on Iran's eight-digit code." Let's put.

The head of Iran's Trade Development Organization stated: "Since the beginning of the agreement, Iran has implemented it by notifying the commodity lists to the customs; However, the presentation of the certificate of origin and seal was delayed by both parties; But now the cases have been fully announced by the parties. The communication authorities between the two parties have been identified and we request that we be notified if there are any changes in the authorities announced by Eurasia, and we will do the same.

According to him, there are some requirements related to the export and import between the parties in Persian and Russian languages, which creates problems, and efforts should be made to publish these documents in English as well.

Zadboom also added that amendments to technical or health laws, such as the Eurasian Union's veterinary regulations, should be notified to Iran in accordance with Article 12.

At the ceremony, Hossein Kakhki, Iran's customs representative, said that Iran has had a close relationship with the Eurasian Customs Department since the beginning of the agreement. "Coordinated information has been provided on electronic exchange, which we hope will be operational soon," he said.

We could not reopen the borders in March

Andrei Slpenf, Minister of Economy of the Eurasian Union, stated in line with the health protocols: The meeting for determining the health protocols has been formed and the determined protocols have been approved by both parties.

He continued: "The activities of these meetings were carried out by the Eurasian Economic Commission and the head of the department as well as our experts were present at this meeting, which was scheduled to reopen the borders by March." But we couldn't do that because of the spread of the coronavirus.

The Minister of Economy of the Eurasian Union stated: "In this meeting, we discussed with Iran to expand economic activities, and we are waiting for the announcement of the colleagues' opinion, and we will announce it as soon as the result reaches us."

Noting that we are ready for constructive cooperation with our Iranian colleagues, he said: "Iranian banks have deep and many problems in paying, and now we need to communicate with the Central Bank of Iran;" We request separate meetings on banking issues.

The need to form a financial working group to solve problems

In this regard, Hamid Zadboom, head of the Trade Development Organization of Iran, emphasized: "Some issues should be examined at the expert level, and in my opinion, the trade working group is a good space for further research on issues."

He continued: "Regarding the problems of confectionery and chocolate producers and solvent materials, we are ready to negotiate with the relevant agencies."

Zadboom said: "We are ready to cooperate and sign any agreement on the exchange of electronic customs information."

He added: "One of the main problems is the settlement of banking transactions, in which a working group should be established, and its proposal has already been announced to the union by Iran."

Amin Tarfeh, a spokesman for the Ministry of Roads and Urban Development, also spoke about the north and south corridors and ports, which could help with trade. "There are no restrictions," he said. The port of Chabahar, one of Iran's most important ports, is cooperating with countries in the region and offering 90% discounts on port costs.

He continued: Chabahar-Zahedan railway is under construction and will be connected to the railway network by the end of this year. Now, Shahid Rajaei port is connected to the railway network and is ready to transfer goods to Amirabad, Incheh Borun and Rasht ports.

The representative of the Ministry of Roads and Urban Development said that one of the most important issues for trade relations with the Eurasian Union countries is the activation of transportation routes in the Caspian Sea and said: Let's get to the classification.

Also in this meeting, Mohammad Reza Khataei, representative of the Central Bank of Iran, referring to the sending of protocols for financial exchanges to the Eurasian Union and the lack of response from the union, said: Financial channel and banking system is the main condition for trade and Iran's banking system is sufficient experience In this regard.

He stressed that the Eurasian Union Central Bank should play a more effective role in introducing a specific bank to join the banking circle. We have now announced our readiness and the agreement of the Central Bank of the Russian Federation to exchange foreign currency with Russia, and we have been working with Russia for more than ten years.

In the end, Khatai emphasized: The Central Bank of Iran is ready to negotiate, consult and provide any fruitful experience to the Eurasian Union to connect its banks to us, and we are waiting for the message of the Friendship and Neighborhood Union.

We call for the development of cooperation on investment, transportation, free trade zones, standards, trade and the private sector, cleanliness and banking relations with Eurasia.

Hamid Zadboom, head of the Trade Development Organization of Iran, also said about the problems of implementing the agreement: "The sample of the certificate of origin has not been signed in time and now it seems that this problem has been solved, but we expect that based on paragraph six of Article 15, traders can complete their documents Use discounted months.

He informed about the lack of knowledge of the merchants of the two sides about their capabilities and said: the necessary database should be prepared to be provided to the merchants through the chambers of commerce. Visa facilitation for Iranians by Eurasian countries; Proposals for the establishment of working groups, including the sub-working group on banking cooperation between Iran and the Eurasian Union, holding specialized meetings on standards with the Standard Organization of Iran and the Union, are among the items we have requested.

Zadboom continued: concluding an agreement to encourage and support mutual investment between Iran and Eurasia, convening participation meetings in the field of transportation between Iran and Eurasia or creating a working group in this field, forming a clearing working group between Iran and Eurasia to buy goods, working group free zones Iran and Eurasia are other Iranian demands.

We follow international standard rules

"The Eurasian Union is working to connect with international institutions, and we have all the tools and facilities to do that," said Maxudian, a representative of the Eurasian Standards Department.

He continued: "We have created rules and conditions for cooperation with third countries (countries other than the Eurasian Union) so that we can work with them equally." The terms of signing contracts and agreements with third countries are specified.

He added: "In this regard, the third country must have an institution that can implement international documents and standards." It must set standards and control conditions under international law, and the Eurasian Union can reduce some barriers and restrictions under international treaties and agreements.

According to him, in this regard, we will present the rules and regulations separately, and we will determine an institution to which both parties will submit documents and documents, and both parties will accept this institution. Given this, our view is that we should review the standards and regulations in different departments in a specialized way and have a working group in this field to regulate its technical discussions.

Determining the timing of the start of negotiations for a free trade agreement

Hamid Zadboom pointed out that before the anniversary of the implementation of the agreement, it is necessary to start free trade negotiations, and proposed holding a joint meeting to review the main lines of these negotiations for October this year. The Eurasian side welcomed the offer and offered comments on the talks for further consideration.

In the end, the two sides expressed satisfaction with the achievements of the meeting and considered it very comprehensive and fruitful, and expressed hope that future negotiations could be a big step in achieving the development of trade cooperation between the two sides.

It should be noted that the interim agreement to establish a free trade zone between Iran and the Eurasian Economic Union was signed after about two years of negotiations in May 2016 between Iran and the Eurasian Economic Union, including five members from Russia, Kazakhstan, Kyrgyzstan, Armenia and Belarus. November was implemented last year. The agreement is set to become a free trade agreement after three years of negotiations between the parties.

The Joint Working Group, the first meeting of which was held on July 17, is responsible for overseeing the implementation of the agreement, examining ways to further expand trade relations between the parties, establishing sub-institutions and negotiating future negotiations to conclude a free trade agreement. Meetings of this working group are held annually.