Avash News: In today’s world, membership in regional and international economic and political treaties is an important tool used by countries to expand their ties with neighbors and other strategic partners.
The trade agreement between Iran and the Eurasian Economic Union — negotiations for which began several years ago and have now entered a more serious phase — along with agreements such as the Shanghai Cooperation Organization, is considered one of the successful regional cooperation initiatives. This agreement has strengthened ties between Iran and the five member states of the union, although there remains significant potential for further cooperation.
Based on the latest developments, the free trade agreement has now been fully implemented between Iran and the Eurasian Economic Union. The agreement aims to raise the trade volume between Iran and the member states to at least $10 billion.
Before this, cooperation was conducted within a general trade agreement framework, but the implementation of the free trade agreement marks an important step toward enhancing mutual ties.
Under this agreement, about 87 percent of the goods exchanged between Iran and the five Eurasian Economic Union members (Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan) are now traded with zero tariffs. Officials at the Trade Promotion Organization have described this measure as a fundamental step toward facilitating exports, reducing costs, and increasing the competitiveness of Iranian products in the union’s markets.
Moreover, published data shows that Iran’s exports to Eurasia saw a 22-percent increase in value during the first three months of the current Iranian year (starting March 21, 2025), reaching $532 million compared to the same period last year.
According to the latest figures, Iran’s exports to Eurasia also grew by 16 percent in the first six months of the current Iranian year, concurrent with the implementation of the free trade agreement.
Despite this growth, studies indicate that Iran’s trade with Eurasia is largely limited to two countries — Russia and Armenia — while the other members have only a marginal share in these exchanges.
Experts believe that genuine expansion of trade with the union’s member states requires reducing overall production costs, improving the supply chain, and creating sustainable comparative advantages.
From the beginning of formal cooperation between Iran and Eurasia about six years ago until May of this year, the total volume of trade between the two sides has grown by 3.3 percent.
However, several obstacles — including regulatory instability, improper currency policies such as multi-rate exchange systems, mandatory repatriation of export earnings, and the denial of legal benefits to exporters under the pretext of non-compliance with currency commitments — have prevented a greater leap in Iran-Eurasia trade.
Experts emphasize that the government can hold regular and well-planned meetings in cooperation with Iran’s Chamber of Commerce and the joint chambers of commerce of Iran–Armenia, Iran–Kazakhstan, Iran–Russia, and Iran–Uzbekistan, so that the outcomes of this agreement can become more evident sooner.
Additionally, the exchange of trade delegations between the two sides can play an important role in enhancing and accelerating trade relations.
