Kyrgyzstan is ready to supply honey, beans, dried fruits
As previously reported by Business Eurasia, the Free Trade Agreement between the EAEU and Iran (FTA) was signed on December 25, 2023, and entered into force on May 15, 2025. The first document on trade, which formed the basis of the FTA, was the Interim Agreement of May 17, 2018.
An important difference of the Agreement was the creation of a Joint Committee, which considers the application of the FTA, and potential opportunities for the further development of trade relations between Iran and the EAEU.
- The Agreement qualitatively improves tariff concessions compared to the Interim Agreement and creates unique conditions for access to the Iranian market for EAEU producers. Goods recognized as originating from the Union member states will be able to receive tariff preferences in the form of zero or reduced rates of import customs duties in Iran. The agreement enshrines the mutual obligations of the EAEU and Iran on preferential access for almost 90% of the entire product range, — the editorial board was informed in the trade block of the Eurasian Economic Commission.
The average rate of import customs duty on goods supplied from the EAEU to Iran will decrease from 20% to 4.5%. When supplying products to the Iranian market, EAEU businesses will be able to save up to $380 million annually on import customs duties. In turn, Iran, supplying products to the EAEU market, will be able to save up to $50 million.
— Traditionally, the economy of the EAEU member states is export-oriented, — the Eurasian Economic Commission was informed. — In this regard, it can be expected that duty-free access will allow increasing the export of a large number of goods to Iran. This will affect such products and crops as grains - wheat, barley, corn; meat products - lamb, beef, finished meat products and other types of meat; dried vegetables - lentils, beans; ice cream, cigarettes, chocolate and confectionery, etc.
The agreement also improved the conditions of access in the industrial group of goods. They relate to the rolled pipes and metal structures, lumber, paper, fertilizers, polymers, medicines. A significant list includes ships, bulldozers, aircraft, grain harvesters, engines, boilers, concrete mixer trucks, fire trucks, drilling rigs, quarry trucks, railway locomotives, railway containers, railway track equipment, steam boilers, poultry equipment, refrigerators, etc.
— There are also reciprocal concessions from the EAEU to the Iranian side, — the EEC notes. — This concerns the most sensitive commodity positions in the field of agriculture, for which tariff quotas and seasonal zeroing of quotas are provided. Thus, Iranian supplies of potatoes, tomatoes, cucumbers, apples, cabbage, beets, carrots and canned tomatoes will be limited within the tariff quotas, which allow regulating import volumes to proportionally meet the needs of the EAEU domestic market.
Iranian eggplants, peppers, melons and watermelons will be imported duty-free on those days when production within the EAEU is not able to fully satisfy consumer demand for these goods. In addition, the EAEU will maintain tariff protection for some key sensitive goods. These include beef and poultry meat, dairy products, sugar, alcohol, cigarettes, baby food, honey, polymers and other petrochemical products, herbicides, packaging bags, railway cars, tractors, cars and trucks.
— The preferential trade regime will cover 98.6% of supplies to Iran from Armenia, 96.4% of supplies from Belarus, 99.9% of supplies from Kazakhstan, 94% of supplies from Kyrgyzstan, 93.7% of supplies from Russia, — the trade bloc specifically emphasizes. — In addition to the liberalization of the foreign trade regime, the Agreement provides for other provisions that significantly increase the predictability and transparency of mutual trade conditions.
Additionally, the Agreement establishes unified approaches to the application of customs administration measures and determining the customs value of supplied goods. The approaches are based on international standards, in particular, the World Trade Organization (WTO). Mechanisms for establishing closer cooperation between the customs authorities of the Parties are also provided.
With respect to all traded goods, the obligations to apply basic requirements similar to those established within the WTO apply in full, in terms of non-application of unjustified quantitative restrictions (prohibitions), technical barriers to trade (TBT), sanitary, veterinary-sanitary and quarantine phytosanitary measures (SPS).
— Iran is not a WTO member, — follows from the explanation. — Therefore, the provisions of the Agreement, which are based on WTO norms, provide all EAEU member states with legal guarantees of non-discrimination and provision of favorable trade conditions.
A wide range of areas of interaction is also included in the scope of the chapter "Sectoral Cooperation" of the Agreement. The section provides, among other things, for research, innovation, small and medium-sized enterprises, energy, education, healthcare, the environment, telecommunications, construction, the automotive industry, and the activities of special economic zones.
— It is also worth noting that this list is not closed. By mutual agreement, the EAEU and Iran can hold consultations on the development of interaction in other areas of mutual interest. The Agreement is new opportunities in the field of transport interaction and the development of transit potential, primarily in the context of the North-South corridor. The maximum effect from transport cooperation between the countries can be achieved through a comprehensive approach, which, in addition to the direct development of transport infrastructure, includes effective cargo filling of routes, digitalization of freight transportation, and the removal of trade and transport barriers, the EEC emphasized.
In addition to trade liberalization, which will contribute to the effective cargo filling of routes, the Agreement creates new platforms and formats for industry cooperation, including transport.
- A specific agenda for dialogue with Iran will be formed and supplemented taking into account the proposals of the EAEU member states and, of course, Iranian partners. But already now, issues of developing logistics routes in order to increase the EAEU-Iran trade turnover are being discussed with the Iranian side. Iran is actively involved in the development and use of the Solyanka port in the Astrakhan region, which allows for multimodal transportation along the North-South ITC. The possibility of building an agro-terminal in the Serakhs Special Economic Zone, which is necessary for the accumulation and storage of large quantities of agricultural goods, is being discussed, the Eurasian Economic Commission noted.
Agriculture and processed products are priority export areas for the EAEU member states. The Kyrgyz Chamber of Commerce and Industry of Business Eurasia explained that they are primarily interested in the export of dried fruits, honey and beans. At the same time, imports from Iran will allow saturating domestic markets with affordable and high-quality medicines, building materials and equipment.
— There are several promising areas of cooperation with the Islamic Republic of Iran for us, — the Analytical Department of the CCI of the Kyrgyz Republic noted. — The agro-industrial complex is interested in the export of environmentally friendly Kyrgyz products. This is honey, beans, nuts, dried fruits, and great potential for creating joint ventures for processing. There is potential for light industry and textiles, and joint production of clothing with localization in Kyrgyzstan.
In terms of investment attractiveness, the Chamber of Commerce and Industry recommends that Iranian investors take advantage of the advantages provided by geography and national legislation.
- The Kyrgyz side is interested in importing affordable and high-quality medicines, building materials, equipment, transferring modern technologies in the fields of medicine and education, implementing joint research and educational initiatives. The partnership between Kyrgyzstan and Iran is a multi-level platform for the development of science, industry, humanitarian ties and mutual investments. Thanks to the free trade agreement and the use of common logistics corridors, the parties have the opportunity to build a sustainable, long-term model of mutually beneficial cooperation, - the Chamber of Commerce and Industry of Kyrgyzstan emphasized.
Reference from "Business Eurasia".
According to the results of the completed Iranian calendar year (March 19, 2025), Iran's exports to the EAEU countries amounted to more than $2.0 billion, which is 20% more than in the previous period. Iran's imports from the EAEU reached $1.51 billion, demonstrating a 20% decrease. In Iran's foreign trade turnover with the EAEU countries, the shares are distributed as follows: Russia - 80%, Armenia - 10%, Kazakhstan - 8.7%, Belarus - 0.6%, Kyrgyzstan - 0.5%. In 2024, Kyrgyzstan's exports to Iran amounted to $18.3 million and decreased by 28% compared to 2023. Imports from Iran to Kyrgyzstan amounted to $40.2 million and remained at the level of the previous year.
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