Kyrgyzstan exports beans, cotton fiber, nuts, silkworm cocoons and other goods to Iran. In December 2023, the EAEU and Iran signed a free trade agreement, which could save Kyrgyzstan up to $2 million annually on import duties.
The average rate of Iran’s import customs duty on Kyrgyz goods will decrease from 17 percent to 3 percent.
Domestic procedures are now being carried out for the agreement to enter into force. The Committee on International Affairs, Defense, Security and Migration of the Parliament approved its ratification.
Considering the balance of positive effects for the EAEU and Iran, the following points can be highlighted:
- In trade with Iran, EAEU countries get preferential access to 88 percent of the product range of foreign economic activity;
- In trade with the EAEU, Iran gets preferential access to 87 percent of the product range;
- Suppliers from the EAEU countries, when supplying products to the Iranian market, will be able to annually save up to $380 million on the payment of import customs duties;
- Iranian suppliers, when supplying products to the EAEU market, will be able to annually save up to $50 million on the payment of import customs duties.
The background statement to the bill states that the EAEU counter concessions to the Iranian side are provided in relation to sensitive agricultural commodity items with the possibility of applying tariff quotas and seasonal zeroing.
Imports from Iran to Kyrgyzstan include various products — tea, processed vegetables and fruits, dates, nuts, tiles, glass products, chemical products, clothing, furniture and much more.
