Today, the free trade agreement between the Eurasian Economic Union (EAEU) and Iran marks a notable shift in tariff policy for many industrial goods, though passenger cars remain outside the list of products with liberalized import duties. This outcome was confirmed by a source within the Eurasian Economic Commission (EEC) shared with socialbites.ca. The essence of the new pact is to reduce barriers on a broad spectrum of industrial goods, while preserving protection for the most sensitive sectors, among them passenger cars. This selective liberalization reflects a careful balance between expanding trade and safeguarding domestic automotive industries, as explained by the EEC liaison to socialbites.ca.
The formal signing took place in Saint Petersburg, where representatives from all five EAEU member states formalized a comprehensive free trade agreement with Iran. The ceremony, reported to have moved forward after earlier interim arrangements that have governed relations since 2019, signals a transition toward a more stable and predictable trading framework. The parties anticipate that the agreement will drive a substantial increase in the cross-border flow of both food products and manufactured goods, aiming for a tripling of trade turnover to the order of 18–20 billion dollars within five to seven years, as noted by observers and officials involved in the negotiations.
Beyond tariff reductions, the agreement is expected to support localization efforts by lowering taxes on components and inputs used in regional production. This approach is intended to incentivize local manufacturing, improve supply chain resilience, and expand domestic value creation across the EAEU economies. The union comprises five countries: Russia, Belarus, Armenia, Kazakhstan, and Kyrgyzstan, each contributing to a broader strategy of regional integration and economic diversification, as described by policymakers involved in the talks and subsequent analyses from the EEC.
Earlier statements from Russian leadership highlighted assurances of duty-free access for EAEU goods into the Iranian market, underscoring political support for deeper economic ties between the two blocs. These remarks align with the broader objective of expanding market access and reducing transaction costs for businesses operating within the EAEU and Iran, a goal repeatedly emphasized by officials during and after the negotiation process, according to the EEC and other official sources.