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What goods Kazakhstan will export to Iran at reduced tariffs

25 April 2019 12:59

NUR-SULTAN. KAZINFORM - The Senate of the Parliament of Kazakhstan has passed a bill improving the terms of mutual trade between Kazakhstan, the Eurasian Economic Union, and Iran, Kazinform correspondent reports.

The bill is titled as "On Ratification of the Interim Agreement leading to the Establishment of Free Trade Zone between the Eurasian Economic Union and its Member States, on the One Part, and the Islamic Republic of Iran, on the Other Part."

"In accordance with the Agreement, Iran grants rundown in import duties on 864 products. To the Iranian market, we will be able to export, at reduced tariffs, such products as beef and lamb, legumes, vegetable oils, pasta and confectionery, rolled steel, rails, batteries, rebars, pipes, to name but a few," Ruslan Dalenov, Minister of National Economy, told the Senate plenary session about the benefits of the Agreement.

According to him, these goods presently account for more than half of Kazakhstan's current exports. He also said that in 2018, the value of mutual trade with Iran reached $516.3 million, of which 82.6% was exports to Iran. The major export products are barley, rolled steel, rapeseed, and lamb.

"The countries of the Eurasian Economic Union will reduce import duties on 502 items of goods. These are pistachios, dates, figs, raisins, shrimps, confectionary, dishes, detergents, carpets, plastic products," the minister added.

The agreement will enter into force 60 days after the ratification procedures are completed. The duration of the agreement is 3 years.

"Within a year after ratification, the parties will begin negotiations regarding Permanent Agreement on Free Trade Zone. The provisions of the Interim Agreement fully conform to the norms of the World Trade Organization. The implementation of the bill will not require the allocation of national budget funds and will not entail any negative socio-economic or legal outcomes," Dalenov assured the MPs.