NUR-SULTAN / ex ASTANA (KazInform) — Kazakhstan’s Deputy Minister of National Economy, Serik Zhumangarin, said today that Iran will reduce import duties on 864 goods imported from his country.

“The Intergovernmental Agreement on the Establishment of a Free Trade Area between the member states of the Eurasian Economic Union (EEU) and the Islamic Republic of Iran was signed on 17 May 2018 in Astana. The decision to start negotiations on the agreement was taken by the leaders of the EEU states in 2016. At the same time, the Head of State presented the initiative to create a free trade area with Iran in 2014 at the summit of the Caspian Sea littoral states. The implementation of this agreement will increase exports of domestic products by promoting Iran’s potential market of more than 80 mln people. In general, such an agreement is one of the ways to export to the world market”, the deputy minister said at the enlarged meeting of the Committee on Economic Policy, Innovative Development and Entrepreneurship of the Senate of the Republic of Kazakhstan.

According to him, the volume of mutual trade between Kazakhstan and Iran in 2018 reached $516.3 mln. Exports to Iran amounted to $426.7 mln while imports reached $89.5 mln. Among Kazakhstan’s main products, barley represents 272 mln tons, rolled steel products 87 mln, seeds 17 mln and sheep up to $11.6 mln.

Under this agreement, which is being examined by the Senate, the Iranian side is reducing import duties for 864 goods, including 262 agricultural and 602 industrial products. Beef and sheep herds will be offered on the Iranian market (from 26% downed to 5-10%), as well as legumes (from 55% downed to 5-10%), vegetable oils (from 20% downed to 10), macaroni and confectionery products (from 55 downed to 14-20%), rolled steel and rail (from 20% downed to 15%).

It will be possible to reduce rates from 5 to 4%. “These currently exported goods represent $292 mln, or more than 54% of Kazakhstan’s exports to Iran. The EEA member countries have reduced import duties on 502 products, including 126 agricultural and 376 industrial products”, said Mr. Zhumangarin.