Iran, India's preferential trade finalized

By  Trend

The negotiations on preferential trade between Iran and India were finalized and only some stages of the agreement have remained which will be operational by next month, Seyyed Mojtaba Mousavian, director general of the Asia-Pacific Department of the Trade Promotion Organization of Iran, said in an interview with IRNA, Trend reports.

He added that according to the talks, 80 to 100 items of goods from each side are subject to tariff reductions.

Preferential trade agreements are agreements between two or more countries in which the tariffs imposed on goods produced in the member-states are lower than the tariffs imposed on goods produced in non-member countries.

Preferential tariffs have a significant effect on reducing the price of goods in the target country. When the customs tariff of a commodity is calculated five percent instead of 10 percent, that commodity becomes more competitive than other goods, therefore, preferential tariffs provide conditions for the presence of goods in other markets.

Mousavian said that in the negotiations with the Indians, the goods that receive preferential tariffs will be specified, and the percentage of discounts will be determined in the final negotiation, recalling that preferential trade is not just beneficial to one side.