Parliament of Kyrgyzstan approves ratification of trade agreement between EAEU and Iran

The Parliament of Kyrgyzstan has reviewed and adopted in the third reading the draft of the Federal Law on the Ratification of the Free Trade Agreement between the Eurasian Economic Union (EAEU) and its member states, on the one hand, and Iran, on the other, Azernews reports via the parliament.

This agreement was signed on December 25, 2023, in St. Petersburg, Russia.

The agreement addresses a wide range of issues, including trade in goods, protection of the domestic market, technical barriers to trade, sanitary and phytosanitary measures, rules of origin, customs administration, dispute resolution, public procurement, sectoral cooperation, and other matters.

Imports from Iran to Kyrgyzstan encompass a variety of products, such as tea, processed fruits and vegetables, dates, nuts, tiles, glassware, chemical products, clothing, and furniture. Conversely, exports from Kyrgyzstan to Iran include beans, cotton fiber, nuts, silkworm cocoons, and other commodities.

According to the document, Iran's average import duty rate on Kyrgyz goods will decrease significantly, from 17 percent to 3 percent. This reduction is expected to result in annual savings of up to $2 million for Kyrgyzstan on import customs duties.

The agreement also enables the initiation of exports from Kyrgyzstan to Iran for goods currently not traded, including unreinforced glass, bags and sacks, mutton and lamb, meat and by-products of cattle, corn, sunflower oil, and barley, benefiting from zero duties.