Kyrgyzstan aims to save up to $2 mn annually following a reduction in customs duties on exports to Iran. This change comes as a result of a free trade agreement signed between the Eurasian Economic Union (EAEU) and Iran in December 2023. The average import customs duty rate imposed by Iran on Kyrgyz goods will decrease from 17% to 3%. This reduction applies to exports such as beans, cotton fibre, nuts, silkworm cocoons, and other goods.
The agreement is currently undergoing domestic procedures for ratification. The Committee on International Affairs, Defense, Security, and Migration of the Kyrgyz Parliament has endorsed its ratification.
The agreement offers significant advantages for both the EAEU and Iran:
- EAEU countries gain preferential access to 88% of the product range in their trade with Iran.
- Iran gains preferential access to 87% of the product range in its trade with the EAEU.
- EAEU suppliers will save up to $380mn annually on import customs duties when exporting to Iran.
- Iranian suppliers will save up to $50mn annually on import customs duties when exporting to the EAEU.
The bill's background statement mentions that the EAEU has made concessions to Iran on sensitive agricultural commodities, with provisions for applying tariff quotas and seasonal tariff reductions.
Kyrgyzstan imports various products from Iran, including tea, processed vegetables and fruits, dates, nuts, tiles, glass products, chemical products, clothing, furniture, and more.
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