Iran and Uzbekistan are set to deepen economic ties, targeting a tenfold increase in bilateral trade through a recently agreed-upon Preferential Trade Agreement (PTA). The deal, outlined during a visit to Tehran by Uzbekistan’s Minister of Trade, Laziz Kudratov, aims to boost annual trade from the current $500mn to $5bn.
Akbar Godari, head of the Iran Trade Promotion Organization’s Central Asia office, confirmed the progress, noting that the PTA would lower tariffs on select Iranian exports, including train wagons, electricity generation turbines, steel, and petrochemical products.
“This agreement lays a foundation for unprecedented economic cooperation, allowing both nations to benefit from reduced tariffs on vital exports,” said Godari.
Iran’s expansion of trade agreements with regional allies comes amid ongoing Western sanctions, which limit its access to traditional markets. Besides its partnership with Uzbekistan, Iran has signed PTA deals with the Eurasian Economic Union (EAEU), Pakistan, and Indonesia, strengthening its regional trade network.
For Uzbekistan, this agreement aligns with its efforts to leverage new east-west and north-south trade corridors. Given its central position in Central Asia, Uzbekistan stands to benefit significantly from increased trade and transit activity through Iran, especially as cargo flow through Iran to Central Asian destinations like Turkmenistan continues to rise.
Beyond economic advantages, Iran and Uzbekistan share strong historical and cultural connections, further facilitating business relations and cooperation between the two countries.
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