WANA (Dec 08) – In the coming days, Iran is set to join the Eurasian Economic Union (EAEU) as an observer member, opening significant opportunities for expanding the country’s trade and international relations.

 

Dmitry Volvach, Russia’s Deputy Minister of Economic Development, recently announced that the EAEU’s deputy prime ministers had approved Iran’s observer membership request. The decision will be finalized by the Supreme Council of the Union in December 2024.

 

This move follows concerted efforts by various Iranian ministries and the economic diplomacy initiatives of Iran’s 13th and 14th governments to enhance trade ties with EAEU member states.

 

Masoud Pezeshkian, Iran’s president, previously noted that this membership would enable Iran to trade with EAEU countries under low or zero tariffs.

 

What is the Eurasian Economic Union?

The Eurasian Economic Union, established in 2015, is an intergovernmental organization aimed at fostering economic integration and removing trade barriers among its members. The union comprises Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan, focusing on cooperation in energy, agriculture, transportation, and investment.

 

With a common market of over 180 million people, the EAEU strives to facilitate free trade and align customs and financial policies across member states.

 

Iran-EAEU Trade: Promising Horizons

Iran’s growing trade interactions with the EAEU highlight the potential of this collaboration. According to EAEU statistics, Iran’s exports to member states increased by 9% in the first nine months of this year, primarily consisting of vegetables, fruits, and nuts. The EAEU’s Minister of Trade has projected that the trade volume between Iran and the union could reach $12 billion in the near future.

 

Russian President Vladimir Putin also welcomed Iran’s observer membership, describing it as a significant step toward strengthening bilateral ties and advancing regional cooperation.

 

An Opportunity to Expand Cooperation

Iran’s observer membership in the EAEU presents a valuable opportunity to diversify the country’s foreign trade and boost non-oil exports. This collaboration can reduce Iran’s dependency on Western economies while enhancing its position in the global economic landscape.

 

By accessing a vast market with lower tariffs, Iranian producers and exporters can increase their international presence. Moreover, this strategic step contributes to reinforcing economic alliances among non-Western countries and promoting multilateralism in the global economic system.

 

Iran’s observer membership in the EAEU marks a strategic milestone, creating historic opportunities for trade growth and lessening dependency on Western economies.

 

With its emphasis on multilateralism and regional cooperation, the EAEU is poised to play a pivotal role in shaping a new global economic order, one in which Iran is an active participant.