WANA (Dec 13) – Andrey Slepnev, the Eurasian Economic Union (EAEU) Trade Minister, emphasized the importance of the recently concluded free trade agreement with Iran, calling the country a key southern partner and a critical part of the North-South Corridor.

 

Slepnev noted Iran’s progress in import substitution, technological advancements, and resilience against sanctions. He highlighted that four EAEU members have ratified the free trade agreement, and the bloc aims to finalize the process before the December 2024 summit in St. Petersburg for implementation in early 2025.

 

Shift to Global South Markets

Slepnev revealed a major shift in EAEU trade priorities, with 75% of its trade by late 2024 projected to involve Global South countries. This marks a significant realignment from the EU, whose share of EAEU trade has fallen to 16%, down from over 40% in 2022.

 

China and Regional Growth

China remains the EAEU’s largest trade partner, accounting for one-third of the bloc’s foreign trade. Notably, 95% of transactions with China are settled in local currencies. Trade with Turkey, India, the UAE, and Brazil is also growing, with forecasts predicting trade with Turkey and India will reach $60 billion by the end of 2024.

 

The EAEU plans to sign a free trade deal with Mongolia in December, which could double trade volumes. Additionally, it seeks to strengthen ties with African nations, with Tunisia seeing notable growth.

 

Iran’s trade with the EAEU grew by 11% in the first nine months of 2024. If finalized, the free trade agreement will eliminate tariffs on 87% of Iranian exports to EAEU countries. Iran is also set to gain observer status in the bloc during the upcoming January 2025 summit, offering expanded market access for its producers and traders.