Kyrgyzstan has been exporting beans, cotton fiber, nuts, silkworm cocoons, and other goods to Iran. In December 2023, the Eurasian Economic Union (EAEU) and Iran signed a free trade agreement, which could result in annual savings of up to $2 million for Kyrgyzstan in import customs duties.
The average import customs duty rate of Iran on Kyrgyz goods will decrease from 17 to 3 percent. Currently, domestic procedures are being carried out for the agreement to come into force. The ratification of the agreement was approved by the Committee of the Jogorku Kenesh on International Affairs, Defense, Security, and Migration.
Considering the positive effects for the EAEU and Iran, the following points can be highlighted:
- Countries of the EAEU gain preferential access to 88 percent of the commodity nomenclature in foreign economic activity in trade with Iran.
- Iran gains preferential access to 87 percent of the commodity nomenclature in trade with the EAEU.
- Suppliers from EAEU countries exporting to the Iranian market can annually save up to $380 million on import customs duties.
- Suppliers from Iran exporting to the EAEU market can annually save up to $50 million on import customs duties.
According to the explanatory note to the bill, reciprocal concessions have been granted to the Iranian side by the EAEU concerning sensitive agricultural commodity positions with the possibility of applying tariff quotas and seasonal nullification.
Additionally, imports from Iran to Kyrgyzstan include various products such as tea, processed vegetables and fruits, dates, nuts, facing tiles, glass products, chemicals, clothing, furniture, and more.
