July 13, 2024
Policies

Kyrgyzstan Approves FTA With EAEU And Iran, Slashing Import Duties

The Parliament of Kyrgyzstan has approved the draft of the Federal Law on the Ratification of the Free Trade Agreement between the Eurasian Economic Union (EAEU) and Iran during its third reading, Trend reports via the parliament.

The agreement, signed on December 25, 2023, in St. Petersburg, Russia, covers a broad range of topics, including trade in goods, domestic market protection, technical trade barriers, sanitary and phytosanitary measures, rules of origin, customs administration, dispute resolution, public procurement, sectoral cooperation, and more.

Kyrgyzstan imports a variety of products from Iran, such as tea, processed fruits and vegetables, dates, nuts, tiles, glassware, chemical products, clothing, and furniture. In return, Kyrgyzstan exports items like beans, cotton fiber, nuts, silkworm cocoons, and other commodities to Iran.
Under the agreement, Iran’s average import duty rate on Kyrgyz goods will be significantly reduced from 17 percent to 3 percent. This reduction is anticipated to save Kyrgyzstan up to $2 million annually in import customs duties.

Furthermore, the agreement facilitates the start of exports from Kyrgyzstan to Iran for goods not currently traded, including unreinforced glass, bags and sacks, mutton and lamb, meat and by-products of cattle, corn, sunflower oil, and barley, all benefiting from zero duties.

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