ASTANA (TCA) — The Eurasian Economic Union (EEU) and Iran have signed a temporary agreement to establish a free trade zone during an economic forum in Astana in Kazakhstan, Russia’s Sputnik news agency reports.
Iran and the Eurasian Economic Union — which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia — signed a provisional pact on May 17 to create a free trade zone, the chair of the board of the EEU Economic Commission said.
“The temporary agreement stipulates an effective dispute settlement mechanism, including arbitration… It also creates a joint committee of high-ranking officials and establishes a business dialogue,” Tigran Sargsyan said at the ceremony in Astana, Kazakhstan.
The arrangement will last for three years to allow for a full-fledged deal on a free trade zone.
“Our negotiators have already set a long-haul objective for the next three years to agree a full-fledged accord on a free trade zone,” Sargsyan announced.
It is the first step in streamlining trade between the Islamic Republic of Iran and the five-nation economic bloc.
The EEU was established in 2015 by Russia, Kazakhstan, and Belarus, and was later joined by Armenia and Kyrgyzstan. In 2016, Vietnam officially became the first non-regional country to join the bloc’s free trade zone, which is designed to ensure the free movement of goods, services, capital, and workforce. Since then, China, Indonesia, Israel, South Korea, Egypt, and India, as well as some South American countries, have expressed interest in a free-trade regime with the EEU.
