Reza Tofighi said the free trade deal, effective since May 15, 2025,
does not pose a threat to Iran’s masterbatch and compound industries unless
significant production capacity exists in member states, including Russia,
Armenia, Kyrgyzstan, Kazakhstan, and Belarus.
Tofighi noted that while Iran is not an official member of the EAEU,
the agreement covers tariff eliminations on approximately 87% of traded polymer
products between Iran and the five EAEU countries. Before the agreement,
tariffs averaged 5% for compounds and 10% for masterbatch products.
He added that the remaining 13% of goods excluded from tariff reductions
are primarily items generally banned from import into Iran under national
regulations. Tofighi emphasized that countries maintain sovereign rights over
trade regulations, and free trade agreements represent shared commitments to
promote mutual economic welfare.
The agreement also includes a “rules of origin” protocol requiring a
minimum 50% local content in products to qualify for tariff-free trade. This
prevents products manufactured outside the union, such as machinery made in
South Korea, from entering Iran duty-free via EAEU countries unless
sufficiently processed or assembled within the union.
The comprehensive free trade area agreement between Iran and the EAEU
was officially implemented on May 15, 2025, marking a significant step in
regional economic cooperation.