Iran to Become Freight Transport Hub in Region
TEHRAN (Tasnim) – Once the Free Trade Agreement (FTA) recently inked between Iran and the Eurasian Economic Union’s member states is implemented, Iran will be turned into a freight transportation hub in the region.
Given the access of the country to the high seas, there is and opportunity for the country to transport goods via the International North-South Transport Corridor (INSTC).
Iran can become a freight transportation hub in the region with the expansion of the air transportation ties with EAEU countries, Head of the Iranian Civil Aviation Organization (CAO) Mohammad Mohammadibakhsh stated.
“Following the signing of a Free Trade Agreement between Iran and member states of the union, suitable opportunities will be provided for the expansion of the trade relations among these countries," he said, TIN News reported.
Earlier, an official at the Trade Promotion Commission of Iran’s House of Industry, Mine and Trade said that implementation of the FTA will increase Iran’s export of products to the markets of the EAEU member states.
The FTA was signed by Iran’s Minister of Industry, Mine and Trade Abbas Aliabadi and officials of the union in St. Petersburg on Monday.
Upon the implementation of this agreement, the tariff rate of 87 percent of trade goods between Iran and EAEU member states will be minimized to zero level.
In 2018, Iran and the EAEU inked a Preferential Trade Agreement (PTA), which came into effect on October 27, 2019. The two sides later began negotiations to upgrade the PTA to an FTA after the success of the former.
