The Eurasian Economic Union (EEU) currently
has five members: Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. But
several other countries, including Iran, have expressed interest in becoming
members.
But will Iran actually join the Eurasian
Economic Union? It’s hard to say.
Iran has taken steps to become more engaged
with the EEU in recent years, but there is no guarantee the union will actually
expand to include Iran, or other interested countries.
Free Trade Zone Between Iran and
Eurasian Economic Union
One major step to bring Iran and the EEU
closer was the formation of a free trade zone.
In May 2018, Iran and the EEU signed a
three-year provisional agreement. This agreement decreases or eliminates import
duties and establishes a more transparent trade relationship.
However, this free trade zone does not
necessarily ensure Iran will join the EEU in the future. Several other
countries have expressed interest in cooperation agreements with the Eurasian
Economic Union in the past, including Mongolia, India, Vietnam, Egypt, and
Israel. Despite some countries negotiating successful free trade agreements,
none have actually joined the EEU.
Challenges for Iran Joining the
Eurasian Economic Union
Iran’s relationship with the global
marketplace is a major factor when it comes to joining the Eurasian Economic
Union.
The United States has imposed some form of
sanctions on Iran since 1979. In a February address, Iran’s
Minister of Energy Reza Ardakanian noted that joining the EEU during this
period of sanctions would be a huge undertaking, and he said “cooperating
between public and private sectors can help boost the economy of the country
significantly.”
The EEU is a regional trade organization
recognized by the WTO, and it typically negotiates as a single entity in
international deals. Iran is not currently a member of the World Trade
Organization (WTO), which represents over 96% of global trade and GDP.
According to ScienceDirect, internal conflict among the
five member states of the EEU may also make Iran’s membership more difficult to
achieve at this time. Strong interests from individual member countries has at
times prevented consensus, and the Eurasian Economic Union has not grown since
adding Kyrgyzstan and Armenia in 2015.
Benefits to Iran of Joining the
Eurasian Economic Union
Iran would benefit in many ways from joining
the EEU. Freer trade in the region would allow all Iranian producers to reach a
wider audience—energy companies, goods manufacturers, farmers, and more.
An agreement with other Eurasian countries
would also ensure greater quality and uniformity in Iran’s products. Consumers
in Iran and other member states will reap the benefits of safe, reliable
products with consistent production and labeling.
Contact G&M Compliance to
Learn More
G&M Compliance is a full-service
compliance partner for the Eurasian Economic Union. We help manufacturers and
exporters go to market faster in Russia, Armenia, Belarus, Kazakhstan, and
Kyrgyzstan.
Contact G&M Compliance to learn more about
the EEU and how to get products certified for sale in EEU countries.