Armenia is an Active Player in Iran-EAEU Free Economic Zone Creation

• 05.25.2018, 12:20
• Lilia Amirkhanyan
•  Region,  "Insight" Analytical Center ,  Armenia

The long-awaited agreement on the establishment of the Iran-EAEU free economic zone has finally been concluded. It is an important economic achievement that has certain advantages for Armenia.

First of all, it should be noted that the agreement is temporary, for three years. After the end of the three-year term, in case of success, there is an expectation of a full agreement. This implies the prerequisite for the most effective deployment of the free economic zone.

The pragmatism of the role and contribution of Armenia is more obvious due to a number of circumstances. First of all, only Armenia from the EAEU countries has a land connection with Iran, which means that geographically the FEZ will be located in our country. This, in turn, implies development of Meghri FEZ with Iran, new jobs in our country, economic activity growth, growth of Iran-Armenia mutual trade. Trade turnover within the FEZ includes 400-500 types of products, in exporting of which Armenia is quite interested.

On the other hand, taking into account the existence of the West's nuclear program with Iran, which is fraught with risky developments for the latter, Armenia will be viewed as a bridge to the outside world, with an additional institutional lever.

Finally, Armenia has played the negotiating role in the creation of the Iran-EAEU Free Economic Zone. Hence, successful negotiations will raise RA's importance in the EAEU, as well as spread relevant signals on the effectiveness of the EAEU-Armenia- third-party negotiating potential.