Free Trade with Iran: New Opportunities for Kazakhstan’s Agro-Industrial Sector

As of May 15, 2025, countries of the Eurasian Economic Union (EAEU) have received unique conditions to expand exports to Iran — a full-format free trade agreement between the EAEU and the Islamic Republic of Iran has officially entered into force, according to the Eurasian Economic Commission (EEC).
The new agreement replaces the interim deal in effect since 2019, which covered only a limited range of goods. Now, the preferential regime covers approximately 90% of the entire list of traded products. This means that the vast majority of exported goods, including those in the agro-industrial sector, will be exempt from import duties.

One of the key changes is a sharp reduction in the average import duty rate on the Iranian side — from 20% to 4.5%. This step is expected to significantly increase the competitiveness of goods from EAEU countries in the Iranian market.
As part of the agreement’s implementation, the parties have already begun preparations for the first meeting of the Joint Committee, scheduled for the second half of 2025. During this meeting, specific measures for further development of trade and economic cooperation will be discussed. The EEC emphasizes that the new format of cooperation includes not only tariff reductions but also improved regulatory mechanisms aimed at eliminating non-tariff barriers.

For Kazakhstan, the agreement opens significant export prospects. In particular, the country now has the right to export up to 3 million tons of wheat and 1.5 million tons of barley to Iran duty-free. Additionally, Iran has lifted import duties on other key Kazakh agricultural products such as corn, buckwheat, sunflower oil, fertilizers, as well as steel, chocolate, and agricultural machinery.

Experts predict that the implementation of the agreement could increase mutual trade volumes severalfold, potentially reaching $12 billion in the medium term.
For Kazakh agro-exporters, this agreement is not just about market access — it is a strategic window of opportunity into a growing and dynamic Middle Eastern market. Especially considering the logistical proximity, historical trade ties, and rising demand in Iran for grains and processed goods.

Key Takeaways:
• As of May 15, the EAEU–Iran free trade agreement is in effect — up to 90% of goods can be traded duty-free.
• Kazakhstan can now export up to 3 million tons of wheat and 1.5 million tons of barley to Iran without tariffs.
• Iran’s average import tariff on EAEU goods has dropped from 20% to 4.5%, significantly strengthening exporters’ positions.