From May 14, 2025, the free trade agreement between Iran and the Eurasian Economic Union was officially implemented. Under this agreement, customs tariffs on 87 percent of the goods traded between Iran and the five member states of the union (Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan) have been reduced to zero. This measure provides significant opportunities for Iran’s steel industry.
The reduction or elimination of tariffs can facilitate the export of Iranian steel products to Eurasian markets, and especially in circumstances where member countries face import restrictions, Iran can play an important role in meeting their steel needs.
However, challenges also lie ahead for Iran’s steel industry. Competing with major steel producers in member states, particularly Russia and Kazakhstan, requires improving quality and reducing production costs in Iran. In addition, infrastructural problems in the transportation sector and banking restrictions resulting from sanctions may hinder the full utilization of these opportunities.
Increased steel exports may lead to reduced supply in the domestic market and consequently rising prices. To prevent this, it is essential to expand production capacity and attract new investments in the steel industry.
Overall, the implementation of the free trade agreement between Iran and the Eurasian Economic Union can be a turning point in the development of Iran’s steel exports. However, full utilization of this opportunity requires removing existing barriers and strengthening the country’s industrial and commercial infrastructure.
