IRAN-TURKEY PREFERENTIAL TRADE AGREEMENT
Iran-Turkey Preferential Trade Agreement, 19th Bi-Weekly N & A (January 7, 2015) According to Tehrantimes.com on December 31, 2014:
TEHRAN – The preferential trade agreement, which was signed last year between Iran and Turkey, goes into force on January 1, 2015….
In January 2014, Iran and Turkey signed the agreement with the goal of boosting bilateral trade. The agreement was signed during Turkish Prime Minister Recep Tayyip Erdogan’s visit to Iran.
According to the agreement, 125 items of Iranian goods and 140 items of Turkish goods will be traded based on preferential tariffs as of January 1, 2015.
Irna.ir also reported on January 2, 2015 that:
The Iran-turkey preferential trade agreement, which was earlier approved by the Iranian government was confirmed by the Turkish Parliament and put in effect bilaterally as of Thursday, January 1, 2015.
According to this agreement, the tariffs of 125 items of Iranian goods are decreased in Turkey’s favor and those of 140 Turkish goods in favor of Iran.
Signing preferential trade agreement with different countries is one of the measures that can pave the path for Iran to join the World Trade Organization (WTO).
Iran has so far signed nine such agreements with different countries.
In this News & Analysis report we analyze and discuss the following issues:
1) What is the significance of Preferential Trade Arrangements (PTAs) in the global context?
2) What are the economic and legal impacts of the PTA signed with Turkey?
3) Is Iran-Turkey PTA beneficial for Iran or not?
4) How would it be possible to manage a PTA to maximize its benefits and minimize its negative repercussions?