Iran expects free economic zone to boost trade with Armenia

PanARMENIAN.Net - The newly-established free economic zone on the Iranian-Armenian border would boost bilateral trade between the two countries, Iranian Ambassador to Armenia Kazem Sajjadi has said, according to the Financial Tribune.

The FEZ that opened in the southern Armenian town of Meghri will embrace a wide framework of sectors, including agriculture, manufacturing industry, trade, cargo shipment and storage economy and tourism among others.

Companies operating in the Meghri FEZ will be exempt from profit tax, value added tax, excise tax and customs fees, paying only income tax. Armenian officials expect the zone to attract 50-70 companies in the coming years, investing a total of $100-130 million and creating more than 1,500 jobs.

“The launch of the Meghri Free Economic Zone will contribute to increasing the trade turnover volumes between Armenia and Iran, exchanging experience with Iranian free economic zones,” said the Iranian envoy.

Trade between Armenia and Iran totaled $211.4 million during the 10 months of 2017 , up 6% from $199.4 million in the corresponding period of last year. Exports to Iran from Armenia during the period stood at $66.9 million, up 2.3% year-on-year. Exports to Armenia from Iran stood at $144.4 million, up 7.8% year-on-year.