Iran, Armenia plan to establish joint free trade zone on border

Iran and Armenia have agreed to establish a joint free trade zone on their border.

Hojjatollah Abdolmaleki, the secretary of Iran's Supreme Council for Free Zones, and the Armenian ambassador in Tehran, Arsen Avagyan discussed the opening of the Aras-Meghri Free Trade Zone, Iran’s Mehr news agency reported on 25 May.

According to Zohreh Bahrehbar, the financial coordinating director of Iran's Supreme Council of Free Zones, “the purpose of the formation of joint free zones is to provide services, management and common ownership, which leads to the development of economic diplomacy, promotion of regional cooperation, encouragement and mutual support of investors and development of commercial infrastructure”.

“The increase in foreign exchange income, foreign investment and government revenues, along with the growth of exports and improvement of human resources, are among other benefits of common free zones,” he added.

In May 2022, Iran’s Aras Free Trade Zone and Armenia’s Meghri Free Economic Zone signed a memorandum of understanding to expand cooperation, on the sidelines of the 17th Iran-Armenia joint economic cooperation commission.

In this document, the two sides stressed the need to prepare the ground for more cooperation between the economic activists of the two countries and the use of special facilities of the Iran-Armenia Free Zone to develop industrial, production, trade and trade relations.