Tajikistan Free Trade Agreements: An Overview
In today`s interconnected world, international trade is crucial to the economic growth of many countries. Tajikistan, a small, landlocked nation in Central Asia, has been working towards expanding its trade relations with other countries through the negotiation and signing of free trade agreements (FTAs). These agreements aim to reduce trade barriers and facilitate the movement of goods and services between countries, ultimately boosting economic growth and creating new opportunities for businesses.
So, let`s dive into Tajikistan`s free trade agreements and see what benefits they offer:
The Eurasian Economic Union (EAEU)
The EAEU is a trade bloc consisting of Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, which was created to promote economic integration and facilitate the free flow of goods, services, capital, and labor among its member states. Tajikistan joined the EAEU as a full-fledged member in 2019, thereby gaining access to a market of 183 million consumers. The EAEU agreement eliminates customs duties on many products and provides for the harmonization of technical regulations, making it easier for Tajik exporters to access this large market.
China
Tajikistan and China signed their first FTA in 2018, which eliminates tariffs on over 90% of traded goods, including cotton, aluminum, and fruits. China is one of Tajikistan`s largest trading partners, and this agreement has the potential to boost bilateral trade even further, especially in the areas of infrastructure development, energy, and agriculture.
Iran
Tajikistan and Iran signed a preferential trade agreement in 2009, which reduces tariffs on a variety of goods, including food, textiles, and machinery. This agreement has helped to increase bilateral trade between the two countries, which stood at over $51 million in 2019.
Turkey
Tajikistan and Turkey signed an FTA in May 2021, which aims to increase bilateral trade and investment between the two countries. The agreement provides for the elimination of tariffs on many products, including agricultural and industrial goods, and sets out rules for investment protection, technical cooperation, and dispute settlement.
Pakistan
Tajikistan and Pakistan signed an FTA in 2018, which provides for the elimination of tariffs on a range of goods, including textiles, leather, and food products. This agreement has already shown positive results, with bilateral trade between the two countries increasing by 33% in 2020.
Conclusion
Tajikistan`s free trade agreements with its neighbors and key trading partners have the potential to unlock new economic opportunities for the country. By eliminating trade barriers and creating new markets for Tajik exporters, these agreements can boost trade, create jobs, and promote economic growth. As Tajikistan continues to engage with the global economy, it will be important to continue to seek out and negotiate new FTAs, while also ensuring that the benefits of these agreements are shared equitably across the country.