Eurasian Economic Union and Iran move forward on trade deal despite Trump threat

Eurasian Economic Union and Iran move forward on trade deal despite Trump threat

The Russian-led Eurasian Economic Union will meet in Sochi today and is expected to continue negotiations on a free trade

Iran is reintigrating into the world economy and there’s very little Donald Trump can do about it

Photo: Fotolia/ Borna_Mir

The Russian-led Eurasian Economic Union will meet in Sochi today and is expected to continue negotiations on a free trade agreement with Iran.

Despite their military cooperation in Syria, Russian-Iranian trade has remained relatively small. However, Moscow and Tehran have steadily expanded economic ties in the past few years; last month the two countries inked a $2.9 billion deal to jointly produce railway equipment in Iran.

Negotiations come as President Trump is reportedly planning to “decertify” Iran’s compliance with the 2015 nuclear deal, which would allow Congress to re-enact sanctions with just 51 votes in the Senate. Although 58 Senators voted to “disapprove” of the deal in 2015, concerns that reneging on the agreement could harm American credibility may prevent Congress from ”snapping back” sanctions.

The negotiations of a free trade deal with the Eurasian Economic Union makes it clear that other nations will not follow the US if it backs out of the nuclear accord. With global economic interest in Iran, and international commitment to the deal, Tehran looks set to continue its reintegration into the global economy.

Delve Deeper: The future of Russia-Iran relations

 

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