The impact of the preferential tariff agreement between Iran and the Eurasian Economic Union on the competitiveness of product

Document Type : Research Article

Authors

1 M.A in Economics, Department of Economics, Faculty of Management and Economics, University of Guilan, Rasht, Iran

2 Assistant Professor, Department of Economics, Faculty of Management and Economics, University of Guilan, Rasht, Iran

Abstract

The preferential tariff agreement between Iran and the Eurasian Economic Union provides an important framework for assessing the effects of reducing tariff barriers on the competitiveness of selected products. Focusing on two groups of products, namely agri-food and textiles, this study seeks to measure the impact of the agreement on Iran’s industrial competitiveness index. Using panel data for the period 2010–2023 and the Generalized Method of Moments (GMM) approach, the results show that reductions in import tariffs have a positive and statistically significant effect on competitiveness, and vice versa. By contrast, export tariffs have a positive but statistically insignificant effect. Exports have a positive and significant effect on the competitiveness index, emphasizing the role of trade expansion in industrial development. Imports, however, have a negative and significant effect on competitiveness. The implementation of the preferential tariff agreement has improved the competitiveness of Iran’s agri-food and textile industries. Constructive measures aimed at concluding preferential tariff agreements with regional economic blocs, reforming the tariff structure, improving logistics and customs infrastructure, and strengthening export-oriented policies can pave the way for sustainable improvements in competitiveness and Iran’s effective integration into international trade.

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Main Subjects

یادداشت

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Journal of Economic Policies and Research
Volume 5, Issue 3 - Serial Number 19
September 2026
Pages 63-85

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History

  • Receive Date: 11 January 2026
  • Revise Date: 29 June 2026
  • Accept Date: 14 July 2026
  • Publish Date: 23 September 2026

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