India-Iran trade pact replaces 1974 agreement, mandates ACU mechanism

It replaces the previous Indo-Iranian Trade Agreement of 1974 and establishes frameworks for tariffs, payments, and commercial activities.

Who it concerns: The agreement involves the Governments of the Islamic Republic of Iran and the Republic of India. It affects natural persons, legal entities, commercial companies, institutions, Chambers of Commerce, and state corporations engaged in trade, investment, and joint ventures between the two countries.

What was agreed

• Granting treatment no less favourable than that accorded to third countries regarding customs duties, clearance rules, and import/export licenses.
• Issuing certificates of origin in accordance with the Global System of Trade Preferences among Developing Countries (GSTP).
• Conducting all trade payments in freely convertible currencies and in conformity with the ACU mechanism.
• Encouraging mutual investments, joint ventures, and cooperation in science, technology, tourism, and communication.
• Permitting the establishment of trade offices or centers in each other's territories.
• Providing consular facilities such as business visas and certification of commercial documents.
• Validity period of five years, automatically extended for successive one-year periods unless terminated with six months' written notice.

Also in the document

• The agreement explicitly supersedes and replaces the Indo-Iranian Trade Agreement of 31st August, 1974.
• It mandates the use of the ACU mechanism for trade transactions.
• It references the Global System of Trade Preferences among Developing Countries (GSTP) for customs duties and certificates of origin.