Iran expects new border free zone to boost trade with Armenia

TEHRAN, Dec. 17 (Xinhua) -- The newly-established free economic zone on the Iranian-Armenian border would boost bilateral trade between the two countries, said Iranian Ambassador to Armenia Kazem Sajjadi on Sunday.

"The launch of the Meghri Free Economic Zone will increase the trade turnover volumes between Armenia and Iran," said the Iranian envoy.

Armenia launched Friday the free economic zone in its southernmost city of Meghri on the border with Iran, the Financial Tribune reported.

The zone will house a range of companies in the spheres including agriculture, manufacturing, trade, cargo shipment, storage and tourism.

Companies operating in the zone will be exempt from profit tax, value-added tax, excise tax and customs fees, and pay only the income tax.

Armenian officials expect the zone to attract in the coming years 50-70 companies with investment worth a total of 100-130 million U.S. dollars, and create more than 1,500 jobs.

Trade between Armenia and Iran grew in the 10 months in 2017 to 211.4 million dollars, up 6 percent from 199.4 million dollars in the previous year.

Exports to Iran from Armenia during the period stood at 66.9 million dollars, a year-on-year increase of 2.3 percent. Exports to Armenia from Iran stood at 144.4 million dollars, up 7.8 percent.

Since Armenia's borders with both Turkey and Azerbaijan were closed due to the Nagorno-Karabakh conflicts, Iran remains one of the few channels for landlocked Armenia to link to the outside world. Enditem