Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

---

This paper investigates the quantitative Effects of ECO Trade agreement(ECOTA) implementation on trade development of Iran. For this purpose, the amount of tariff reduction effects on Iran’s exports(to) or its imports( from) ECO members is estimated and analyzed. The results indicate that with implementation of tariff rate reduction in ECOTA framework, Iran’s exports to ECO countries in 2008 relative to base year(2003) will increase about 1.27 million U.S. dollars( only to Pakistan). Also, Eco members’ imports from Iran will not be substituted by imports out of region. A review of ECO members with reference to taking effect them from ECOTA implementation means that except for Pakistan and Uzbekistan, None of them are obliged to tariff reduction up to 10% marginal rate. On the other hand, Iran’s tariff rate reduction in the ECOTA framework results in increasing 18.99 million U.S. dollars in Iran’s imports from ECO countries. Regarding a substitution-price elasticity near to zero for Iran’s imports from ECO countries and despite of discriminatory tariff reduction of imports from these countries, Iran will not substitute the imports originating from ECO by importing from other countries out of region. Indeed, an 18.2 percent tariff rate reduction in Iran’s imports from ECO will result in 1.6 percent increase in total imports from these countries.

Keywords: Iran, ECO trade Agreement (ECOTA), Trade Creation, Trade Dispersion, Trade Development

Full-Text [PDF 241 kb]   (2321 Downloads)    

Add your comments about this article : Your username or Email:

---