Iran and Uzbekistan aim to boost trade volume tenfold under a PTA agreement.

Iran and Uzbekistan have signed a Preferential Trade Agreement (PTA) that will enable the countries to boost their trade volume to $5 billion annually, up from the current figure of just $0.5 billion. This was announced by Akbar Godari, who heads the Iranian Trade Promotion Organization (TPO) office for trade in Central Asia.

A senior TPO official stated on Tuesday that the agreements were reached during the recent visit of Uzbekistan's Minister of Trade Laziz Kudratov to Tehran last week.

Godari indicated that the two nations have agreed to lower trade tariffs on certain goods and products exported from Iran, including railway cars, turbines for electricity generation, steel, and petrochemical products.

Iran is working to enhance its trade volumes with regional and allied nations amid sanctions that limit its access to Western markets.

The country has already signed mutual trade cooperation agreements with the Russia-led bloc of Eurasian economies known as the EAEU, as well as with countries like Pakistan and Indonesia.

However, Tehran is keen to facilitate access to markets in Central Asia, where landlocked countries are looking to capitalize on trade conducted via new East-West and North-South transport corridors.

Data from the Iranian government indicates a significant increase in cargo transit through Iran to and from Turkmenistan, which serves as a gateway for trade with Central Asia.

Uzbekistan is the most populous country in Central Asia and has close cultural and historical ties with Iran, making it easier for Iranian businesses to trade with partners in the country.