Mehr News Agency

Mojtaba Mousavian, head of Asia and Oceania Trade Office at TPO, said that talks between the two sides regarding the initiative have been fruitful and the agreement is set to be implemented within the next month.

The official said as per the agreement, each side will reduce tariffs on 80-100 products purchased from the other country.

A preferential trade agreement is a pact between countries that reduces tariffs for certain products to the countries who sign the agreement. While the tariffs are not necessarily eliminated, they are lower than countries not a party to the agreement.

According to Mousavian, urea, methanol, propane, tar, iron, butane, pistachio and dates, are among the products, shipped from Iran to India, which are slated to enjoy tariff reduction.

In exchange, Indian goods included in the initial list are rice, tea, carbon Electrode, paper, aluminum oxide, medical supplements and sesame. The list still awaits finalization and could undergo changes.