In Response to US Unreliability: Iran-Venezuela Finalise FTA

Failure of American negotiations has prompted the agreement.

Image: Diálogo Americas

Iran and Venezuela are on the verge of finalising a long-dormant free trade agreement, with completion expected in the coming days. Originally initiated over two decades ago, the agreement has now been revived with a renewed emphasis on strengthening bilateral commercial ties. The agreement builds on a 20-year cooperation pact signed in 2022 and is being framed as a commercial accord aimed at unlocking the trade potential between the two nations. This revival represents a strategic manoeuvre by both countries, the impetus of which is their growing frustration with stalled or deteriorating negotiations with the United States.

Anti-Western Energy

Iran and Venezuela have maintained close diplomatic relations since the 1960s, when both were founding members of the Organisation of the Petroleum Exporting Countries (OPEC). Their ties deepened significantly during the Chávez–Ahmadinejad era, underpinned by a shared opposition to Western hegemony and U.S. foreign policy. Despite this ideological alignment, their commercial relationship has remained limited in scope, largely confined to the energy sector. Since 2020, Iran has supplied Venezuela with fuel and related products to help alleviate acute domestic shortages. Efforts to expand economic cooperation have been repeatedly hindered by stringent U.S. sanctions, which have constrained trade, investment, and financial transactions between the two nations.