World

India, Russia engage in FTA Talks involving the Eurasian Economic Union

India and Russia are engaging in discussions to for a free trade agreement (FTA) involving the Eurasian Economic Union (EAEU), leaders of both the nations said on April 17th. Russian deputy prime minister Denis Manturov, who is also the Trade and Industry Minister of Russia, had arrived in New Delhi on Monday to co-chair the Intergovernmental Russian-Indian commission, which aims to strengthen trade ties between the two nations.

During the Dialogue, which was hosted by the Federation of Indian Chambers of Commerce and Industry (FICCI), Denis Manturov and Indian External Affairs Minister Dr. S. Jaishankar spoke and conveyed that they have entered “advanced negotiations” over an FTA, in order to form closer economic ties.

“We pay special attention to the issues of mutual access of production to the markets of our countries. Together with the Eurasian Economic Commission we are looking forward to intensifying negotiations on a free trade agreement with India,” said Russian Trade Minister Denis Manturov, referring to the executive body of the EAEU. Trade preferences and a mechanism that guarantees protection of investments “will be in demand among Russian and Indian businessmen”, added Manturov.

Dr. S. Jaishankar further conveyed that FTA talks between India and Russian-led Eurasian Economic Union were hampered by the Covid pandemic. He said that Indian external affairs ministry is in favour of resumption of talks because the proposed pact “will make a real difference to trade relationship”.

EAM also mentioned how India and Russia have already met their bilateral trade target of $30 billion before the target year of 2025. He further stated that the increase in two-way trade between Apr 2022 – Feb 2023 to $45 billion has given rise to “understandable concern” about trade imbalance. “We need to work together with our Russian friends on a very urgent basis on how to address that imbalance. And addressing that imbalance really means addressing the impediments — whether they are market access impediments, whether they are non-tariff barriers, whether they are related to payments or to logistics,” said EAM Jaishankar.

Both sides can diversify and expand in terms of goods by exploring trade possibilities in automobiles and spare parts, electronics items, medical equipment, textiles, food and agricultural items and solar photovoltaic modules, EAM Jaishankar said.

Indian Commerce minister Piyush Goyal also met Denis Manturov and discussed various issues concerning trade and commerce, according to media reports.

The Russia-led Eurasian Economic Union (EAEU or EEU) is an economic union of few post-Soviet states located in Eurasia. The five-member Union comprises Russia, Kazakhstan, Kyrgyzstan, Armenia and Belarus. According to reports, a joint statement to launch FTA negotiations between India and EAEU was signed in June 2017.

 

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