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EEU and India begin negotiations over free trade agreement

The EEU and India began official negotiations on concluding an agreement on a free trade zone, the Eurasian Economic Commission reported.

It is noted that during the St. Petersburg International Economic Forum a joint statement on the start of negotiations was signed. Recall, in 2016, the joint group completed the study on the feasibility of signing such a document.

«A new stage of the relationship between the EEU and India begin. It will open additional opportunities for expanding trade and mutual attraction of investments, which the economies of our countries need. We have an opportunity to develop cooperation in a qualitative way. We will be able to create the necessary conditions to improve the competitiveness of our products in the markets, strengthen cooperation, create incentives for establishing business dialogue in all spheres of the economy," member of the EEC board Veronika Nikishina said.

Liberalization of the trade regime will lead to an increase in the GDP of all the countries of the EEU and India in the short term. According to expert estimates, commodity turnover may grow to 30–40 percent.

It is noted that the forthcoming talks will cover a wide range of topics of trade regulation, including customs administration, protection of intellectual property rights, reduction of tariff and non-tariff barriers in mutual trade, and others.

At the same time, the EEC expects that the elimination of tariffs after the entry into force of the agreement will increase the export of agricultural products from the EEU countries to India. This applies to cereals, vegetable oils, vegetables, beverages, including mineral water. It’s also about the export supplies of industrial goods such as fertilizers, machinery and equipment, vehicles, some types of turbojet engines, salt, steel products, wood, chemicals, rubber, plastics.