India will begin free trade talks with the Eurasian Economic Union (EAEU) in 2025, aiming to boost economic ties. The EAEU, comprising Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia, promotes free movement of goods, services, and labor. Governed by the Supreme Council and Eurasian Economic Commission, it enhances member states’ competitiveness.
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Picture Courtesy: EAEUNION
Free trade agreement discussion between India and the Eurasian Economic Union countries are expected to start this year.
It is an international economic union comprising countries in Northern Eurasia. Established by the treaty on the Eurasian Economic Union, signed in May 2014. Its goal is to create a single economic market.
The core principle of the EAEU is the "four freedoms" – ensuring the free movement of goods, services, capital, and labor among its member states. Currently, the EAEU consists of five member countries:
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The EAEU operates through a three-tiered governance structure.
Supreme Eurasian Economic Council => This is the apex decision-making body of the union. It is composed of the Heads of State (Presidents) of the member countries and makes the most critical decisions regarding the EAEU's direction and development.
Eurasian Economic Commission (EEC) => Based in Moscow, the EEC is the permanent, supranational regulatory body. Its primary role is to ensure the day-to-day functioning and development of the EAEU. The EEC proposes new policies and initiatives to further economic integration among the members.
Court of the EAEU => Located in Minsk, Belarus, this is the judicial body of the union. Its function is to ensure the uniform application and interpretation of the EAEU Treaty and other agreements signed within the union's framework.
Officials have confirmed that formal negotiations for an India-EAEU FTA are expected to start in 2025. Both sides are currently finalizing the terms of reference for the talks.
Strategic and economic benefit for India
Market Access => The agreement would provide India preferential access to a combined market of over 180 million people and a GDP of over $2 trillion.
Energy and Resources =>The EAEU bloc, particularly Russia and Kazakhstan, is rich in natural resources and energy, which are vital for India's growing economy.
Connectivity => The partnership aligns with India's efforts to enhance connectivity, particularly through the International North-South Transport Corridor (INSTC), which aims to connect India with Russia and Northern Europe via Iran and Central Asia.
Geopolitical Balancing => Strengthening ties with the EAEU, a bloc where Russia is a leading member, helps India in its strategy of multi-alignment and balancing its relationships with different power centers globally.
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PRACTICE QUESTION Q. Which of the following countries is not a member state of the Eurasian Economic Union? A) Armenia B) Kazakhstan C) Ukraine D) Kyrgyzstan Answer: C Explanation: The Eurasian Economic Union is an economic union of states located in Eastern Europe, Western Asia, and Central Asia. The current member states of the EAEU are: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia. |
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