NEW DELHI, July 30. /TASS/. The agreement on a free trade zone between India and the Eurasian Economic Union (EAEU) may be concluded shortly with support of the countries’ leadership, Director General and CEO of the Federation of Indian Export Organizations (FIEO, set up by the Indian Ministry of Commerce and Industry) Ajay Sahai told TASS.
"Talks have already started, we are negotiating with Armenia, Belarus, Kyrgyzstan, Kazakhstan, and Russia," he said.
It is usually a lengthy process to reach such agreements, the expert added. "But at times it all depends on the top leadership because if the top leadership is very clear, probably these kinds of negotiation can be firmed up in a very short time," he noted. Negotiators finalize 90% of issues whereas 10% of issues, which are crucial, is addressed by the leadership of the countries, Sahai stressed.
The free trade agreement between India and the EAEU will be beneficial for both sides’ business, the analyst believes. "Assuming that we enter into the zero tariff regime the goods exported from India will attract a zero percent duty, which will be very profitable for business, and the consumer will get the advantage," he said.
Official Spokesperson of the Indian Ministry of External Affairs Randhir Jaiswal said earlier that India and the EAEU were negotiating the date of holding the next round of the free trade agreement talks, adding that the sides already negotiated that agreement in March.
At the 22nd Russian-Indian summit that took place in Moscow during Indian Prime Minister Narendra Modi’s visit to Russia on July 8-9, a joint statement was signed. Among other things, it notes that Russia and India have reached an agreement on developing the issue of creation of a free trade zone between the EAEU and India. The document notes the intention to remove non-tariff trade barriers related to bilateral trade between India and Russia, the continuation of dialogue in the area of liberalization of bilateral trade, including the possibility of establishing the EAEU-India free trade zone. The EAEU includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.