Русский
The Eurasian Economic Union (EAEU) may launch negotiations on a free trade agreement (FTA) with India in 2025. Deputy Economic Development Minister Vladimir Ilichev said
that “this discussion has been ongoing for a long time. Moreover, on our side, at the EAEU level, all necessary decisions to begin negotiations have already been made. By the end of last year, we gained a more optimistic impression of our Indian partners’ stance. At the very least, we have started discussions with them on this matter. We hope that official negotiations will commence this year,” he said. “Given India’s higher level of customs tariffs, the potential positive impact for our exporters is more apparent, while the risks associated with an FTA are significantly lower,” he said.
Concerning other ongoing FTA related discussions, there is also a strong possibility of concluding FTA negotiations with the United Arab Emirates in 2025, as EAEU representatives have already indicated that the process is practically complete, Ilichev said. “At the same time, we assume that Russia will finalize FTA negotiations in the services sector separately. It is important to note that the EAEU signs FTAs for goods, while FTAs for services are handled by each country individually,” he said.
As for Indonesia, “our goal is clear – to sign an FTA on goods with them in 2025 or at least finalize the negotiations by then,” he said.
“EAEU colleagues have also actively initiated a joint research group on an FTA with Tunisia. Formal negotiations have not begun yet; currently, both sides are in a preliminary stage, exchanging data to assess potential impacts. But I think there is a good chance that negotiations will start this year,” Ilichev said.
Regarding an FTA with Egypt, he said that “the situation remains difficult. Three years ago, we essentially reached an agreement on industrial goods, with only a few unresolved issues in the agricultural sector. However, the Egyptian side later paused negotiations due to concerns from certain industries, and the process remains frozen.”
A similarly uncertain situation has arisen in negotiations with Mongolia. “FTA negotiations with Mongolia were practically completed by the end of last year. However, shortly thereafter, our Mongolian colleagues requested a reopening of discussions due to some emerging challenges,” he said.
An FTA with China is not currently on the agenda,”The issue of an FTA with China is extremely complex and must be assessed carefully, considering the interests and potential consequences for different industries. And since this is a Eurasian track, the stance of not only Russia but also other [EAEU] member states is important. Therefore, we understand the need for a balanced and very cautious approach to evaluating the possible implications,” he said.
“Our trade turnover with China is growing well, and the absence of an FTA is certainly not the main factor holding back further growth. Issues related to payment systems and logistics infrastructure are at least as important, if not more so in my opinion, in influencing trade figures than the average import tariffs, which are relatively low – around 4.5%. We are approaching this issue in a sufficiently balanced and careful manner. While discussions are ongoing, they cover a broad range of topics, and I would not consider this a top priority,” Ilichev said regarding the prospects of an FTA with China.
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