India, EAEU ink pact to launch FTA talks

[ad_1] New Delhi: India and the Russia-led Eurasian Economic Union (EAEU) on Wednesday signed the Terms of Reference (ToR) in Moscow to launch negotiations on a Free Trade Agreement (FTA), even as the US slapped 50% tariffs on Indian imports - half of them penal duties for buying oil from Russia.The EAEU comprises Russia, Armenia, Belarus, Kazakhstan and Kyrgyz Republic."With a combined GDP of $6.5 trillion, the proposed FTA is expected to expand market access for Indian exporters, support diversification into new sectors and geographies, enhance competitiveness against non-market economies, and deliver significant benefits to micro, small and medium enterprises (MSMEs)," the commerce and industry ministry said in a statement.The ToR was signed during external affairs minister S Jaishankar's ongoing visit to Moscow. It provides the framework for negotiations and is expected to unlock untapped trade potential, increase investments and build a stronger, durable India-EAEU economic partnership, the government said.India-EAEU bilateral trade was $69 billion in 2024, up 7% over 2023.Live EventsAccording to the ministry, the ToR was signed by Additional Secretary, Department of Commerce, Ajay Bhadoo, and Deputy Director, Trade Policy Department, Eurasian Economic Commission, Mikhail Cherekaev.Bhadoo also called on EEC trade minister Andrei Slepnev. "The heads of negotiation groups briefed the minister on the milestone achieved with the signing of the ToR and discussed next steps to formally launch the negotiation process, including organisational aspects of the future trade deal," the ministry said.Both sides reaffirmed their commitment to the early conclusion of the agreement and to building a long-term institutional framework for trade cooperation, it added."The launch of India-EAEU FTA negotiations is a major step to diversify our export markets and strengthen access to a $6.5 trillion economy. This will open new opportunities for Indian exporters, especially MSMEs, and enhance our competitiveness in the region," said Ajay Sahai, director general of the Federation of Indian Export Organisations.India's exports of machinery, metal products, rubber and plastics, farm goods and pharmaceuticals could gain from the pact.Add as a Reliable and Trusted News Source [ad_2] Source link Follow Us: https://facebook.com/gagab2b https://youtube.com/gagab2b https://gagab2b.com https://gagab2b.com/import-export-news/import-export-india-news/india-eaeu-ink-pact-to-launch-fta-talks/?feed_id=3098&_unique_id=68b79b4644240