New Delhi: Russian President Vladimir Putin has said that India and the Eurasian Economic Union, EAEU, are intensifying talks on trade liberalisation. He told, "We are in talks to liberalize trade agreements with India."
According to Vladimir Putin, there has already been a record $69 billion trade between the two sides. In such a situation, the question arises whether this will make imports cheaper, encourage Indian exporters and reduce dependence on western countries.
EAEU includes five countries
The headquarters of the EAEU is in Moscow. It includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia as member countries. This organization works on free movement of goods, services, capital and labor between member countries.
Moscow’s biggest priority is to strengthen cooperation
At the supreme meeting of the Eurasian Economic Council on Friday, Putin said that strengthening cooperative relations with EAEU countries is Russia’s biggest priority. he insisted, "I want to emphasize that strengthening cooperative relations with all countries of the Eurasian Economic Union is a top priority for Russia."
President Putin said that the activities of the EAEU are also being paid a lot of attention abroad. Many countries and organizations are showing interest in cooperating with the association.
Most transactions take place in national currencies
The President said that common markets for goods, services, capital and labor have almost been formed in the EAEU. He told, "Almost all transactions between our countries are conducted in national currencies.
Thus, mutual export and import transactions are protected from external influences and negative trends in global markets." This reduces dependence on the dollar and member countries avoid economic shocks.
Effective economic union formed in 12 years
Putin said that a full-fledged common economic zone is being formed in the EAEU in a phased manner. He described the EAEU as an effective integration union. Putin reminded, "Exactly 12 years ago, on this day, May 29, 2014, the Treaty Establishing the Eurasian Economic Union was signed in Astana. The continuous and tireless joint work carried out by our countries to implement this document has made it possible to create a truly effective integration union."
Negotiations on a free trade agreement between India and the EAEU have been going on for a long time. If this agreement is reached then Indian exporters of pharma, engineering goods, textile and agri products can get a bigger market. At the same time, importing crude oil, fertilizers and diamonds from Russia may become cheaper. This step will help in diversifying India’s trade and reducing its dependence on the West.
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