EURASIAN ECONOMIC UNION (EAEU)
Why in News?
India and the Eurasian Economic Union (EAEU) have signed the Terms of Reference, marking the formal commencement of Free Trade Agreement (FTA) negotiations to establish a long-term framework for trade cooperation.
Potential Gains from an India–EAEU FTA:
- Economic Upsides:
- Trade Growth: The agreement could unlock unexplored trade avenues, boost investment flows, and create a long-lasting India–EAEU economic partnership.
(Example: India–EAEU bilateral trade touched USD 69 billion in 2024, registering a 7% rise over 2023). - Wider Market Reach: Greater access to Eurasian markets would help Indian exporters, especially in the context of rising US tariff barriers, and enable diversification across new regions and sectors.
- Boosting Competitiveness: The FTA would provide Indian businesses, particularly MSMEs, an edge in countering challenges from non-market economies.
- Energy Security: With its vast reserves of natural resources, the EAEU particularly Russia can strengthen India’s energy basket.
(Note: Russia alone contributes 35–40% of India’s crude imports by volume today).
- Strategic value: Deepening engagement with a Russia-led grouping supports India’s strategy of multi-alignment, balancing ties across global power blocs.
About Eurasian Economic Union (EAEU):
- An international organization for regional economic integration in the post-Soviet region.
- Origin:
– Treaty Signed: 29 May 2014
– Came into Force: 1 January 2015 - Objectives:
– Ensure free movement of goods, services, capital, and labour.
– Pursue coordinated, harmonized, and unified policies in select sectors under the Treaty and related agreements. - Members: Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia
Institutional Structure:
1. Eurasian Economic Commission (EEC):
– Permanent regulatory body.
– Ensures functioning and integration of the EAEU.
– Headquarters: Moscow.
2. Presidency: Rotational system; one member-state chairs the Union each year.
3. Court of the EAEU:
– Established in 2015, replacing the EurAsEC Court.
– Responsible for dispute resolution and interpretation of EAEU laws.
– Headquarters: Minsk.
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