Free trade zone with India may add $2.7 billion to EEU’s total GDP

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BISHKEK (TCA) — The Eurasian Economic Union (EEU) comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia could add as much as $2.7 billion to its GDP in the long term from creating a free trade zone with India, Eurasian Economic Commission (EEC) Trade Minister Veronika Nikishina said at the St. Petersburg International Economic Forum (SPIEF) on June 1, Sputnik news agency reported.

In March, Russian Industry and Trade Minister Denis Manturov said that the EEU and India were working on a free trade agreement.

“The feasibility study of the free trade zone agreement with India showed that the overall GDP increase of the bloc’s member states could come to $1.5 billion in the short term and $2.7 billion in the longer-term outlook,” Nikishina said during a business breakfast called “EEU-India: Strategic Partnership.”

She added that the free trade zone enables extremely important competitive advantages through “qualitative change of the terms of entering the markets of our countries”.

“For each of the six countries, the five EEU member states and India, economic modeling at the very least shows serious advantages provided by signing the free trade agreement,” Nikishina added.

The EEU is an international organization comprising Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. It aims to encourage regional economic integration through the free movement of goods, services, and people within the union.

Sergey Kwan

TCA