GDP growth in the EAEU countries after establishment of the FTA with India could reach up to 2.7 billion US dollars
The total GDP growth of the countries of the Eurasian Economic Union (EAEU) as a result of the conclusion of the free trade area agreement with India could reach 1.4 billion US dollars in the short term, and 2.7 billion US dollars in the long-term. The Member of the Board - Minister in charge of Trade of the Eurasian Economic Commission (EEC), Veronika Nikishina, told about it at the business breakfast "EAEU – India: a strategic partnership", which was held within the framework of the St. Petersburg International Economic Forum on June 1, 2017.
In her speech, Veronika Nikishina said that the leaders of the EAEU countries and India, on the basis of the outcomes of the analysis conducted by a joint study group, decided to start negotiations on a free trade area (FTA) agreement.
According to the EEC Minister, the analysis of trends in mutual trade of the EAEU countries with India showed substantial growth in turnover. In the period from 2012 to 2014, it totaled 11 billion US dollars compared with the volume in the period from 2010 to 2011 that was 9-10 billion US dollars. Subsequently, however, amid crisis economic phenomena, the rate fell again to 9 billion. This suggests that in the long run, with the support of modern instruments of trade policy, trade growth could be very significant.
The most significant potential for export growth as a result of establishment of a FTA could be forecasted in Belarus (20% compared with the current volume), Russia (18%) and Kazakhstan (12%). The cumulative export growth potential both for the EAEU and for India is approximately 18%.
According to calculations made, if removing tariffs after the entry into force of the agreement, the increase in agricultural product exports from the EAEU to India is expected. This applies to cereals, vegetable oils, vegetables, beverage, including bottled mineral water. It also concerns exports of such products of industrial group like fertilizers, machinery and equipment, vehicles, some types of turbojet engines, salt, steel products, timber, chemicals, rubber, plastics.
Press-release at the official Eurasian Economic Commission web-site