India-EA Agreement: A Comprehensive Overview
The India-EA (Eurasian Economic Union) agreement is a trade pact that aims to boost economic cooperation between India and the EAEU, a political and economic union of five member states, namely Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia.
This agreement, signed on April 12, 2021, is an important step towards strengthening economic ties between the two regions. The pact covers a wide range of sectors, including agriculture, pharmaceuticals, textiles, and machinery, which are of great importance to both India and the EAEU.
What does the agreement entail?
The India-EA agreement promotes the development of trade and investment between India and the EAEU. It aims to reduce barriers to trade, create more opportunities for businesses, and facilitate the exchange of goods and services between the two regions.
The pact includes provisions for the reduction or elimination of customs duties on a wide range of goods traded between the two regions. Certain agricultural products, such as apples, pears, and grapes, are to be exempt from tariffs, while duties on other goods, such as meat and dairy products, will be phased out over time.
In addition, the agreement provides for the mutual recognition of quality standards, certifications, and testing procedures, which will make it easier for businesses to access each other`s markets. It also includes provisions for the protection of intellectual property rights, which is crucial for the growth of the digital economy.
Benefits of the India-EA agreement
The India-EA agreement is expected to bring a number of benefits to both India and the EAEU. For India, it presents an opportunity to expand its exports to new markets and diversify its trade relationships beyond its traditional partners.
For the EAEU, the pact provides access to India`s large and growing market, as well as the opportunity to increase trade and investment in sectors such as pharmaceuticals, renewable energy, and information technology.
The agreement is expected to lead to an increase in bilateral trade between India and the EAEU, which was valued at $17.7 billion in 2020. This increase in trade is likely to create new jobs and economic opportunities for businesses in both regions.
The India-EA agreement is an important development in the relationship between India and the EAEU. It aims to promote greater economic cooperation between the two regions, reduce trade barriers, and create new opportunities for businesses in a range of sectors.
The agreement is expected to bring a number of benefits to both India and the EAEU, including increased trade, investment, and job creation. As such, it represents an important step towards greater economic integration and cooperation between these two dynamic regions.