India and Russia-led EAEU Initiate Formal Trade Pact Negotiations to Diversify Markets

Commerce and Industry Minister Piyush Goyal announced that India and the Eurasian Economic Union (EAEU) will begin formal trade agreement discussions on Wednesday. The EAEU, led by Russia, includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan. On August 20, both parties signed the terms of reference for this agreement. The talks aim to diversify markets for Indian businesses, including MSMEs, farmers, and fishermen.

Trade Talks with Global Partners

India is also exploring a trade pact with the Southern African Customs Union (SACU), which consists of South Africa, Namibia, Botswana, Lesotho, and Eswatini. SACU is recognised as the world's oldest customs union. Additionally, discussions are underway for the second phase of a preferential trade agreement with Mercosur. Mercosur is a Latin American trading bloc comprising Brazil, Argentina, Uruguay, and Paraguay.

The terms of reference signed on August 20 outline an 18-month work plan. This plan is designed to help Indian businesses access new markets amid high tariffs from the US. The development is crucial as India seeks to expand its export destinations. Goyal mentioned that these efforts are part of a broader strategy to reduce dependency on traditional markets.

Potential Collaborations with Israel

Negotiations with Israel are also set to begin soon for an early harvest trade agreement. India is eager to partner with Israel in sectors like agricultural technology, innovation, mobility, and services. These collaborations aim to enhance bilateral trade and strengthen economic ties between the two nations.

Piyush Goyal highlighted the importance of these negotiations in diversifying India's trade portfolio. By engaging with various international partners, India aims to secure better market access for its products and services. This approach is expected to benefit multiple sectors within the Indian economy.

Overall, these initiatives reflect India's proactive stance in expanding its global trade relations. By pursuing agreements with diverse regions such as EAEU, SACU, Mercosur, and Israel, India aims to bolster its economic growth and resilience in the face of global challenges.

With inputs from PTI