- The Eurasian Economic Union is an international organization for regional economic integration that came into existence on 1st January 2015.
- The EAEU provides for the free movement of goods, services, capital, and labor within its borders.
- It pursues, coordinates, & harmonizes the policies in the sectors determined by the Treaty and international agreements within the Union.
- The member states of the Eurasian Economic Union are,
- The Republic of Armenia,
- The Republic of Belarus,
- The Republic of Kazakhstan,
- The Kyrgyz Republic,
- The Russian Federation.
Headquarter- Moscow
Significance:
The EEU holds considerable geopolitical weight, primarily due to Russia’s influence. By providing an alternative to the European Union, the EEU aims to become a significant economic bloc that can attract other nations interested in closer economic cooperation without the strings attached to EU membership.
Challenges:
Despite its objectives, the EEU faces several challenges, including political disagreements among its members, unequal benefits, and the geopolitical tensions surrounding Russia’s actions in the region.
In summary, the EEU seeks to forge closer economic ties among its members while striving for a geopolitical repositioning in the global economic landscape. It remains to be seen how effective the Union will be in overcoming its challenges to achieve its ambitious goals.
India and the European Economic Union
- India and the five-member Eurasian Economic Union (EaEU), led by Russia, will sign a free trade agreement (FTA).
- This proposed agreement aims to boost India’s exports to the EaEU countries, especially in sectors such as engineering goods, electronics, and agriculture & telecom.
- India has seen reasonable growth in exports to Russia in products like agriculture and engineering until October 2023.
- However, exports of electronics and telecom items have been hit due to Western sanctions on such sales to Russia.
- The Eurasian Economic Union has a combined GDP of around $5 trillion. An FTA would provide preferential access for Indian goods and services to these markets.
- India is also keen to step up its engagement with the resource-rich Russian Far East region.
- Improving connectivity corridors across land and maritime routes could boost bilateral trade further.
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