Russia, India to set up FTA with Customs Union

February 26, 2014, 2:54 pm

BRICS members Russia and India on Wednesday announced the setting up a Joint Study Group for a Comprehensive Economic Cooperation Agreement (CECA) with member-countries of the Customs Union, which includes Russia, Kazakhstan and Belarus.

This was announced after high-level talks between Indian Commerce Anand Sharma and Russian Deputy Prime Minister Dmitry Rogozin in New Delhi.

“Seeking to further strengthen the special and privileged strategic partnership and specifically to enhance the economic and investment cooperation between India and Russia on a bilateral basis, we have identified investment projects and proposals for special attention,” said Sharma.

New Delhi has requested Moscow to steer the process for CECA within the Eurasian Economic Commission.

The Eurasian Economic Commission is the permanent regulatory agency of the Customs Union and the Eurasian Economic Community.

The Customs Union formally came into existence in 2010 with the implementation of the common economic space that provides for free movement of goods, services and people.

Some Indian products have cleared market access issues in the Custom Union, the statement added.

Both sides also reviewed the progress of identified ‘priority projects’.

These projects include “establishment of joint projects for manufacturing light helicopters Ka-226T; establishment of joint stock Indo- Russian enterprises for manufacturing light helicopters Ka-226T; JSC United Aircraft Corporation preparation of participation in tender for Indian program to develop civil aircraft” said an Indian Commerce Ministry statement.

India is the largest importer of Russian arms and the two nations share traditional ties linked by defence and military cooperation, civil nuclear energy, space, culture and education.

An Indo-Russian joint project plant construction for manufacturing butyl rubber with capacity of 100000 tons per year at a production site in India will also be expedited said the Ministry on Wednesday.

Russia on Wednesday also “assured to expeditiously resolve the issue of recognition of Government approved Indian labs for enabling export of bovine meat from India” said the statement.

TBP