The Eurasian Economic Union (EAEU) was established in 2015 to promote economic integration among its member states. The union comprises of Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. One of the critical objectives of the EAEU is to create a single market for goods, services, capital, and labor within its borders.
One way the EAEU aims to achieve this objective is through free trade agreements (FTAs) with other countries and regions. These agreements aim to reduce or eliminate tariffs, quotas, and other trade barriers on goods and services exchanged between the parties. By doing so, the FTAs can create a more open and predictable trade environment, which can help to increase trade and investment flows between the EAEU and its partners.
So far, the EAEU has signed several FTAs with countries such as China, Iran, Serbia, Singapore, and Vietnam. The most recent agreement, signed in 2020, was the EAEU-Vietnam FTA. This agreement aims to strengthen economic ties between Vietnam and the EAEU member states by removing trade barriers and improving market access for goods and services.
The EAEU-Vietnam FTA covers a wide range of trade-related issues, such as trade in goods, rules of origin, customs procedures and administration, trade facilitation, sanitary and phytosanitary measures, technical barriers to trade, and intellectual property rights. It also includes a dispute settlement mechanism to resolve any disputes that may arise between the parties.
One of the benefits of the EAEU-Vietnam FTA is the increased market access for businesses operating in the EAEU and Vietnam. The agreement provides tariff reductions or eliminations on a range of goods and services, including agricultural products, textiles, and industrial goods. This can lead to increased trade flows and opportunities for businesses in both regions.
Another benefit of the EAEU-Vietnam FTA is the harmonization of standards and regulations. The agreement aims to align the regulatory frameworks of the EAEU and Vietnam to facilitate trade and investment flows. This can help reduce the costs of compliance for businesses operating in both regions and create a more level playing field for competition.
In conclusion, free trade agreements are an essential tool for the EAEU to achieve its objective of creating a single market within its borders. The recent EAEU-Vietnam FTA is an example of how these agreements can promote trade and investment flows between the EAEU and its partners. As the EAEU continues to sign FTAs with other countries and regions, businesses operating in the region can benefit from increased market access and a more predictable trading environment.