Other BriefingsUAE Begins Fast Track Talks Over Eurasian Economic Union Free Trade Agreement
Bilateral trade Up 60% as Russian & EAEU Businesses Eye Dubai and Abu Dhabi Opportunities
The Eurasian Economic Union (EAEU) countries – Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia have approved the commencement of talks to conclude a free trade agreement between the EAEU and the United Arab Emirates (UAE).
The EAEU took the decision on Friday (December 9) in Bishkek as part of the Supreme Eurasian Economic Council (SEEC), the trade bloc of the Eurasian Economic Commission has stated.
During the talks, the parties are set to transfer discussions to fast track mode, and hold the first round as early as March next year, according to EEC Trade Minister Andrei Slepnev.
“The work of the joint study group has shown that establishing a FTZ with the UAE would create conditions for growth in our supplies of more than 1,300 commodity items in both the industrial sector and the agro-industrial complex,” Slepnev commented.
An agreement with the UAE is under consideration as a way to strengthen the positions of EAEU exporters in the Gulf countries in the context of the Greater Eurasian Partnership and the North-South corridor, the EAEU noted.
The EAEU’s trade turnover with the UAE surged 60.9% over the past year to US$6.3 billion, with imports decreasing 6.8% to around US$418 million and exports soaring 69.4% to US$5.9 billion.
The EAEU has currently concluded a respective FTZ agreement with Vietnam that entered into force on October 5, 2016; with Iran that entered into force on October 25, 2019, as an interim agreement, and talks are underway to establish a full-fledged FTZ; and with Serbia that entered into force on July 10, 2021. The EAEU signed a FTZ agreement with Singapore in October 2019 that has not yet entered into force owing to EAEU countries settling respective bilateral agreements with Singapore. Negotiations on a FTZ agreement with Egypt are being completed, and negotiations with India and Indonesia have been approved. A joint group has been established in order to study the feasibility of concluding a FTZ agreement with Mongolia.
The UAE is a friendly nation to Russian and other EAEU member countries with a relatively easy administrative business environment, low taxes and the ability to open bank accounts. There are direct flights between Dubai, Moscow and St.Petersburg in addition to multiple connecting regional flights throughout the Middle East.
Please contact Maria Kotova at Dezan Shira & Associates Dubai office at dubai@dezshira.com for assistance in the UAE. The firm assists Russian and EAEU investors into the region and has a 30 year track record in handling foreign investment into Asia.
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