News / Business

EEU seeking trade deal with China

Tuesday, 31 May 2016 6:14 PM [ Last Update: Tuesday, 31 May 2016 6:14 PM ]

Russia's First Deputy Prime Minister Igor Shuvalov says the Eurasian Economic Union (EEU) is trying to seal a trade deal with China.

Russia said on Tuesday that an economic union that it is leading together with several key CIS states is trying to seal a trade deal with China.

Russia's First Deputy Prime Minister Igor Shuvalov has told reporters that the planned deal between Eurasian Economic Union (EEU) and China could be finalized within two years, Reuters reported.

Shuvalov compared the move with what the US is trying to achieve with the European Union through a so-called Transatlantic partnership agreement. He emphasized that efforts to that effect are going to be “very difficult”.

The Russian official further emphasized that the decision was taken by the presidents of member states and former Soviet republics Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan who met in Kazakhstan.

Shuvalov said Beijing wanted the EEU to cut customs duties on Chinese goods or even remove them completely, but no decision has been taken within the bloc on whether to do so.

"We will work on this matter in order to ensure the balance of mutual interests," he told reporters in the Kazakh capital Astana.

The official further added that negotiators would first focus on non-tariff barriers.

Russia and Kazakhstan, the two biggest economies in the EEU, mostly supply commodities such as oil and metals to China and import goods ranging from textiles to cars and electronics.

Another major oil exporter, Iran, "could potentially become a member of such a partnership", Shuvalov said.

The EEU at its current capacity has a combined population of 170 million people and a gross domestic product of $2.7 trillion.

The bloc which began functioning on 1 January 2015 is being considered as a major economic force to challenge the might of the European Union and the US.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk