Jaishankar flags challenges that tariffs pose to India-Russia trade , Pg10

Key Highlights:

• External Affairs Minister S. Jaishankar addressed tariff and non-tariff trade barriers affecting India-Russia trade in Moscow.
• The call for an "early conclusion" of a Free Trade Agreement between India and the Eurasian region was emphasized.
• The remarks were made at the 26th Session of the India-Russia Inter-Government Commission for Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC).
• India's trade with Russia increased from $13 billion in 2021 to $68 billion in 2024-25.

Detailed Insights:

• S. Jaishankar highlighted the need to remove bottlenecks in logistics, promote connectivity, and ensure smooth payment mechanisms to enhance trade relations.
• The meeting in Moscow finalized the terms for the India-Eurasian Economic Union Free Trade Agreement, aimed at facilitating overland trade between Russia, China, India, and Central Asian countries.
• The geopolitical context, including trade-related concerns in India-U.S. relations, was acknowledged, with leaders maintaining close engagement.
• The bulk of the trade increase between India and Russia is attributed to hydrocarbon supplies from Russia to India.

Key Concepts Involved:

• Tariff barriers: Taxes or duties imposed on imported goods, increasing their cost.
• Non-tariff barriers: Trade restrictions like quotas, regulations, or standards that limit imports.
• Free Trade Agreement: An agreement between countries to reduce or eliminate trade barriers.