On creation of Free Trade Zone with China we can talk not earlier 2020

Eurasian economic commission announced beginning of negotiations with the PRC on trade and economic cooperation agreement

The question is about launching of negotiations on drafting a comprehensive agreement on partnership and cooperation with China as well as on development of creation of free trade zone.

Negotiations on creation of Free Economic Zone (FEZ) between EAEU and China is a prolonged and complicated matter which is unlikely to be resolved before 2020 even on the availability of political will of both parties. Most likely, negotiations can last for 10 years; this being any EAEU country can hamper the process.

FCZ with China is unlikely to produce a serious economic benefit. According to our estimates, Chinese economic benefits from FEZ with Russia are estimated only at $ 5-6 bn which is insignificant comparing the size of the Chinese economy (over $17 trillion).

It is unlikely that an agreement on zeroing of all mutual duties between Russia and China will be signed because both Chinese and Russian produces will be against it. One can talk about a reduction of duties and not on all of them but solely on some of them.

Alexander Knobel – head of International trade department