UPDATE - EAEU, Thailand Sign Memorandum To Boost Trade, Investment - Statement

MOSCOW (UrduPoint News / Sputnik - 20th November, 2018) The Eurasian Economic Commission (EEC) and the Thai government have signed a memorandum of cooperation with the aim to boost bilateral trade and increase investment, the EEC said in a statement on Monday.

"The EEC and the Thai government have signed a memorandum of cooperation. The document aims to develop collaboration between the Eurasian Economic Union [EAEU] states and the Kingdom of Thailand. It will help increase the trade in goods and services, intensify investment in the future," the statement said.

According to the statement, the two parties intend to cooperate in such areas as regional economic integration, trade policy, customs and technical regulation, energy policy along with harmonizing sanitary and phytosanitary measures.

"The implementation of the memorandum will contribute to strengthening relations between the EAEU countries and Thailand and, for sure, will give an impetus to the development of direct contacts between the representatives of business communities and will finally have a positive effect on the well-being of the citizens of our countries," Tatyana Valovaya, the minister in charge of the main directions of the EEC integration and macroeconomics, said, as quoted in the statement.

According to Tigran Sargsyan, the chairman of the EEC board, by signing the memorandum the EAEU and Thailand have made the first step toward deepening the cooperation in the economic field, which might finally result in the creation of a free-trade zone.

"The negotiations on a free-trade zone formation are very concrete and detailed. Our experience shows that usually the negotiating process with one country might last two or more years as there are plenty of sensitive subjects and, secondly, there is need to harmonize the positions of five countries within the EAEU," Sargsyan indicated.

One of the first events that will be held as part of the signed agreement will be a forum with the participation of the Thai businesses that will be held in Bangkok.

"It is important for us to receive their requests: in which fields they would like to have a closer cooperation with us and to find out what ambitions they have," Sargsyan stated.

Sargsyan also revealed that several dozen countries had asked the EAEU to launch talks on a free-trade zone establishment.

"But our approach toward the issue is balanced, and before answering a question about whether we are ready to proceed with talks on a free-trade zone creation we carry out considerable work, undertake research in order to find out the possible benefits for our countries from the creation of free-trade zones with those countries," Sargsyan stated.

The EAEU, comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, is an organization that encourages regional economic integration through the free movement of goods, services, and people within the union.