Headline: EAEU–Indonesia FTA removes tariffs, accelerates BRICS export surge — $36.2M in annual savings for Russia and wider trade boost expected The BRICS export story just got a concrete lift: the Eurasian Economic Union (EAEU) and Indonesia have signed a tariff-eliminating free trade agreement that promises immediate price advantages for Russian exporters and a structural deepening of ties between Eurasia and Southeast Asia. Key facts - The FTA was signed by Russian Deputy Prime Minister Aleksey Overchuk at a Supreme Eurasian Economic Council meeting. - Officials estimate annual savings for Russian exporters of up to about $36.2 million. - The deal is expected to cover roughly 99% of Russia’s current exports to Indonesia. - Negotiations began in December 2022 and included multiple rounds between EAEU and Indonesian officials. - Bilateral trade has risen about 1.3x over the past five years; January–October data for this year show mutual trade up more than 15% year-on-year. Tariff impact and trade outlook - Once fully implemented, Indonesia’s average tariff on Russian goods will fall from 8% to 3.2%, with the vast majority of shipments becoming duty-free. That translates into immediate price competitiveness for Russian products and stronger long-term trade sustainability. - EAEU Trade Minister Andrey Slepnev said the duty cuts will affect roughly $3 billion of trade and projected that trade turnover between the EAEU and Indonesia could double within 3–5 years after the agreement takes effect. He highlighted expected increases in both agricultural and industrial deliveries. Sectors set to benefit Preferential access and tariff elimination apply across a wide range of goods, including: - Industrial and energy products: polymers, fertilizers, energy products, dump trucks, pipes, metals and non‑ferrous metal products, and electrical equipment. - Agricultural products: wheat, flour, milk powder, confectionery, and halal-certified beef and poultry. Why this matters for BRICS and markets - The agreement strengthens EAEU links to Southeast Asia’s fourth most populous country and arrives as Indonesia has grown more active within the BRICS orbit — reinforcing an export surge among BRICS members. - For commodity and industrial supply chains, lower tariffs can accelerate shipments of energy, metals and agricultural goods, altering regional trade flows and potentially affecting pricing dynamics in relevant markets. - Beyond immediate tariff savings, the FTA creates a framework for deeper commercial integration, supply-chain partnerships and expanded market access — outcomes likely to matter to exporters, commodity traders and investors tracking BRICS-driven trade realignment. Bottom line This EAEU–Indonesia free trade agreement is more than a tariff cut: it’s a strategic push to lock in trade growth between Eurasia and Southeast Asia, provide measurable savings for Russian exporters, and turbocharge the broader BRICS export momentum — with implications for commodities, industrial supply chains and regional market competition. Read more AI-generated news on: undefined/news

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