Trade and economic cooperation between Eurasian Economic Union (EAEU) member states is growing apace, despite new challenges. However, a number of steps need to be taken in order to make the process more effective and to help those based in the EAEU enter markets in third countries. These include the creation of common trading rules and principles, the implementation of measures aimed at reducing risks for exporters, and the development of new logistics schemes for shipping goods. Those were the conclusions reached at an expert session entitled Fostering Entrepreneurship in the New Environment. The event was held as part of the second Eurasian Economic Forum.
Business ties are being forged across the EAEU thanks in part to support from institutions that have been set up
“Despite all the cataclysms, we can state that the Eurasian Economic Union is enjoying stable development, particularly in economic terms. Last year, trade within the EAEU grew by around 15%; Russia’s trade with the Eurasian Union increased by more than 15%. So, it is our belief that there is mutual interest, and that there have been some decent accomplishments,” Sergey Katyrin, President, Chamber of Commerce and Industry of the Russian Federation.
“When it comes to drafting and implementing trade policy, working with the business community is one of the main areas of focus for our union. <...> Ultimately, the business community are the beneficiaries of free trade agreements, as entrepreneurs and companies from our nations get better access to the markets of third countries and have the chance to enter into joint ventures,” Vladimir Serpikov, Director of the Trade Policy Department, Eurasian Economic Commission.
EAEU member states are in need of a common market and unified rules
“In our opinion, cooperation between chambers of commerce and industry of EAEU member states should focus on ways to get the business community involved in legislative initiatives aimed at improving the business environment, and in the process of defining clear – and most importantly – uniform rules for the EAEU. <...> At this stage, the chambers need to join forces in efforts to collect, analyse, and systematize proposals made by the business community,” Michail Miatlikov, Chairman, Belarusian Chamber of Commerce and Industry.
“It is not only important to consider national companies’ proposals and concerns, but also to raise their awareness of agreements in the pipeline. Publishing preliminary assessments and outlining the benefits of free trade zones can help shape companies’ expectations and encourage them to consider a more active strategy in terms of promoting their products, services, and investments in countries which are set to become partners of our union,” Vladimir Serpikov, Director of the Trade Policy Department, Eurasian Economic Commission.
Barriers hindering the free movement of goods are hampering the development of trade in the EAEU
“Trade involving EAEU member states is done on the internal market and further afield in cooperation with third countries... However, obstacles hindering the free movement of goods, services, and capital within national borders form the main impediments to the development of a favourable economic environment. Removing these restrictions to trade will help drive integration. <...> The removal of said barriers in the union’s internal market is the first matter that needs to be addressed,” Timur Zharkenov, Deputy Chairman, Member of the Board, Atameken National Chamber of Entrepreneurs of the Republic of Kazakhstan.
“Barriers continue to exist within the union. In our case it’s the Verkhny Lars checkpoint. Due to weather conditions or factors beyond our control, cargo can spoil, and vehicles stand still. This is a sore subject for us; it’s a difficult situation. <...> The Economy Ministry has announced the launch of the Batumi–Novorossiysk ferry service. This will be a container ferry service. That will partially resolve the issue, but the problem is still a pressing one,” Karen Ivanov, Vice President, Chamber of Commerce and Industry of Republic of Armenia.
“Domestic mechanical engineers often come up against serious competition from global manufacturers when they try to sell specialized vehicles on the international market. This is due in part to government regulation in foreign markets. I think that we need to respond in kind,” Michail Miatlikov, Chairman, Belarusian Chamber of Commerce and Industry.
Partner countries need to be able to choose the most promising areas of cooperation
“We endeavour to include a chapter on sectoral cooperation in many of our agreements. This usually consists of a list detailing the most promising areas for parties entering into the agreement. <...> The provisions of this chapter allow each of the parties to discuss issues related to market access, and to propose projects that may be of interest to several parties,” Vladimir Serpikov, Director of the Trade Policy Department, Eurasian Economic Commission.
Providing insurance to cover against export risks
“The Eurasian Reinsurance Company is set to open this year. It will offer export credit and investment reinsurance to cover against business-related and political risks... It will complement the work done by national insurance agencies at the supranational level. Its authorized capital is made up of contributions from member states, with its insurance capacity potentially reaching USD 2 billion. <...> This additional insurance capacity should lead to increased trade within the EAEU to the tune of more than USD 6 billion,” Vladimir Serpikov, Director of the Trade Policy Department, Eurasian Economic Commission.
“Armenia’s Chamber of Commerce and Industry has signed a strategic agreement with the Export Insurance Agency of Armenia. We are involved in joint ventures aimed at supporting our exporters. We have decided to focus specifically on supporting small and medium-sized companies, which currently experience the most problems,” Karen Ivanov, Vice President, Chamber of Commerce and Industry of Republic of Armenia.
Implementing new logistical solutions
“We have developed a new logistics route to Moscow which runs through Iran, Turkmenistan, Kazakhstan, and Russia. The first heavy goods vehicles travelled this route just last month. <...> Yes, logistics costs have risen by 25%, but we are working with our colleagues from Turkmenistan to launch reverse cargo flows. It is our hope that we will bring the cost down to a level which is reasonable, and which will allow our exporters to use these logistics,” and Karen Ivanov, Vice President, Chamber of Commerce and Industry of Republic of Armenia.
“There is a project offering accelerated container rail transport and multimodal transport of agricultural products and food from EAEU member states to China and third countries... In 2022 more than 500,000 tonnes of freight travelled this way. A number of major transport, logistics, and trading companies are responsible for running the project. More than 1,200 self-contained refrigerated containers have already been purchased under the project, and the relevant agreements are in place. <...> The export route to China is currently the key one. <...> And a number of North-South corridor routes were launched in February this year,” Alevtina Kirillova, General Director, Eurasian Agrologistics Autonomous Non-Profit Organization on Assistance in the Development of Agro-Industrial Activity.
