Eurasian economic integration is performed in close cooperation with the business community, with business playing a key role in this. The Eurasian Economic Commission has established a number of structures to facilitate business and new mechanisms are being elaborated for its active development. The complicated political situation has accelerated rather than halted development. Nevertheless, business needs support from the state and financial structures, and barriers on the cross-border market need to be lifted, an energy market created and a solution found to a number of other challenges. This opinion was expressed by the participants in the session held as part of the Eurasian Economic Forum “Business as a Driver of Eurasian Economic Integration: Challenges and Prospects”.
KEY CONCLUSIONS
Interests of the Business Community Play a Key Role in Eurasian Economic Integration
“The interests of the business community constitute the basis for integration cooperation between states. […], cooperation ties to be formed, investments to grow, and trade relations to be developed. By the end of last year, mutual trade within the EAEU [Eurasian Economic Union. — Edit.] had increased by 14%, and the accumulated volume of mutual investments in the EAEU at the beginning of 2022 amounted to more than 18 billion US dollars. […] An important contribution by the business community [to strengthening economic ties between the EAEU countries. — Edit.] is development of investment and cooperative collaboration”, Bakytzhan Sagintayev, Member of the Board (Minister) for Economics and Financial Policy of the Eurasian Economic Commission.
“It is obvious that, in the new reality, the Eurasian Economic Union is a key factor in economic sustainability ... Our business survived thanks to integration, primarily with the Russian Federation,” Aliaksandr Panasiuk, First Deputy Chairman of the. Republication Association of Enterprises Industry BelAPP.
PROBLEMS
Barriers to Entering Cross-Border Markets in the Transportation of Goods and Double Control of Documents
“There are many challenges on the cross-border market. […] For example, freedom of movement of goods — there are a number of bottlenecks. […] The question of trust and mistrust in the customs authorities of one of the countries exists — and sometimes this is a stumbling block. Secondary, tertiary checks are also performed on goods that have already undergone certain procedures under the contract... [Conditions must be created in order to — Edit.] make provision for crossing borders without additional measures and, on domestic markets, each country can decide whether to re-check the quality or compliance with certain requirements. […] Certificate of quality... also a big problem is... whether the body that issues the corresponding certificate of quality performed certain procedures correctly. These bodies should work in conjunction with one another... but stay clear of the business community”, Danil Ibraev, President, Kyrgyz Union of Manufactures and Entrepreneurs.
“Goods transit must be provided for by lifting barriers... in order to improve the existing infrastructure so that goods pass along the transport corridor. […] Business development tools must be made more efficient. […] The issue of synchronising introduction of marking and development of a systematic approach must be resolved for further cooperation, as must that of the practicability of introducing labelling ... but this is a task for the state. It is not always so beneficial for the business community, so this could turn out to be a barrier to development of integration,” Timur Zharkenov, Deputy Chairman, Member of the Board, ‘Atameken’ National Chamber of Entrepreneurs of the Republic of Kazakhstan.
Insufficient Funding of Business and Delayed Creation of Common Energy Markets
“[There is — Edit.] a lack of information about investment projects among both investors and the business community... Creation of a platform and industry base of activities in certain areas... will allow potential partners for further cooperation to be identified. […] [Another challenge is — Edit.] poor engagement of financial structures in implementing business projects”, Armen Nersisyan, Founder, Director, Credit Partner; Member of the Audit Commission, Union of Industrialists and Entrepreneurs of Armenia (UIEA).
SOLUTIONS
Development of KPI for Business Integration and Creation of Free Trade Zones
“Last year, the Eurasian Economic Commission developed a KPI system characterizing the impact of integration on the business community. Among the indicators taken into account are the volume of mutual trade in goods and services, as well as mutual investments. The first results of monitoring of these indicators will be available during this year. The KPI system will enable businesspeople to assess the intensity of Eurasian economic integration, which is a key aspect for the business community. […] Transition to export orientation, access to foreign markets, geographical expansion, and an increase in export volumes of supplies of the Union's goods seem promising. […] The main instrument for trade with third countries is, of course, establishment of free trade zones,” Bakytzhan Sagintayev, Member of the Board (Minister) for Economics and Financial Policy of the Eurasian Economic Commission.
Creation of an International Business Platform for Operational Communication, Focus on the Best Practices in the EAEU Area
“Better conditions for doing business must be created through integration processes in the Eurasian region... the dialogue with the business community must be expanded in joint elaboration of existing challenges”, Bakytzhan Sagintayev, Member of the Board (Minister) for Economics and Financial Policy of the Eurasian Economic Commission.
“Best practices in individual countries must be used as guidelines... We see that we are lagging behind the domestic practices of many other countries. […] We need to declare ourselves more boldly in all multilateral formats”, Sergey Krasilnikov, Vice President, Managing Director of the International Relations and Integration Directorate, Russian Union of Industrialists and Entrepreneurs (RSPP).
“Insufficient information about the demand for and supply of the requisite goods and services... does not meet the needs of business structures because business environment is very volatile. It would be an effective solution to develop a platform where the relevant suppliers and buyers, and interested companies would be represented by having an opportunity for live communication”, Armen Nersisyan, Founder, Director, Credit Partner; Member of the Audit Commission, Union of Industrialists and Entrepreneurs of Armenia (UIEA).
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