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EAEU’s industrial breakthrough requires production cooperation and innovative projects

EAEU’s industrial breakthrough requires production cooperation and innovative projects


Problems and prospects of industrial cooperation in the Eurasian Economic Union (EAEU) and tools for developing interaction between entrepreneurs were discussed by participants of the Eurasian Industrial Congress “Integration”, held on October 15 in Moscow. The discussion was attended by Members of the Board of the Eurasian Economic Commission (EEC). The initiative to hold the Congress comes from business representatives of the Union States interested in increasing effective and productive cooperation and creating high-tech production associations demanded by the market.

Opening the Congress, Sergey Glazyev, Moderator of the Plenary Session and Member of the Board – EEC Minister in charge of Integration and Macroeconomics, noted the successes achieved in increasing mutual trade, joint investments and improving the efficiency of enterprises working in the EAEU common market. In his opinion, this testifies to the accuracy of decisions taken by the Heads of State on the Eurasian integration.

“The general framework for the common economic space functioning has been defined, and it really works. At the same time, we are still at the beginning of this difficult path, whereon many obstacles have to be overcome in order to build a modern highly efficient economy on the basis of a new technological wave. This cannot be done without developing a science-based strategy for industrial growth,” Sergey Glazyev stressed. “The main question we are concerned with today is how this space is used by our entrepreneurs. We should think about introducing more goods manufactured by our enterprises to the common market of the Eurasian Economic Union. This is based on production cooperation, creation of joint ventures and implementation of innovative projects.”

He added that the EAEU was actively developing cooperation with third countries and integration associations. In particular, an Agreement on Free Trade Area (FTA) with Singapore has been signed, an Agreement on Trade and Economic Cooperation with China and an Interim Agreement leading to the formation of a FTA with Iran will soon come into force and an FTA Agreement with Serbia is being prepared for signing.

Alexander Subbotin, Minister in charge of Industry and Agriculture of the EEC, focused on cooperation between the EAEU countries and China in the real economy. Creation of a common digital space in industry and agriculture, localization of technologies as well as effective cooperation in scientific, technical and innovative spheres should be the key propriety areas.

“The Commission is working together with the parties to create a map of industrialization, which we will present at the next meeting of the EEC Council in November,” Alexander Subbotin stressed. “This document will allow defining mechanisms of interaction between national governments, financial and banking structures. The industrialization map will identify those areas wherein the attraction of foreign investment and technology will be most appropriate both from the point of view of our economies’ development and the Union integration. This will be the basis for a more balanced dialogue with China.”

Viktor Nazarenko, Minister in charge of Technical Regulation of the EEC, stated the need to remove technical barriers to trade. According to him, it is required to solve three problems in order to ensure the effective development of industrial cooperation: protect the domestic market from unsafe products, remove trade barriers and continue with joint creation of competitive products for entering foreign markets.

“We are working to ensure that the EAEU level of requirements for products shall be as close as possible to international requirements. This is not just the adoption of standards and regulations; it is the preparation of our industry, technological infrastructure of enterprises, improvement of product quality and organization of control. It is easy to accept the document; it is difficult to meet these requirements. The industry must prepare for these requirements to be achieved,” Viktor Nazarenko expressed confidence.

Karine Minasyan, Minister in charge of Internal Markets, Information Support and Information and Communication Technologies of the EEC, noted primary trends in transforming the industrial sector. She drew particular attention to the increase in the share of digital services and “smart” goods and the fact that all products merged into the “digital technology”, and the main subjects of digital transformation were digital platforms and ecosystems that would determine competitiveness, including in industry.

“When it comes to platforms, we understand that all platforms must be trans-cross-industrial, and all digital ecosystems shall be built on two principles: network and data. Within the EAEU, joint projects have begun to be implemented, which include such principles as digital sovereignty of each state, distribution and seamlessness,” Karine Minasyan noted. “We offer a particular vision of mechanisms for interacting with international ecosystems, first of all, by implementing our projects through the Eurasian digital ecosystems. It should be noted that even now there is a need to accelerate development and signing of the Agreement on the EAEU data turnover.”

Timur Zhaksylykov, Minister in charge of Economy and Financial Policy of the EEC, told about close cooperation between the EEC and the business community. The Commission has an Advisory Council on interaction with the EAEU Business Council as well as many Advisory committees, working and expert groups.

“The Institute of regulatory impact assessment of draft decisions made by the Commission is successfully developing. We have a large unit of supranational acts that are regulatory in nature and affect business interests. Since 2015, we have been assessing the regulatory impact of these acts, and today we are also assessing the actual impact of the acts already adopted. This ensures that we get a feedback mechanism with business and try to make regulation more effective,” Timur Zhaksylykov noted.

The meeting was attended by representatives of industrial enterprises of the Russian regions, legislative and executive authorities, scientists and leading international experts. The meeting participants proposed to further develop the Eurasian integration. In particular, Andrey Belyaninov, Chairman of the Board of the Eurasian Development Bank, voiced the idea of expanding the EEC powers.

For reference

The Eurasian Industrial Congress “Integration” is a new international discussion platform for discussing topical problems and prospects of industrial cooperation in the EAEU and issues on supplying industrial goods to the EAEU common market and markets of third countries as well as developing effective tools for effective integration and development of interaction between entrepreneurs in the EAEU and friendly countries.