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EEC elaborates jointly with the EAEU countries a package of measures to preserve macroeconomic stability in light of spreading COVID-19

EEC elaborates jointly with the EAEU countries a package of measures to preserve macroeconomic stability in light of spreading COVID-19

3/19/2020
The Eurasian Economic Commission, jointly with the EAEU countries, is elaborating a package of response measures to preserve macroeconomic stability, mutual trade in goods and free movement of labor in the Eurasian space in light of coronavirus pandemic. This was stated by Andrey Slepnev, EEC Minister in charge of Trade, at a regular meeting of the Business Dialogue with representatives of the business community of the Eurasian Economic Union States.

 

Andrey Slepnev has noted that nowadays, when global and domestic markets drop, it is required to re-evaluate our strategies and policies, wherefore the EEC plans to work out, jointly with the business, and take appropriate measures to promptly respond to the current economic environment and build a system work to stabilize the situation.

 

The high priority measures will include point control in the sphere of customs and tariff policy for selected commodity groups, monitoring and tracing coordination of measures aimed at preventing the internal market disintegration as well as measures aimed at stabilizing the situation in the financial market to avoid discrepancies in exchange rates of the EAEU countries to reduce the prevailing foreign exchange risks.

 

Moreover, Andrey Slepnev has noted that "new opportunities are being created in a number of markets, for example, in view of stoppage in production by the Chinese manufacturers for some commodity items. Markets suffer a shortage of production, and thus it makes sense to identify these niches and see what potentials are opened up there”. He has also pointed out that the current market situation builds added momentum for digitizing trade, not only e-commerce in goods, but also business processes in general: transit and B2B interaction.

 

The first priority steps shall include customs and tariff regulation measures that will help ensure vital medical supplies to control and prevent spreading coronavirus infection. The list of these products is being finalized and will be formed in the near future. Besides, compensation for risks of production chains in national markets and export-oriented companies are considered as short-term measures. For the purpose, it is planned to reduce the import tariff for a number of goods (components, raw materials and materials), that will contribute to compensating for current and upcoming losses of production companies to maintain their stable operation.

 

The EEC has also formed a working group to elaborate coordinated measures and recommendations to preserve macroeconomic stability, mutual trade in goods and free movement of labor across the EAEU in light of spreading COVID-19. 

 

The business community representatives suggested considering additional measures to stabilize the economic situation in the Eurasian space, including measures to reduce the risk of volatility of national currency rates with transiting to settlements in the EAEU Member States’ national currencies. The business also put forward an initiative to review the list of sensitive agricultural products, taking into account the changed agricultural situation in the EAEU internal market.

 

"We will take on the proposals submitted by the Union countries. We will discuss debottlenecking and possibilities”, - Andrey Slepnev noted. The Minister also requested the business community to actively interact with national governments and forward ideas, proposals and schemes to regulate the market economic situation in a prompt manner.

 

Furthermore, during the Business Dialogue session, the attendees discussed marking goods by means of identification, improving the EAEU Customs Code with due regard to its practical implementation and restrictive measures in the sphere of technical regulation used by the countries being the EAEU trading partners.​