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​EEC Minister Karine Minasyan: “Digital traceability increases self-discipline and trust, which serves a basis for barrier-free environment in the EAEU internal market”

​EEC Minister Karine Minasyan: “Digital traceability increases self-discipline and trust, which serves a basis for barrier-free environment in the EAEU internal market”

Is the free movement of goods, services, capital and labor in mutual trade a myth or a reality? This topic was debated during the discussion unleashed on September 26 at the session “Internal market of the EAEU - myths and realities” within the “Eurasian Week – 2019” forum.

The speakers were Karine Minasyan, Member of the Board – Minister in charge of Internal Markets, Informatization, Information and Communication Technologies of the Eurasian Economic Commission (EEC), Ilya Chyorny, Director of the EEC Department for the Functioning of Internal Markets, Varos Simonyan, Deputy Minister of Economy of the Republic of Armenia, Oleg Pankratov, Adviser to the President of the Kyrgyz Republic, and Kubatbek Rakhimov, Adviser to the Prime Minister of the Kyrgyz Republic, and others.

The participants analyzed the existing obstacles in the EAEU internal market and assessed the EEC’s current capabilities to eliminate them.

The EEC Minister Karine Minasyan noted that there was a positive trend – the number of obstacles was constantly decreasing. Most of the barriers identified in the internal market have existed for a long time, and the Commission is removing them step by step. According to the Minister, the reason for the barriers is the lack of agreed policies within the Eurasian Economic Union (EAEU).

At the same time, the session attendees concluded during the discussion that further harmonization of the EAEU policies was a long-term task, and the existing barriers required immediate elimination.

According to Georgy Petrov, Adviser to the President of the Chamber of Commerce and Industry of the Russian Federation (CCI RF), “mutual trade of the EAEU countries is the main integration element”. The existing obstacles damage integration, trade, transport and logistics potential as well as industrial cooperation of the Member States.

It is vital for business to expand the Commission’s powers, allowing it to take all necessary measures to promptly resolve problematic issues in the Union’s internal market. In this case, the Commission will become a more effective tool for creating a common economic space.

Increasing the EAEU participants’ trust in each other and placing an emphasis on consolidated decisions within the framework of state control are recognized as important factors in developing competitiveness in the Union’s single market. And according to the discussion participants, it is they who can help the EAEU countries to move to a new level of economic cooperation.

The session participants noted that the low level of trust between the EAEU countries and the business community was a challenge for implementing the principle of “four freedoms”. Mutual trust as a condition for effective functioning of the internal market depends on the countries’ self-discipline, compliance by economic entities with the rules and obligations stipulated by the Union’s law and national legislation, and transparency of interaction between entities.

The participants discussed the importance of digitalization in ensuring free movement of goods, services, capital and labor. The implementation of common projects within the framework of digital transformation was announced as one of the promising mechanisms for developing the common economic space. In particular, it concerns mutual recognition of electronic signatures and certificates of origin, ensuring digital transparency of economic cooperation participants.

“We need to change processes to ensure business transparency to supervisory authorities, and they should not burden its activities. If we trace products from the manufacturer to the consumer, no additional documents, certificates and other evidences shall be required. Therefore, the main way to remove obstacles within the Union is, first of all, digital transformation of state supervision”, - Karine Minasyan is convinced.

Also, the importance of industrial cooperation to remove obstacles was the issue repeatedly raised by business representatives during the session.

Alexander Murychev, Executive Vice President of the Russian Union of Industrialists and Entrepreneurs (RUIE) emphasized: “One of the problems of our countries is that their economic model is based on the export of raw materials and commodities. States are not interested in trade within the Union because of this”.

“We have been creating the EAEU in order to reindustrialize our economies and increase exports of our industrial products to third countries”, – pointed out Kubatbek Rakhimov, Adviser to the Prime Minister of the Kyrgyz Republic.

The session participants presented their proposals to amend the Treaty on the EAEU with the aim of including reindustrialization of the Member States and development of industrial exports in the Union’s tasks. “We must not only regulate together but also create together”, - Karine Minasyan invited.
For reference

The “Eurasian Week” forum is an annual event arranged by the EAEU countries and the Eurasian Economic Commission. In 2019, the forum takes place in the city of Bishkek, capital of the Kyrgyz Republic. The event’s agenda is focused on discussing the outcomes of the fifth anniversary of the Treaty on the Union. The Eurasian Week’s program implies more than 20 platforms to be arranged on three tracks: strategic, partner, and youth. More than 2000 persons are expected to take part in the forum.

For more information, please visit the Eurasian Week’s website