The states of the Eurasian Economic Union (EEU) need to increase the volume of mutual trade, reducing the number of existing barriers, Kazakh Prime Minister Alikhan Smailov said on Friday at a meeting of the Eurasian Intergovernmental Council.
"The results of the past year compared to the pre-pandemic year of 2019 show the outstripping growth of mutual trade of the EEU member states compared to trade with third countries. Thus, mutual trade grew by 18% and foreign trade by 15%. However, the share of mutual trade is less than 15% of total trade in goods between our states. Definitely, this figure is insufficient to ensure the stability of the domestic market," said Smailov.
According to him, the volume of mutual trade in other similar integration associations is more than 40%. "In order to increase mutual trade, a prerequisite is to create a barrier-free environment. I have to note that from year to year a significant part of the issues related to restrictions of access to the market of partners is not solved," the prime minister of Kazakhstan explained.
GDP growth
Smailov said that the EEU GDP growth may exceed 3% in 2022. "The economies of the EEU member states recovered quite actively last year and reached the pre-pandemic level. By the end of 2021, the Union's GDP growth was 4.5%. At the same time, experts predict a slowdown of global economic growth in 2022. The growth of the Union's GDP this year is expected to be 3.1%," he said.
According to him, geopolitical tensions and high inflation continue to be the main challenges for the countries of the union in 2022. "But, as practice shows, we have learned to respond to the new economic reality in a prompt and coordinated manner," said the head of government.
Smailov also called on his colleagues to continue systematic and consistent work to achieve the main objectives and principles enshrined in the EEU law, aimed at ensuring economic development, modernization, strengthening the competitiveness of national economies and improving the well-being of citizens of the association states.
Export to the markets of third countries
Smailov believes that the EEU states need to increase exports to the third countries' markets. "The priority task is to increase exports and to take measures to stimulate it. Equal access to transport infrastructure, including seaports, is an effective measure to promote exports of the EEU member states to third countries' markets. "The need for its provision is at the heart of the Eurasian Economic Union," said Smailov.
According to him, the work on the practical implementation of this principle, started five years ago, remains incomplete today. "It is necessary to ensure the speedy implementation of the provisions of the treaty and the conclusion of the relevant agreements guaranteeing non-discriminatory access to port services. It is also important for the development of our countries' exports to solve the issue of freedom of transit of goods. The proposed transit conditions often become an insurmountable obstacle to exports, which has an extremely negative impact on the sectors of the economy of states that do not have direct access to the sea," explained the prime minister of Kazakhstan.
GSV "Russia - Islamic World"
Photo: official website of the Prime Minister of RK
Based on materials TASS