The countries of the Eurasian Union have eliminated the overwhelming number of barriers in the domestic market, the pace of this work has accelerated, the EEC notes. One of the latest examples was the simplification of access to public procurement in Kazakhstan, which is one of the initiators of the Eurasian integration. In January-May 2023, the republic increased trade with EAEU partners by 10.5% compared to the same period last year, to $114 billion. Industrial cooperation is also developing successfully, primarily with Russia. Nevertheless, the difficulties are created by the efforts of Western countries to destroy the interconnections of Kazakhstan and other post-Soviet countries with the largest economy in the region – Russia. What does the EAEU mean for Kazakhstan today, and what is the key to successful cooperation between the Union countries, in an interview with “Eurasia.Expert” was evaluated by the expert of the Institute of Innovative Economics, Professor of KazNU, Doctor of Economics Magbat Spanov.
– In July, the Board of the Eurasian Economic Commission recognized the removed barrier associated with restrictions on the admission of certain types of products from the EAEU countries to public procurement in Kazakhstan. The Republic has eliminated the norms of legislation that do not correspond to the law of the Union. How will this affect Kazakhstan’s cooperation with the EAEU partners?
– After the creation of the EAEU, certain contradictions remain in the legislation of our countries. One side or another, of course, protects its interests. Initially, there were three countries in the EAEU, respectively, there was one legislation. Then two more countries joined the union, and further improvements are taking place in accordance with this.
Kazakhstan protected primarily the interests of domestic producers. In the law “On Public Procurement” it was noted that local producers have a preferential right. There is even an import substitution program, according to which, within the framework of public procurement of certain goods or services, there should be a certain percentage from a local manufacturer. From this point of view, it was justified, but the EAEU is moving towards a common market. Accordingly, we must comply with certain rules.
In the process of work, some violations will be detected not only by Kazakhstan, but also by other countries that are members of the EAEU. For the manufacturer, the better and cheaper the product or service provided, the more profitable it is. All this will be a positive moment, and will force, among other things, Kazakhstani manufacturers not to stand still and produce better and more competitive products.
– What does integration within the EAEU mean for Kazakhstan today?
– For Kazakhstan, integration within the EAEU is primarily an economic relationship. This is a process associated with the formation and creation of new industries, the exchange of goods and services, a single labor market. That is, integration is primarily cooperation.
If we take it more deeply, then, of course, there are certain contradictions in Kazakhstan. They are connected with the fact that some part of the population opposes cooperation within the EAEU, primarily with Russia. On the other hand, the same claims are expressed in the framework of integration with China. Therefore, in principle, there is nothing terrible here. Only the economy will determine whether the interconnections will improve. And this will serve as a reason for further deepening of cooperation.
– How has membership in the EAEU affected and continues to affect the economy of Kazakhstan?
– There are both positive and negative aspects here. Many enterprises in Kazakhstan could not withstand competition with Russian or Belarusian enterprises. There are a lot of enterprises selling Russian or Belarusian products in every major city of Kazakhstan. On the other hand, the problem is that Kazakhstan itself could not compete with the same success as enterprises selling Belarusian or Russian goods. That is, all this is interconnected.
Another question is that at the moment the sanctions have a very strong impact on cooperation, on the economy of Kazakhstan. On the one hand, sanctions are a window of opportunity for Kazakhstan. On the other hand, we may also fall under sanctions.
– The EAEU is not only successfully developing, but also deepening cooperation with other countries and regional unions in Southeast Asia and the Middle East, Africa and Latin America. How do you see the future of the EAEU? Will the union expand?
– As for the possible expansion of the EAEU, it seems to me that this is not expected in the near future. The only issue related to deepening cooperation relates to the free trade zone. Vietnam and Iran have already entered this zone. The involvement of other countries is expected, but so far the geopolitical situation has a negative impact on these processes.
Although, we can say that the EAEU, in principle, withstands the pressure that the West is currently exerting on it. But it takes some time to figure out in which direction to move on.
– By 2025, a common financial market and common markets in the fields of electricity, gas, oil and petroleum products will be formed in the EAEU. What are the advantages of creating common markets for the members of the union?
– Our countries are actively working to create a common market in 2025. Certain obstacles are being eliminated, legislation is being harmonized, but in some moments we are getting ahead of ourselves. It is necessary to take into account the impact of sanctions. But if we consider it from the point of view of regulatory legal acts, there is progress in this regard.
All the EAEU countries are former republics of the USSR. In Soviet times, there was a common national economic complex, respectively, certain connections and standards for certain types of products were preserved. The general culture of production was at the same level. All this allows you to cooperate and speak the same language, even in technical matters. We know that we can always find a common language.
– What do you see as the key to the successful development of cooperation within the EAEU?
– Back in the early noughties, I said that the world economy would develop in the direction of regional markets. The EAEU is a regional market, and what it will become depends on the politicians and businessmen of our countries. If we find a common language, we will develop. But if every time we find reasons to protect our market and follow in line with our national interests, then, of course, nothing will work.
A source: https://e-cis.info/news/566/110859/