Bad Economies Survive under Eurasian Economic Union

(140529) — ASTANA, May 29, 2014 (Xinhua) — Belarusian President Alexander Lukashenko, Kazakh President Nursultan Nazarbayev and Russian President Vladimir Putin (L to R) pose for photos in Astana, Kazakhstan, May 29, 2014. The heads of state from Belarus, Kazakhstan and Russia signed a treaty here Thursday to launch a European Union-style bloc to facilitate the free flow of people, capital and goods within the three countries. (Xinhua/Lu Jingli) (srb)

Akmaral SABATAR – Journalist at NTS Kyrgyzstan

In late May, Astana hosted a meeting of the Supreme Eurasian Economic Council (EAEC). In the course of the meeting, the presidents of Kazakhstan, Belarus, Armenia, and Kyrgyzstan summed up the intermediate result of the Eurasian Economic Union. All sides complained about unresolved issues. The participants were forced to admit that their union is not able to solve any of the problems facing it – the turnover drops, free trade limiting multiple barriers.

For instance, Kazakhstan has introduced an embargo on Kyrgyz potato in May 2016. Many Kyrgyz farmers have suffered because of this radical decision. Kyrgyz president Almazbek Atambayev has raised this issue at the summit in Astana and the president of Kazakhstan, Nursultan Nazarbayev instructed the government to resolve the issue.

Four days later embargo was lifted. But it has not yet resolved the issue of exports of meat and dairy products. Between the two countries, phytosanitary and sanitary control systems are applied. Additionally, the two countries have still close borders for some items. This question had to be decided in the 6th meeting of the Council of Governments of the two countries. But it was announced that the two sides could not agree. That’s how they were able to question the point of contact is not known. It seems that after the accession to the Eurasian Economic Union, such problems should be solved but in reality, this union works only on paper.

President of Belarus Alexander Lukashenko expressed his remarks during the meeting of the Supreme Eurasian Economic Council. “Unfortunately, not all is unfolding as we had planned. Problems still remain. The sharpest of them we have discussed today. First of all, it is necessary to translate the theoretical into practical achievements. Firstly, it is necessary to get rid of domestic seizures and mutual trade restrictions. How would our association is not evolved – first customs union, then the single economic space, finally in EAEC – the number of these exceptions and limitations have not changed. It remained at the level of 600. Equal conditions for States Parties to the EAEC and the barrier-free environment has not yet been established.”

For the economies of these countries, the second consecutive year wasn’t efficient. The economic boom that is predicted by some experts did not happen. At least, it has not happened yet. For example, if the trade turnover decreased by 26% last year, in the first half of this year faces another 30%. We also must take into account that, these countries have different economic indicators in the union. For example, Kyrgyzstan’s GDP – $6 billion, Kazakhstan’s GDP – $203 billion, the GDP of Belarus – $71 billion, while Russia’s GDP – $2 trillion. There is a huge difference. Many experts believe that these figures do not allow working on an equal basis for that countries.

Meanwhile, experts say that the union has not turned out very successful as he is plotting, and hopes of ordinary citizens to freedom of movement are not justified.

But accession to the Eurasian Economic Union brought benefits to our migrant workers. For example, the Kyrgyz migrants are exempt from the examination on the Russian language and history. In Russian-Kyrgyz migrants are more than 1 million. Kyrgyz migrants are exempt from carrying documentation procedure of recognition of education issued in their country, and from the obligation to migration authorities within 30 days from the date of entry. Migrant workers are working in Russia without a license. While the plus the feel of it!