In honour of the tenth anniversary of the Eurasian Economic Commission on 2 February 2022, the Sputnik news agency took comments from the economist of the MIWI Institute for Market Integration and Economic Policy Yuri Kofner, who noted that Eurasian economic integration has made good progress over the past ten years.
“The commission was able to create a single goods market with a functioning customs union and uniform standards, a single labour market with a common pensions and social system. The EAEU member states made good progress in macroeconomic convergence, e.g., the inflation rate. The Eurasian Economic Commission implemented many important free trade agreements with third parties. In terms of the degree of institutional integration, the EAEU ranks second after the European Union. And most importantly, in difficult economic and political times, the EAEU countries were held together not by force, but by mutual economic benefits.
According to one MIWI study, if Belarus, Kazakhstan and Russia had not joined the Eurasian Customs Union in 2010, by 2019 their GDP per capita would be 18, 55 and 30 percent lower than their actual GDP. On average, GDP per capita in Belarus would be lower by USD 700 per year, in Kazakhstan by USD 2,900 and in Russia by USD 2,000.
Belarus and Kazakhstan received a significant welfare increase from the creation of the EAEU in 2015. In Russia, a steady increase in welfare was observed throughout the study period.
According to another MIWI study, if the EAEU collapses, this will lead to a decrease in GDP throughout the region. This will mean an economic knockout for each of the member states separately, except for Russia: Armenia’s GDP will fall by 15 percent, Belarus – by 21.1 percent, Kazakhstan – 4.6 percent, Kyrgyzstan – 35 percent.
At the same time, the EAEU still faces challenges that need to be addressed: The EEC still does not have the authority to impose sanctions against member states for non-compliance with the Treaty on the EAEU. There are difficulties in creating common markets in such important areas as services, finance and energy. And the EAEU needs to speed up the signing of free trade agreements with third parties.”
Source: Sputnik News Agency