On December 26, in St. Petersburg, Russia, the President of Kazakhstan, Kassym-Jomart Tokayev, participated in the regular meeting of the Supreme Eurasian Economic Council (SEEC), Akorda reports. He expressed his gratitude to his Russian colleagues and President Vladimir Putin for their hospitality and the high level of organization of the event.
Global instability and economic growth
Tokayev acknowledged the challenges faced globally this year, citing inflationary pressure, transformation of international logistics chains, regional conflicts, and sanctions confrontation as factors that have slowed the pace of the world economy. Despite these challenges, he announced that Kazakhstan plans to end the year with an economic growth of 4.9%. He also noted that all the countries of the “Eurasian Five” have come to positive dynamics.
Looking ahead to 2024, Tokayev emphasized the need for joint preparation to maintain the trajectory of sustainable development of their economies. He cited experts’ forecasts predicting a moderate global economic growth of 1.5 to 3%. As an integral part of the world economy with a market of $2.6 trillion, the EAEU may also experience this slowdown.
Technological cooperation and economic integration
One of Tokayev’s priorities is the development of technological cooperation between the EAEU states in the real sector of the economy. He believes that the widespread introduction of advanced technologies and innovations will strengthen the positioning of the economic association on the world stage. He welcomed the reflection of this issue in the Eurasian Economic Way declaration adopted at the meeting, which is associated with China’s global Belt, One Road initiative.
Freedom of movement of goods
Tokayev stressed the importance of fully implementing the fundamental basis of the EEAC - the freedom of movement of goods. He noted that despite the opening of customs borders, each country continues to protect domestic producers from competition with other EAEU participants. He called for the elimination of existing barriers and restrictions in the common market, as well as the acceleration of the introduction of unified technical regulations.
EAEU Integrated Information System and E-commerce
The full functioning of the EAEU Integrated Information System would significantly reduce business costs when moving goods between the participating countries. Tokayev sees a great potential for productive interaction in the field of electronic commerce. Last year, the total volume of this market in the EAEU reached $80bn. Shortly, this figure may double. However, this is far from the limit. He urged for more active work to improve customs procedures and create an effective and equitable ecosystem of online commerce.
Current state of EAEU’s agricultural exports
The Eurasian Economic Union (EAEU), a strategic link connecting the entire Eurasian space, currently contributes a little more than 2% to the global market of agricultural exports. This figure is surprisingly low because over 800 mn people worldwide are experiencing hunger and food shortages. The EAEU countries have the potential to feed about 600 mn people, yet the current geopolitical situation and sanctions have hampered the supply of food.
Strengthening EAEU’s transport and logistics framework
The EAEU countries are also focusing on strengthening their transport and logistics framework. This includes the development of the North-South corridor with access to the states of the Middle East, Iran, Pakistan, and India. Kazakhstan’s initiative to launch the “Chelyabinsk - Bolashak - Iran” route is finding its practical implementation.
Future plans and projects
Kazakhstan is completing the construction of its terminals in the Chinese city of Xi’an and the Georgian port of Poti. Plans are in place to launch 5 cross-border transport and logistics hubs on the borders with Russia, China, Uzbekistan, Kyrgyzstan, and the Caspian Sea. The near future will see the construction of 1,300 kilometres of new railway tracks, dry ports of Bakhty and Kalzhat, as well as a seaport in Iranian Bandar Abbas. The EAEU countries are invited to jointly implement mutually beneficial projects, including a partner network of major strategic ports, logistics centres, and postal hubs.
EAEU’s potential in challenging times
The importance of consistently strengthening the potential of the Eurasian Economic Union (EAEU) was emphasized, particularly in these challenging times. The EAEU, an economic union of five post-Soviet states, boasts an integrated single market of 183 mn people and a gross domestic product of over $2.4 trillion.
Developing trade and economic relations
The focus is on developing trade and economic relations with third countries and integration associations. A significant milestone in this direction is the signing of a full-fledged Free Trade Agreement with Iran, which occupies an important place in the system of our trade and economic relations.
Targeted work in this direction should be continued with India, the United Arab Emirates, Egypt, Indonesia, Mongolia, and other interested countries, as stated by Kassym-Zhomart Tokayev. This strategic expansion is expected to further boost the EAEU’s trade turnover, which exceeded $73bn in 2021, up nearly 25% from the previous year.
Leadership transition
At the end of his speech, the leader of Kazakhstan congratulated Vladimir Putin on the successful completion of the chairmanship of the Russian Federation and also wished Nikol Pashinyan a productive chairmanship in the EAEU bodies in 2024. In addition, the Head of State expressed gratitude to Mikhail Myasnikovich, who is completing his mission as Chairman of the Eurasian Economic Commission.
Summit highlights
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