Assessing the Impact of Non-Tariff Barriers in the EEU: Results of Enterprise Surveys

After the establishment of the Customs Union (CU) and the Single Economic Space (SES), Belarus, Kazakhstan and Russia have repeatedly stated the need to eliminate exemptions, limitations, and barriers to mutual trade in goods and services. This report represents the first stage of a study on the economic impact of reduction within the SES and the emerging Eurasian Economic Union (EEU) of non-tariff barriers (NTBs) to trade among Member States. It gives an overview of works on the definition and classification of NTBs, and the quantitative assessment and calculation of the economic effects of NTBs reduction. The report also presents the results of surveys and interviews with enterprises and companies of Belarus, Kazakhstan, and Russia that export goods and services to the markets of the CU and EEU. These surveys and interviews revealed respondents’ views on the NTBs they face when exporting to each of the partner states. They also obtained quantitative estimates of NTBs as a percentage of the value of exported goods, which made it possible to estimate the costs of each of the NTBs to the enterprises

Estimating the Economic Effects of Reducing Non-Tariff Barriers in the EEU

The report provides the first comprehensive assessment of the effects of non-tariff barriers on mutual trade in the EEU and gives recommendations as to how to remove them. It is based on a poll of 530 Russian, Kazakh and Belarusian exporters. In the research non-tariff barriers are divided into two groups. The first group includes non-tariff barriers such as sanitary and phytosanitary measures, technical barriers to trade, quotas, prohibitions, and quantitative controls. The second group comprises price and competition controls (the institute of “special importers,” sale restrictions, restrictions on public procurement, various subsidies). The second group of barriers is often referred to as “sand in the wheels,” because it hinders the movement of goods and in principle can be fully removed. The authors have come to a conclusion that this very group of barriers possesses a more negative influence on trade. Therefore, the main policy efforts should be directed at removing “sand in the wheels” of mutual trade

Estimating the Economic Effects of Reducing Non-Tariff Barriers in the EEU

The report provides the first comprehensive assessment of the effects of non-tariff barriers on mutual trade in the EEU and gives recommendations as to how to remove them. It is based on a poll of 530 Russian, Kazakh and Belarusian exporters. In the research non-tariff barriers are divided into two groups. The first group includes non-tariff barriers such as sanitary and phytosanitary measures, technical barriers to trade, quotas, prohibitions, and quantitative controls. The second group comprises price and competition controls (the institute of “special importers,” sale restrictions, restrictions on public procurement, various subsidies). The second group of barriers is often referred to as “sand in the wheels,” because it hinders the movement of goods and in principle can be fully removed. The authors have come to a conclusion that this very group of barriers possesses a more negative influence on trade. Therefore, the main policy efforts should be directed at removing “sand in the wheels” of mutual trade