Kazakhstanskaya Pravda - Cooperation Priorities

Тhe Key Areas for Production Cooperation in the EEU, a document approved by the Eurasian Intergovernmental Council, must become a strategic paper to enhance cooperation between the EEU member states in the medium term. Sergey Sidorsky, the EEC Minister of Industry and Agroindustrial Complex, stated this.

"This document will ensure that the union pursues a concordant industrial policy," the EEC minister said. "Such document has been developed for the first time in integration unions between the post-Soviet states." The most important areas for industrial cooperation include, for example, the development of collaboration to manufacture competitive industrial products. This will ensure import substitution and will make it possible to fill the common market of the union with Eurasian products and enhance exports to third countries. The key areas include the innovative development of the EEU industries, the attraction of investment, the improvement of accessibility of financial resources for industrial enterprises, and the lifting of barriers to the movement of industrial goods in the common EEU market. The EEC minister pointed out that the document determined the tools and mechanisms, which would be used by the parties to fulfil the main areas, and the lists of economic activities, which were priorities for cooperation, and sensitive goods. It is expected that cooperation will be enhanced by means of developing and fulfilling joint import substitution projects in the top priority economic sectors, enhancing the localisation of assembly plants, and involving small and medium-sized businesses in cooperation chains. "Deeper cooperation will enhance linkages between industrial sectors of the EEU member states, involve more small and medium-sized businesses in integration, create new production chains, and make it possible to fulfil a common, mutually beneficial sales strategy in third country markets, instead of unreasonable competition," the minister emphasised. To promote the export of joint products, it is envisioned to develop a mechanism to jointly approach third party markets.

To this end, it is planned to form joint dealer and service networks, to set up certification centres for mechanical and other engineering products, and special joint sales companies and consortia, and to ensure the use of international and regional technical standards as a priority, and the introduction of quality management systems at production enterprises. To stimulate the export of joint products, the document provides for the introduction of advanced financial instruments to support exports (lease, and pre-export and export finance for joint products). In addition, according to Sergey Sidorsky, the document envisions measures to create new innovative production sectors and upgrade (re-equip) enterprises operating in the EEU. It is expected that this will be done through the creation of Eurasian technological platforms, the development and implementation of interstate innovation programmes, the establishment of a technology transfer network, joint research, and the foundation of a Eurasian engineering centre. In devising the key areas special attention was paid to the issues of investment and the enhanced accessibility of financial resources for industries. These financial factors will be implemented by means of involving Eurasian Development Bank in the financing of joint programmes and projects having a cooperation effect, and increasing the financing for joint research and innovative projects and programmes in the industrial sector. Another mechanism will be the development of venture investments in innovations. "On the whole, the fulfilment of the key areas will have a synergy effect, which will be ensured by the joint advancement of industrial production in the EEU member states, and will improve the qualitative and quantitative indicators of the member countries' industries," Sergey Sidorsky concluded.