Page - 7 - in options, Volume winter 2018/2019

News in brief An IIASA-led project looking at economic ties between the EU and the Eurasian Economic Union (EAEU) has published three reports discussing prospects of enhancing cooperation despite ongoing political cool- down in three important areas: technical product standards, foreign direct investment, and transport corridors. The “Challenges and Opportunities of Economic Integration within a Wider European and Eurasian Space” project includes the Eurasian Development Bank, the Vienna Institute for International Economic Studies, and the Centre for European Policy Studies. There is much interest in creating stronger economic ties between the EU and the EAEU, but progress is hampered by serious political tensions between the EU and Russia. “At present, the European Commission does not engage in any official contacts with the Eurasian Economic Commission (EEC) at the political level. This creates significant uncertainty for business. IIASA serves as a unique, depoliticized platform that allows experts, policymakers, and representatives of the business community to exchange views,” says Elena Rovenskaya, IIASA Advanced Systems Analysis Program director. The report on Technical Product Standards and Regulations in the EU and EAEU – Comparisons and Scope for Convergence, revealed that the EAEU has adopted European and international standards for goods more fully than previously realized. This lays the groundwork for legal and technical cooperation, such as a mutual recognition agreement like that which exists between the EU and the United States, where the exporting country will certify to standards in the importing country. The second document on Foreign Direct Investment between the EU and EAEU highlighted that investment flows between the EU and Russia are in steep decline due to mutual sanctions, with little chance of change in the near future. As a result, only short-term measures like protecting existing investments and simplifying administrative procedures can be suggested. The third report, titled Trans-Eurasian Land Transport Corridors: Assessment of Prospects and Barriers, emphasized that economic cooperation between Europe and Asia will require increased land transport capacity and associated investment. Further development will require coordinated action, including a higher level of regulatory harmonization and the development of railway infrastructure and various border-crossing points. Chinese subsidies have improved the economics of land transport, and the stability of such subsidies will be a key issue. The reports were presented at a high- level conference in Moscow in June 2018 – “Prospects for a deeper EU–EAEU economic cooperation and perspectives for business” – organized by IIASA, the EEC, the Russian Union for Entrepreneurs and Industrialists, and the Association for European Businesses in Russia. The project was also presented at a number of high-level events, including those of the Organization for Security and Co-operation in Europe. The researchers are planning the next phase of the project, aiming to provide scientific foresight into how EU-EAEU economic cooperation may develop in the future. Top: © IIASA | www.janalfredbarclay.com Circle: At a high-level conference in Moscow in June 2018 on “Prospects for a deeper EU – EAEU economic cooperation and perspectives for business” (L-R): Alexander Murytchev, Executive Vice-President, Russian Union for Entrepreneurs and Industrialists (RSPP) and Alexander Shokhin, President of the RSPP © IIASA Written by: Helen Tunnicliffe The economic benefits of European-Eurasian economic ties Further info: Beifert A, Shcherbanin Y, & Vinokurov E (2018). Trans-Eurasian Land Transport Corridors: Assessment of Prospects and Barriers. IIASA Report. Laxenburg, Austria [pure.iiasa.ac.at/15271] Emerson M & Kofner J (2018). Technical Product Standards and Regulations in the EU and EAEU – Comparisons and Scope for Convergence. IIASA Report. Laxenburg, Austria [pure.iiasa.ac.at/15272] Balás P, Havlik P, Cielava E, Stepanova A, Komendantova N, Zaytsev Y, & Knobel A (2018). Foreign Direct Investment between the EU and EAEU. IIASA Report. Laxenburg, Austria [pure.iiasa.ac.at/15273] Elena Rovenskaya: rovenska@iiasa.ac.at 7www.iiasa.ac.at OptionsWinter 2018/19