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EAEU–ASEAN
8 June 2019
10:00—11:15
KEY CONCLUSIONS
EAEU–ASEAN cooperation is on the rise

Last year the EAEU and ASEAN signed a memorandum of cooperation. We are preparing a roadmap to continue developing it. <…> We have agreed on the development tracks. <…> Cooperation will go on in both multilateral and bilateral formats — Tatyana Valovaya, Member of the Board – Minister in Charge of Integration and Macroeconomics, Eurasian Economic Commission .

There is every prerequisite to expand cooperation in developing high tech, completing large-scale projects in agriculture and food processing, in digital economy, information and communication industries — Ivan Polyakov, Chairman, Russia - ASEAN Business Council .

Trade has been growing the past 20 years. In the past 5 years, ASEAN invested nearly USD 9.3 billion in new projects. EAEU invested about 5.4 billion in ASEAN — Armida Salsiah Alisjahbana, Executive Secretary, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

Rapidly growing population and economies of the ASEAN countries provide ample opportunities for EAEU companies

Our middle class is growing. By 2020, there will be nearly 135 million people with midlevel income. McKinsey and PricewaterhouseCoopers predict Indonesia will become world’s 4th largest economy by 2050 — Mohamad Wahid Supriyadi, Ambassador Extraordinary and Plenipotentiary of the Republic of Indonesia in the Russian Federation.

We aim to expand relationships with both regional and global partners. <…> ASEAN countries account for 25% of global GDP growth — Ko Ko Shein, Ambassador Extraordinary and Plenipotentiary of the Republic of the Union of Myanmar in the Russian Federation .

ASEAN has oil producers. We are among the largest exporters of oil. Import of commodities has grown by 60%. We are going to require two thirds more energy very soon. <…> We are starting to explore nuclear energy, that is well developed in the EAEU countries — Carlos Sorreta, Ambassador Extraordinary and Plenipotentiary of the Republic of the Philippines in the Russian Federation.

Our products are well-known in the ASEAN region. Most of what we export are small tractors for farmers. <…> We created a joint venture in Cambodia, it works well — Fedor Domotenko, General Director, Minsk Tractor Works OJSC.

The importance of Big Eurasia keeps growing

With the trade war the US launched against China, with the sanctions <…> all eyes are on the Eurasia, It appears that it is here, where many participants of the global economic processes saw an opportunity to develop a new world order or at least new global management system, capable of leading to sustainable economic growth — Kirill Barskiy, Ambassador-at-Large, Ministry of Foreign Affairs of the Russian Federation.

ISSUES
Limited variety and small trade volume

There are certain difficulties. We expected the trade volume [between Vietnam and the EAEU, – Ed.] to reach USD 10 billion by 2020. We only have one year left to reach it — Hoang Quoc Vuong, Deputy Minister of Industry and Trade of Vietnam.

Trade and investment are limited. If we talk about trade between Cambodia and the EAEU it is mainly import of vehicles, fertilizers, and mechanisms from the EAEU, whereas we export agriculture produce — Kamrang Tekreth, Secretary of State, Ministry of Commerce of the Kingdom of Cambodia.

Customs barriers

Trade costs are a problem. They need to be brought down. There is an offer to ease the trade procedures for 1 or 2 years. Particularly, we have an electronic trade agreement for border trade from 2017 — Armida Salsiah Alisjahbana, Executive Secretary, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

You cannot trade electronically without digital platforms. We need state support for that. <…> We need a joint platform for trade that can help tie together not only different customers, but different regions of the world as well — Desmond Tay, Co-Founder, Chief Executive Officer, vCargo Cloud Pte.

Underdeveloped logistics

Both distances and logistics are a problem for us — Mohamad Wahid Supriyadi, Ambassador Extraordinary and Plenipotentiary of the Republic of Indonesia in the Russian Federation.

SOLUTIONS
Simplification of trade

We are currently in negotiations to create a free trade zone between the EAEU and ASEAN. We hope that the negotiations will go faster, and we will sign that agreement faster that in our country’s case <…>. This will greatly speed up the economic development of our blocks — Hoang Quoc Vuong, Deputy Minister of Industry and Trade of Vietnam.

One of the examples I wanted to share was [the agreement] we reached as part of the Russia–Singapore trade cooperation union. This platform should simplify e-commerce requirements — Desmond Tay, Co-Founder, Chief Executive Officer, vCargo Cloud Pte.

Involving Russian with ASEAN infrastructural projects

Apart from industry and agriculture, there are other mutually interesting areas. For instance, infrastructural investments. Asia needs infrastructural development, Cambodia does in particular. We have a number of projects, for instance airport expansion needed to attract more tourists. We also need to expand out road network and railroads are needed to speed up the export and cut down the costs — Kamrang Tekreth, Secretary of State, Ministry of Commerce of the Kingdom of Cambodia.

The government invests major funds in the infrastructural development. We have grown the amount three times: from 154 to 420 billion — Mohamad Wahid Supriyadi, Ambassador Extraordinary and Plenipotentiary of the Republic of Indonesia in the Russian Federation.

Developing interaction in the high-tech sector

Technology is the best opportunity. ASEAN Internet economy is at USD 625 billion. It is only 5% of our economy. In Malaysia, Internet economy accounts for 18%. <…> Russia has technologies, especially in fintech, but in cybersecurity or client and banking systems communication, that exist in fintech. <…> We need such solutions — Mohd Munir Abdul Majid, President, ASEAN Business Club.

We are entering Asian markets. <…> We have agreements signed with Malaysian design centres. <…> Asian countries eagerly buy our product. <…> We are offering solutions for biomedicine, RFID, Internet of things, blockchain, etc — Andrey Anikin, General Director, Angstrem-T.

Developing contacts among small and medium-sized businesses

Great potential lies in the development of small and medium-sized business relations. We are going to create additional infrastructure to promote these projects and companies — Ivan Polyakov, Chairman, Russia - ASEAN Business Council .

The material was prepared by the Russian news agency TASS