Opinion: Withdrawal from EAEU means economic slowdown for Belarus

MINSK, 21 August (BelTA) – Belarus' withdrawal from the EAEU will lead to the deceleration in economic growth in the country, Doctor of Economics, Rector of Vitebsk State University Valentina Bogatyreva told BelTA.

"The Eurasian Economic Union makes it easier for its member states to address a great number of important economic and social tasks. The main goal of the EAEU is a comprehensive modernization, cooperation, greater competitiveness of national economies, creation of conditions for sustainable growth with a view to improving the living standards of the population of the member states. This goal can be achieved by ensuring the freedom of movement of goods, services, capital and workforce, as well as coordinated economic policies of the participating countries,” Valentina Bogatyreva said.

According to her, Belarus' withdrawal from the EAEU will entail a number of unwanted consequences; the worst of them is the economic slowdown. "The exit from the EAEU will put an end to the free movement of goods, people, services and capital. With customs barriers in place, countries will have to pay import and export duties, comply with non-tariff regulation measures, special protective, anti-dumping and compensatory measures. The introduction of customs duties on Belarusian goods will reduce their competitiveness in the main sales markets (primarily in Russia), since it will make them more expensive for consumers,” the expert noted.

In this case, it will be more difficult to find sales markets, and consequently to provide the country with foreign currency earnings. The lack of a sufficient amount of foreign currency will make it harder to pay for imported goods, including the necessary raw materials for keeping companies working, component parts,” Valentina Bogatyreva stated. “Reduced capacity utilization will mean that fewer products will be produced and sold, which will cannot but affect salaries. The introduction of import duties on goods from the EAEU countries will make these goods more expensive on the domestic market of Belarus. There will also be a risk of violating the certification requirements. The need to undergo certification and obtain the appropriate quality documents will drive production costs of Belarusian enterprises up. Small and medium-sized businesses that import small consignments of goods will suffer the most,” she stressed.

She emphasized that the above-mentioned economic consequences of leaving the EAEU will lead to social problems, first of all, a possible decrease in salaries due to a decrease in revenues from the sale of products, works, services. "In addition, it will be necessary to obtain permits for entry and exit, for work. Now people in the EAEU are guaranteed equal rights to employment, wages, social security (except for pension), as well as equal rights in terms of working hours and rest hours, occupational safety and other matters, including membership in trade unions,” said the expert.

Any statements calling for the country's withdrawal from the EAEU are destructive and make no economic sense,” Valentina Bogatyreva concluded.