THE DOORS TO THE EAEU ARE OPEN FOR THE REPUBLIC OF TAJIKISTAN

Evgeniy Korenkov, Trade Representative of the Russian Federation in the Repablic of Tajikistan


The Russian Federation has been the main trading partner of the Republic of Tajikistan since 2007. Despite the crisis, Russia has managed to maintain the positive dynamics of bilateral trade. In Tajikistan’s foreign trade turnover, its share in different years ranged from 20 to 25%, and by the end of 2023 it amounted to 20.6%

According to the Agency for Statistics under the President of the Republic of Tajikistan, the volume of mutual trade with Russia in 2023 increased by 2.7% compared to the same period in 2022, while Russian exports remained at the same level, and imports from Tajikistan increased by 52.7%. In the first quarter of 2024, positive dynamics also remained: the volume of mutual trade increased by 22.5% compared to the same period in 2023.

In 2023, food products were supplied from Russia to Tajikistan in significant volumes; growth is noted in almost all major commodity groups, including soft drinks, white sugar, fats and oils, flour and confectionery products. The supply of wood and pulp and paper products also showed an increase in relation to 2022. The supply of softwood lumber increased mainly, due to the continued growth rate of the construction industry in the republic.

At the same time, the commodity groups of Tajik exports to Russia in 2023, showed the greatest growth –2.8 times compared to the same period in 2022 – were hosiery made of cotton yarn, clothing and shoes. The total volume of exports of fruits and vegetables to Russia from Tajikistan as of January 1, 2024 amounted to 12.6% of total exports.

In the structure of exports of Tajik agricultural products, 42% are dried apricots and 13.7% are fresh, 10.7% are grapes, 5.3% are mixtures that do not contain prunes and fi gs. According to the State Committee for Investment and State Property Management of the Republic of Tajikistan, in 2023, the country’s economy received Russian investments in the amount of 30.1 million US dollars.

These investments were mainly focused on industries such as energy, mining, construction materials, agriculture,
communications, light industry and financial services. Cooperation in the fi eld of digital economy and ecommerce is seen as a promising area for investment activity in the Republic of Tajikistan. In the food industry, in accordance with an accelerated industrialization program designed to attract investment and build new production facilities, it is planned to restore existing creamery facilities and their technological renovation, taking into account the introduction of advanced technologies for wastefree processing and the production of vegetable oils.

If we talk about the light industry, cooperation in the production of textile products can be economically beneficial for both parties. This will optimize the costs for manufacturers and contribute to increasing the competitiveness of products on domestic and international markets. The Government of the Republic of Tajikistan has a goal to ensure complete processing of cotton fiber within the country by 2030. To achieve this, it is important to develop sub-sectors such as cotton yarn production, processing of animal raw materials into finished products (shoes and leather goods), and lothing production.

These sub-sectors have potential for joint activities and could lead to economic growth and job creation in Tajikistan. By working together, businesses can share knowledge, resources, and expertise to create high-quality products that meet international standards. This would not only benefit the local economy but also contribute to Tajikistan’s international trade. Me understand that Russia with its advanced industry and technology has the potential to contribute to the development of various industries in Tajikistan.

The Russian Federation cooperates with Tajikistan through the Commonwealth of Independent States and the Shanghai Cooperation Organization, and the country is still considering joining the Eurasian Economic Union.

The Eurasian Economic Union (EAEU) has become a cornerstone of successful development and a guarantee for ensuring the common interests of its member states – the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, Kyrgyz Republic, and the Russian Federation. Despite global challenges and factors such as changing world trade conditions and large-scale digitalization of economies, the EAEU will continue to evolve as an established and efficient economic and legal entity.

Since the beginning of its operation, integration within the EAEU has deepened in various areas. This has led to a trend towards convergence and improvement in certain indicators of socio-economic development among the member states.

The share of settlements in the national currencies of the EAEU countries reached a record high of 90%.
Additionally, all EAEU member states experienced GDP growth last year, with the EAEU’s GDP growing by 3.8% in 2023.

The current stage of integration has provided an opportunity to increase the freedom of movement of goods, services, capital and labor, as well as to implement coordinated economic policies. The Union implements a unified foreign trade policy with coordinated methods of customs tariff and non-tariff regulation are in use, as well as measures to protect the domestic market (special, antidumping, and countervailing measures).

It should be noted that the EAEU is now seen as an open and unified market, as well as a common investment and business platform, free from political conditions and discriminatory restrictions. Participating in the EEC and the programs implemented within the Union are becoming increasingly profitable and beneficial. One of the most significant challenges for Tajikistan’s economic growth is finding customers for its goods and expanding sales markets.

Access to customers within the EAEU (Eurasian Economic Union) is crucial for the business community in the member states, as it facilitates the development of manufacturing facilities. This creates a multiplier effect, where if entrepreneurs have confidence in effective demand, they are more likely to increase production volumes leading to the creation of more jobs and the potential for cost reduction.

At the same time, the population of the EAEU member states benefits from the Union membership by zeroing customs duties and, as a result, reduction of prices for a number of goods and services due to the unified economic system.

According to the Agency for Statistics under the President of the Republic of Tajikistan, it was the countries of the Union that accounted for the majority of the foreign trade turnover of the Republic of Tajikistan in 2023 – this is more than 2.97 billion US dollars or about 36% of the total foreign trade of the Republic.

And in the first quarter of 2024, the figure amounted to 830 million US dollars, or 40% of the overall volume of foreign trade of the republic. It is also worth mentioning that the EAEU offers ample opportunities for the transit of goods from third countries. The Republic of Tajikistan, in particular, could become a “gateway” for goods from countries like India, Afghanistan, Iran, and Saudi Arabia. By leveraging the partnership in the Middle East and the South Asia connections, Tajikistan has the potential to facilitate the supply of a diverse range of products to the EAEU member states.

The Union has justified its purpose and it opens up broad prospects for its future development. Increase of joint efforts to establish common markets for goods and services, further development of trade and investment relations, strengthening industrial and technological cooperation, developing a convergence of monetary, financial, and monetary policies, and creating more efficient transport and logistics connections are among the priorities of the organization. It maintain to pay priority attention to eliminate the remaining restrictions and barriers to the free movement of goods, capital, and labor.

As it has been virtually proved all these practices ultimately contribute to the development of the association as a w hole and the economies of EAEU member states in particular. It is important that the Union takes into account national interests that could and should be aligned with the economic and strategic goals of the association.

We would like to reiterate that the doors of the Eurasian Economic Union are open to Tajikistan. The republic’s path may begin with observer status within the Union. In 2019, Tajikistan eliminated customs duties on imports from Russia, Belarus, Kazakhstan, Kyrgyzstan, and other CIS countries, that are more than half of its imports (excluding goods beyond the free trade agreement). It was a positive step towards integration and we believe it would be prudent to follow further along the path.