Estimating the Economic Effects of Reducing Non-Tariff Barriers in the EEU

The report provides the first comprehensive assessment of the effects of non-tariff barriers on mutual trade in the EEU and gives recommendations as to how to remove them. It is based on a poll of 530 Russian, Kazakh and Belarusian exporters. In the research non-tariff barriers are divided into two groups. The first group includes non-tariff barriers such as sanitary and phytosanitary measures, technical barriers to trade, quotas, prohibitions, and quantitative controls. The second group comprises price and competition controls (the institute of “special importers,” sale restrictions, restrictions on public procurement, various subsidies). The second group of barriers is often referred to as “sand in the wheels,” because it hinders the movement of goods and in principle can be fully removed. The authors have come to a conclusion that this very group of barriers possesses a more negative influence on trade. Therefore, the main policy efforts should be directed at removing “sand in the wheels” of mutual trade.