Ulf SCHNEIDER,
Chairman of the Board of Lisbon – Vladivostok Business Initiative,
SCHNEIDER GROUP President & Founder
Mr. Schneider, your activity in the field of business diplomacy and the construction of economic bridges between West and East has contributed to the development of international business contacts for many years. Could you please share your vision of the nearest prospects and trends in the space from Lisbon to Vladivostok?
According to solid academic studies, the EU could increase its exports to the countries of the Eurasian Economic Union by more than 50 percent, if there was a comprehensive trade agreement between the two unions. The other way round, the numbers look slightly lower, however, also significant. The economic benefits are obvious, but close economic cooperation between the EU and the EAEU would have advantages that go far beyond economics. An agreement would not only offer a strong statement in favour of multilateralism and against growing protectionism, but it would also provide an anchor of stability for an era of the next generation, and it would contribute to bringing the Chinese-led Belt & Road Initiative into better balance.
If integration is so attractive what impedes closer cooperation between two unions?
Frequent arguments against official cooperation between the EU and the EAEU are Russia's dominance among the five EAEU countries. The particular aspects hindering such cooperation are the facts that Minsk II must first be implemented, and that Russia should stop its protectionism. It is also often said that the U.S. are against such an economic space, or at least that Poland and the Baltic States oppose it.
There is no doubt that Russia is practicing some protectionism. However, it is similar to that of the U.S. (and this may not change with the new U.S. administration) and China and, to a certain extent, of the EU. Talks with the EAEU would help to reduce protectionism. Politically, the U.S. would not welcome an economic space from Lisbon to Vladivostok. Europe did not interfere with the new USMCA agreement (previously NAFTA), even though USMCA is a clear example of the law of the strongest, not the strength of the law.
What, in your opinion, are possible mechanisms for ensuring political and economic stability in the EAEU space?
The role of the force factor in international relations can hardly be overestimated. It would also be wrong to call this factor positive. It obviously must be taken into consideration. However, in the modern world, where stability and security are the key factors of economic growth, there are other, non-power instruments of international relations. Since 2015, both European and Eurasian businesses in their Initiative Lisbon-Vladivostok promote the creation of a common economic space within the borders of the EU and the EAEU. Such an agreement of the EU and the EAEU would also greatly increase the importance of the Eurasian Commission.
The growing influence of supranational institutions in the space from Lisbon to Vladivostok, of course, can accelerate the integration processes, but the future of the EAEU has recently been increasingly associated with the integration processes led by China. What do you think about the future of relations between the EU and China?
One of the questions commonly raised is how the Lisbon-Vladivostok project relates to the Belt and Road Initiative. The answer is simple: it is not in competition, but rather it is the logical European-Eurasian complement. Common standards of the EU and the EAEU would be the benchmark applying to China and also to the newly created Asian trade agreement of 16 countries, called RCEP. The concerns of citizens of both unions regarding the Chinese and their New Silk Road could thus be addressed and better balanced.
How do you see the concrete steps in the implementation of the initiative of a common economic space from Lisbon to Vladivostok?
While the idea of an economic space from Lisbon to Vladivostok is not new, it has so far remained a vision rather than a concrete plan, though that vision is for instance reflected in the coalition agreement of the current German government of Chancellor Angela Merkel.
Fortunately, however, there was the first small breakthrough in the recent three years. Various constructive discussions took place between the Eurasian Economic Commission and the EU Commission at a working level. These included the initiatives such as the Lisbon-Vladivostok working group, which is supported by more than 100 companies and associations from twelve EU and EAEU countries, associations like the German-Russian Chamber of Commerce (AHK), the German Eastern Business Association (Ostausschuss), Russian Union of Industrialists and Entrepreneurs (RSPP), Belarusian Chamber of Commerce and Industry (BelCCI), French-Russian Chamber of Commerce (CCIFR), Italian Confindustria-Russia, such companies as Siemens, Schneider-Electric, Raiffeisen International (Austria), Severstal (Russia), and others. An international executive board was established with members from Austria, Belarus, Belgium, France, Germany, Italy, and Russia, which will coordinate further developments. To make more concrete proposals for the next step forward, the Task Forces institution was launched. Task Forces are working to develop expert proposals on specific issues. These groups include experts from different countries and organizations. The tasks of such groups include the preparation of position papers on the position of the business on a specific issue, as well as ways of solving it. The customs and transport, technical regulation, visa facilitation, taxation are on the agenda of Task Forces' active work. More Task Forces are on the way.
What role do you see for business in the Republic of Belarus in creating a common economic space from Lisbon to Vladivostok?
It is the business interests that lie at the heart of our Initiative. The role of Belarus in the EAEU is difficult to overestimate, as is the role of its business and, in particular, the role of the largest business association – the Belarusian Chamber of Commerce and Industry. We highly appreciate that the Chairman of the BelCCI Vladimir Ulakhovich has not only joined but also has become a member of the Board of the Lisbon-Vladivostok Initiative. His personal and organizational support is essential to further advance the Initiative. I would like to note that the participation of Belarusian business in the activities of the Task Forces is very important for us. We especially appreciate the intellectual contribution of our Belarusian colleagues. In particular, we have already seen the active participation of Belarusian experts in such areas as technical regulation and the Green Deal. The first meetings of these groups have already taken place this year. Based on the results of the meetings, program documents on the problems of each of the groups will be prepared. In summer we plan to submit these documents for consideration to the leadership of the EU and the EAEU. We expect even greater involvement from our Belarusian colleagues and appreciate their high expertise.
Building a common economic space from Lisbon to Vladivostok should indeed be mutually beneficial, especially in certain areas. What will balance future integration?
The support of the German Federal Ministry for Economic Affairs contributed to the first results. Economic research studies show that the EU business would benefit more than the business from the EAEU. To make it a real win-win situation, the EU should consider the interests of the EAEU countries, for instance, significant visa liberalization, just like these countries did for the EU citizens. This, in turn, would benefit the EU businesses, for example, those working in tourism, aviation and fashion.
Such a common economic space can be part of the European-Eurasian security architecture, from Lisbon to Vladivostok or even from Tokyo to Vancouver (via Europe), and should include countries such as Georgia, Serbia, Moldova, and Ukraine. Trade can be decisive in power politics. And as the tragic Ukraine conflict has shown, the nation with the power to set regulations on technical standards is the one that has the upper hand in foreign trade. The New Silk Road and the new Asian trade agreement RCEP might become another example for that. The EU and the EAEU could balance this with harmonized standards and regulations within the vision of a common economic space from Lisbon to Vladivostok.
The Belarusian Chamber of Commerce and Industry joined the Common Economic Space from Lisbon to Vladivostok Initiative (Lisbon-Vladivostok) in May 2018. The Initiative was founded by businesses, business associations and think tanks of the EU and EAEU member states in 2015 for a multi-level dialogue between the European Commission and the Eurasian Economic Commission to harmonize all necessary procedures in technical and customs regulations, logistics, tax and financial procedures, environmental protection, digitalization, and others.
The Board of the Lisbon-Vladivostok Initiative includes the Chairman of the Belarusian Chamber of Commerce and Industry Vladimir Ulakhovich, Former Economic Delegate for the Austrian Chamber of Commerce Dietmar Fellner, President of Confindustria Russia Ernesto Ferlenghi, CEO of the German Eastern Business Association Michael Harms, President of the CCI France Russie Emmanuel Quidet, Representative of the German-Russian Forum Alexander Rahr, Chairman of the Board of the German-Russian Chamber of Commerce Matthias Schepp, President of the Russian Union of Industrialists and Entrepreneurs Alexander Shokin, President of the AEB, Vice President of Schneider Electric Johann Vanderplaetse.
The first Board meeting of the Lisbon-Vladivostok Initiative took place as a video conference on November 3, 2020. Participants discussed key achievements in the development of the common economic space from Lisbon to Vladivostok, strategic areas of work in 2021, and possible signing of the memorandum of cooperation with the Eurasian Economic Commission.
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