Prospects of the EAEU Single Services Market

Abstract

The paper analyzes the formation of a single services market in the Eurasian Economic union. Free trade of services plays an important role in the Eurasian economic integration. It contributes to the development of cross-border trade and business ties of the EAEU partners. The impact of services sector on reciprocal and international trade of member-states is expected to grow further in future as a result of deepening of economic integration and expanding of external economic relations of the EAEU.The paper reviews economic and institutional factors, which may hinder integration of member-states services markets. Among economic impediments the author highlights such factors as a low volume of intraregional trade in services, member-states' orientation on third countries in trade in services, a low level of diversification of brunch structures of their trade in services, a low share of innovative and business services in reciprocal trade, as well as monocentric system of trade in services (with one dominant state in the Union as a main supplier and consumer of services). As an institutional factor the author regards a lack of supranational mechanism of liberalization of reciprocal trade in services. Eurasian economic commission elaborates the plans of liberalization of trade in services. However the power of Commission to influence the decision making process in this sphere is limited by the member-states. The regulation of a single services market belongs to the authority of the Supreme Eurasian Economic Council and is beyond of the scope of direct competences of the Commission.