Trade Policy

Due to their history, the countries of the Commonwealth of Independent States (CIS) are economically interconnected in a way that creates strong trade dependencies and severely limits their circle of potential trading partners. These trade structures – which for geographic reasons are often poorly diversified – leave the transformation countries of Eastern Europe particularly susceptible to external trade shocks.

The challenge for many of these transformation countries is thus the formulation and implementation of trade policy strategies that open new geographic markets and simultaneously deepen existing trade relationships.

Berlin Economics provides guidance to the decision-makers formulating these targeted trade policies. To help countries going through the process of trade liberalization, we also provide analysis of the results that can be expected from trade integration plans – specifically the reduction of tariffs and barriers to trade and membership in international trade organizations like the WTO. This analytic work is essential to both secure the necessary political support for trade policies and to identity potential preliminary risks. Berlin Economics also guides countries that are deepening their integration with the European Union and the Eurasian Economic Union, and provides recommendations for specific negotiation strategies.

When working with existing free trade agreements, Berlin Economics identifies trade barriers that still exist and negatively affect exports. We thus strengthen countries in their negotiations by providing economic arguments and constructive recommendations for the effective reduction of trade obstacles. The Republic of Moldova, for example, achieved an increase in the tariff quotas for certain agricultural products exported to the EU as a result of our advice.

However, opening new markets takes more than merely reducing trade barriers – it is also important to actively help businesses realize the new export possibilities. As the second instrument of a successful foreign trade policy, targeted export promotion is thus another focus of Berlin Economics’ consulting work. We help export promotion agencies and other government offices identify products and sectors with significant export potential to enable targeted promotion, and advise on the application of specific instruments to promote exports.

The result is more trade with a greater number of partners. That not only means access to new markets for export businesses, but also an increase in the competitiveness of domestically oriented businesses, which can import materials more cheaply. A successful trade policy leads to greater and more stable economic growth – which manifests in improved income.