Nature of trade policy between Lithuania and Russia: a study on the application of trade barriers in the period of 2007-2014
ENLithuania being a member of the European Union maintains very close international trade relations (based on bilateral agreements) with its immediate neighbour – Russia. The recurrent trade tensions between Lithuania and Russia inspired theoretical and empirical investigation into an acute economic and political problem. In view of that, this article addresses a research problem: What tariff and non-tariff barriers are usually applied to Lithuanian exports to Russia? The aim of this article is to explore the character of trade policy between Lithuania and Russia from the standpoint of trade barriers, which were applied starting 1998. The object of the research is tariff and non-tariff trade barriers, which are applied for Lithuania’s exports to Russia. It is of key importance to stress that Russia’s trade protectionist policy concerning Lithuanian products has rather the character of prohibition and power demonstration than that of internal market protection. The study is based on a theoretical analysis of economic theory in order to provide arguments for the economic benefit of removing trade barriers, as well as to systemise the structure of existing tariff and non-tariff trade barriers.This structure could be used for further analyses of recognition of trade restrictions application in other countries. The European Commission’s TARIC Consultation methodology of application of trade barriers for EU’s export to Russia, as well as the methodology of the World Trade Organization for trade profiles was applied for systemisation of various trade restrictions. The empirical findings reflect international trade tendencies between Lithuania and Russia in the period of 2007–2014 and tariff and non-tariff barriers, which were practically applied on export from Lithuania to Russia. The results of the comparative empirical analysis could be used for devising of future measures concerning Lithuania–Russia international trade relations. [From the publication]
