Delegation of the European Union to Russia

Production across borders: the importance of global value chains

Bruxelles, 16/02/2018 - 08:27, UNIQUE ID: 180216_1
Press releases

On 19 February, Kaliningrad will host an international conference “Openness and integration of EU and Russian economies. Global value chains” that is organised by the Delegation of the European Union to the Russian Federation together with Immanuel Kant Baltic Federal University under the "EU-Russia Public Diplomacy" project.

In a world that looks for better products that are lighter, cheaper, and more intelligent, Global Value Chains (GVC) address the trade challenges of the 21st century. Today, airplanes are assembled from thousands and thousands of different parts, and no country manages that on its own; software constitutes over a third of the value of a car; and even toothbrushes are no longer produced by any one country singlehandedly.

 From the end of the 20th century until now, global trade has experienced some major transformations, and one of the most important changes is related to the flourishing of Global Value Chains (GVCs). According to different estimates, 60% to 80% of all trade operations are part of GVCs. The development of GVCs regionally and globally and the growth of the share of trade operations taking place within GVCs prove that globalization continues to be the leading trend of the world economy, even if in recent years its expansion has been somewhat stalled by the global economic crisis. There is considerable potential for GVCs to develop in the course of closer economic cooperation between the EU and its member states and Russia.

Russia’s GVC participation index is above world average, but does the current state of affairs satisfy all of the country’s needs? And doesn’t it mainly reflect the supplies of energy and semi-finished products? What policy conditions are needed for a country to become more integrated into the global production processes? Can firms be successful within the boundaries of a single country? Is it possible to diversify exports without stimulating imports?

High-calibre Russian and EU experts, as well as Immanuel Kant Baltic Federal University professors and undergraduate and postgraduate students will discuss these and other issues during the conference, the second in a series of three international symposia providing a much-needed space for discussion on these issues, very relevant for both Russia and the EU. The first conference on GVCs was organized under the "EU-Russia Public Diplomacy" project in St. Petersburg in October 2017; the third one will take place in Tomsk in spring.

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