Eurasian Economic Union: what is it, countries. Eurasian Economic Union. Goals and history of creation

The Eurasian Economic Union is an international organization for regional economic integration that has international legal personality and was established by the Treaty on the Eurasian Economic Union. The EAEU ensures freedom of movement of goods, services, capital and work force, as well as the implementation of coordinated, coordinated or unified policies in sectors of the economy.

The member states of the Eurasian Economic Union are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and Russian Federation.

The EAEU was created for the purpose of comprehensive modernization, cooperation and increasing the competitiveness of national economies and creating conditions for stable development in the interests of improving the living standards of the population of the member states.

Customs Union of the EAEU

Customs Union The EAEU is a form of trade and economic integration of member countries, providing for a single customs territory within which customs duties and economic restrictions are not applied in mutual trade in goods, with the exception of special protective, anti-dumping and countervailing measures. At the same time, member countries of the Customs Union apply uniform customs tariffs and other regulatory measures when trading with third countries.

The single customs territory of the Customs Union consists of the territories of the member countries of the Customs Union, as well as artificial islands, installations, structures and other objects over which the member states of the Customs Union have exclusive jurisdiction.

Member countries of the Customs Union:

  • Kazakhstan - from July 1, 2010
  • Russia - from July 1, 2010
  • Belarus - since July 6, 2010
  • Armenia - since October 10, 2014
  • Kyrgyzstan - since May 8, 2015

Officials of the member states of the Customs Union have repeatedly stated that they view this organization as open to the entry of other countries. Negotiations are already underway with some countries to join the Customs Union, so it is likely that the territory of the Customs Union will soon be significantly expanded.

Technical regulation in the EAEU Customs Union


Technical regulation is one of the key elements of integration of the member states of the Customs Union.

The mechanisms contained in technical regulation make it possible to eliminate numerous, in many cases artificially created, technical barriers to trade, which are a serious problem for business. This is helped by the legal framework created over the past few years, including thanks to the efforts of specialists from the Eurasian Economic Commission.

Within the framework of the Customs Union and the Eurasian Economic Community, the following main international agreements have been adopted to date, designed to simplify the movement of goods on the territory of the participating states:

  • Agreement on the implementation of a coordinated policy in the field of technical regulation, sanitary, veterinary and phytosanitary measures;
  • Agreement on common principles and rules of technical regulation;
  • Agreement on the Fundamentals of Harmonization technical regulations;
  • Agreement on the application of the Unified Mark of Product Circulation on the market of the EAEU Member States;
  • Establishment Agreement information system EAEU in the field of technical regulation, sanitary, veterinary and phytosanitary measures;
  • Agreement on the circulation of products subject to mandatory assessment (confirmation) of conformity in the territory of the Customs Union;
  • Agreement on mutual recognition of accreditation of certification bodies (conformity assessment) and testing laboratories (centers) performing conformity assessment work.

You can obtain detailed information about technical regulation in the EAEU Customs Union from a special brochure prepared by specialists of the Eurasian Economic Commission:

Brochure of the Eurasian Economic Commission (PDF, 3.4 MB)

Member States of the Customs Union


The Customs Union (CU) is an official association based on the agreement of the participating countries on the abolition of customs borders between them, and accordingly the abolition of duties. Also, the basis for the functioning of the union is the use of a single tariff for all other states. As a result, the Customs Union has created a huge single customs territory, within which goods are moved without the expense of crossing customs borders.

Although the Customs Union was legally created in 2010, it actually began to work only on July 1, 2011, when acts on the creation of a single customs territory came into force in the participating countries, and all control and regulatory bodies were created and began to operate. At the moment, five states are members of the CU - Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan. Several other countries are official candidates to join the organization or are considering doing so.

Russia

The Russian Federation is the initiator and basis of the CU. This country has the most powerful economy among all participating countries, and within the Union it has the opportunity to increase the competitiveness of its goods within the common market, which, according to experts, will give it additional profits in less than 10 years, totaling $400 billion.

Kazakhstan

For Kazakhstan, participation in the Customs Union is primarily good because it allows it to enter an association that provides a total of up to 16% of world grain exports. Working in the same field, Kazakhstan and Russia had the opportunity to significantly influence the world grain market, changing its conditions in their favor. In addition, the rapidly developing agricultural industry of Kazakhstan in this way managed to significantly strengthen its position in the Russian Federation and other countries of the association.

Belarus

For Belarus, which has long been partially integrated with Russia into a single customs and economic field, participation in the Customs Union made it possible to expand the geography of preferential supplies of its products to several more countries, and also increased the influx of investments, in particular from Kazakhstan. According to experts, participation in the Customs Union annually brings Belarus up to $2 billion in additional profit.

Armenia and Kyrgyzstan


These countries have recently become members of the Customs Union. Their involvement made it possible to further strengthen the association’s position in the global energy market. These same countries have received preferential access to markets, the total volume of which significantly exceeds their economic capabilities, so they are predicted to accelerate GDP growth and the general well-being of the population.

In general, the Customs Union is considered as a mutually beneficial economic partnership of geographically and mentally close countries that have within the framework of the association equal rights and opportunities. Considering the prospects for the accession of new members, we can expect that in the near future the CU will become an even more powerful and influential economic bloc.

Eurasian Union


Eurasian Union is an integration project in the Eurasian space, the goal of which is the economic and political rapprochement of post-Soviet countries (at the same time, this association could potentially attract many other Eurasian countries outside former USSR). To date Eurasian integration implemented in the form of a number of alliances different levels, the most important of which are the EAEU Customs Union and the Eurasian Economic Union.

On May 29, 2014, a more advanced form of integration was created on the basis of the Customs Union and the Common Economic Space - Eurasian Economic Union (EAEU, EurAsEC), which began its work on January 1, 2015. The Chairman of the EAEU in 2015 was Belarus, and in 2016 - Kazakhstan.

At the EAEU level, a common market of 183 million people was formed. The union states - Kazakhstan, Russia and Belarus, as well as Armenia and Kyrgyzstan - pledged to guarantee the free movement of goods and services, capital and labor, as well as to implement a coordinated policy in energy, industry, agriculture, and transport.


[edit] History of Eurasian integration


In ancient times, large state entities a number of peoples. It is in this Eurasian area that, according to the most common hypotheses, the historical ancestral homelands of the Indo-Europeans are located (the Indo-European peoples include the Slavs, Armenians, Ossetians, Tajiks, etc.), the Turks (Kazakhs, Kyrgyz, Tatars, Uzbeks, etc.) and Finno-Ugric peoples ( Karelians, Mordvins, Udmurts, Mari, Komi, etc.). In the space of Eurasia, the Scythians, Sarmatians, Huns, Turks, Khazars, and Mongols created their own empire states.

Since the 16th century, Russia has become the largest state in the Eurasian space (in the 20th century - the Soviet Union). With the arrival of Russia in Eurasia, it became possible to unite this most important geopolitical region on the basis of agriculture and industrial production, while the Eurasian traditions of pastoralism and nomadic farming were largely preserved. The disintegration of the USSR in the 1990s disrupted the established economic ties, which led to a deep and prolonged socio-economic crisis, from which some post-Soviet states have still not emerged. It is very typical that the collapse Soviet Union Kazakhstan and some other Asian republics most opposed the USSR.

The initiator of Eurasian reintegration can rightfully be considered the President of Kazakhstan Nursultan Nazarbayev, who in March 1994 presented the project of the Eurasian Union, which at the first stage was to include Russia, Kazakhstan, Belarus, Kyrgyzstan, and Tajikistan. However, at that time, the destructive political processes in the post-Soviet space were still too strong, and full integration had to be postponed. Nevertheless, the unification process began. In 1995, the leaders of Kazakhstan, Russia, Belarus, and a little later Kyrgyzstan, Uzbekistan and Tajikistan signed the first agreement on plans to create a customs union.

Full-fledged Eurasian integration became possible with the coming to power in Russia of Vladimir Putin, who supported the ideas of Nursultan Nazarbayev; they were also supported by the President of Belarus Alexander Lukashenko (by January 26, 2000, the Union State of Russia and Belarus was created as a special integration association).

[edit] Chronology of integration

  • October 10, 2000- in Astana (Kazakhstan), the heads of state (Belarus, Kazakhstan, Russia, Tajikistan, Kyrgyzstan) signed the Treaty establishing the Eurasian Economic Community (EurAsEC). The Treaty lays down the concept of close and effective trade and economic cooperation to achieve the goals and objectives defined by the Treaty on the Customs Union and the Common Economic Space. EurAsEC became the first effective organization ensuring the integration process in the Eurasian space.
  • May 30, 2001- the agreement on the creation came into force EurAsEC consisting of Kazakhstan, Russia, Belarus, Kyrgyzstan and Tajikistan. In 2006-2008 Uzbekistan also participated in the EurAsEC; since 2002, Ukraine and Moldova received observer status, and since 2003, Armenia.
  • February 23, 2003- the presidents of Russia, Kazakhstan, Belarus and Ukraine announced their intention to form a Common Economic Space (CES).
  • October 6, 2007- the EurAsEC summit was held in Dushanbe (Tajikistan), at which the concept of the Customs Union of Russia, Kazakhstan and Belarus was adopted. Created Customs Union Commission- a single permanent regulatory body of the EurAsEC Customs Union (in 2012, powers were transferred to the Eurasian Commission).
  • July 6, 2010- agreements on Customs Union (CU) as part of Russia, Kazakhstan and Belarus, earned Unified Customs Code.
  • December 9, 2010- Russia, Kazakhstan and Belarus signed all 17 documents on the creation Common Economic Space (SES)(agreements on common rules of competition, on the regulation of support for agriculture and industrial subsidies, on the regulation of railway transport, services and investments, on the protection of intellectual property, on the rules of technical regulation, on government procurement, on the status of migrants and combating illegal migration from third countries , on coordinated macroeconomic and monetary policy, on free movement of capital, on regulation natural monopolies and access to their services, on the creation of a single market for oil and petroleum products).
  • July 1, 2011- earned Single customs territory Customs Union: customs control has been abolished on the borders of Russia, Kazakhstan and Belarus (it has been moved to the outer contour of the borders of the Customs Union).
  • October 18, 2011- in St. Petersburg, following a meeting of the Council of Heads of Government of the Commonwealth countries, an Agreement on CIS free trade zone. The CIS FTA provides for “minimizing exceptions from the range of goods to which import duties apply”; export duties must be fixed at a certain level, and subsequently phased out.
  • November 18, 2011- an agreement on the creation of the Eurasian Economic Commission was signed.
  • January 1, 2012- as a result of the entry into force of the relevant agreement, a Common Economic Space (SES) as a common market of Russia, Belarus and Kazakhstan (since 2014 - SES of the Eurasian Economic Union), earned Eurasian Commission. The objective of the SES is to ensure the “four freedoms” - the movement of goods, capital, services and labor - as well as ensuring the beginnings of coordination of the economic policies of the participating states in relation to macroeconomics, finance, transport and energy, trade, industry and agriculture.
  • September 20, 2012- the agreement on CIS FTA between Belarus, Russia and Ukraine - the first three countries to ratify it. In 2012-2013 The treaty was also ratified by Kazakhstan, Armenia, Kyrgyzstan and Moldova; in a special order, Uzbekistan joined the FTA, and Tajikistan, although it signed the treaty, did not ratify it.
  • May 29, 2014- Russia, Belarus and Kazakhstan signed agreement on the creation of the Eurasian Economic Union (EAEU).
  • October 10, 2014- Armenia joined the Treaty on the Eurasian Economic Union. The EurAsEC organization was liquidated in connection with the fulfillment of its mission and the formation of the Eurasian Economic Union.
  • December 23, 2014- Kyrgyzstan joined (signed accession agreements) to the Eurasian Economic Union. Armenia's accession to the EAEU was approved.
  • January 1, 2015- the agreement on the EAEU came into force, thus The Eurasian Economic Union was created.
  • May 8, 2015- Presidents of Russia, Belarus, Kazakhstan and Armenia signed documents on Kyrgyzstan's accession to the Treaty on the EAEU.
  • May 14, 2015- Iran plans to join the free trade zone with the EAEU
  • May 25, 2015 - an agreement on a free trade zone was signed between the EAEU and Vietnam.
  • May 27, 2015- Egypt has submitted an application to create a free trade zone with the EAEU.
  • August 12, 2015- The Eurasian Union has abolished the customs border with Kyrgyzstan.

[edit] Eurasian Economic Union


On May 29, 2014, in Astana, the presidents of Russia, Belarus and Kazakhstan signed an agreement on the creation of the Eurasian Economic Union (EAEU), which will come into force on January 1, 2015. On October 10, 2014, Armenia joined the union (accession agreements were signed), and on December 24, 2014, Kyrgyzstan joined (accession agreements were also signed).

Thus, at the moment, the formation of a common market of 183 million people has been completed, integration is increasing compared to integration at the level of the Customs Union. The union states undertake to guarantee the free movement of goods and services, capital and labor, as well as to implement coordinated policies in key sectors of the economy: energy, industry, agriculture, transport.

[edit] Composition of the EAEU

  • Armenia(since October 10, 2014)
  • Belarus(since May 29, 2014)
  • Kazakhstan(since May 29, 2014)
  • Kyrgyzstan(since December 23, 2014)
  • Russia(since May 29, 2014)
  • Moldova- has the status of an observer state in the Eurasian Economic Union (since April 14, 2017)

Other potential participants

  • Tajikistan- in 2012 announced his intention to join the Customs Union and the EAEU after Kyrgyzstan.
  • Mongolia

On July 21, 2015, Syria announced its desire to join the EAEU. On August 11, 2016, Tunisia also announced a similar intention through its ambassador to the Russian Federation.

[edit] Integration levels


[edit] Common Economic Space

On January 1, 2012, the Common Economic Space of Russia, Belarus and Kazakhstan was created, which at that time became the closest form of integration of these countries. Key points of the agreements on the SES came into force in July 2012. The Customs Union is part of the agreements on the SES.

The SES is designed to ensure freedom of movement of goods, capital, services and labor between member states. The goal is also to ensure the beginnings of coordination of macroeconomics and the financial sector, transport and energy, trade, industrial and agro-industrial complexes and other important areas of the economy.

The composition of the SES is the same as that of the Eurasian Economic Union (Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia). Tajikistan, Uzbekistan and Abkhazia also express interest in joining the SES.

[edit] Customs Union

Customs Union of the EAEU(until 2014 - the Customs Union of the Eurasian Economic Community, CU EurAsEC) - one of the forms of economic integration in the post-Soviet space. Among the people and the media, this organization is simply called “TS”. It was the term “Customs Union” in 2010-2014. was most often mentioned in the media when discussing economic integration in the post-Soviet space.

The main body of the Customs Union of Belarus, Kazakhstan and Russia is the Supreme Eurasian Economic Council, which includes the heads of state and government of the Customs Union. At the level of heads of state, the council meets at least once a year, at the level of heads of government - at least twice a year. Decisions are made by consensus and become binding in all participating states.

The functions of the regulatory body have been performed by the Eurasian Economic Commission since January 1, 2012.

[edit] Vehicle composition

Currently, the Customs Union includes the following states:

[edit] Candidates for membership in the CU

  • Tajikistan- in 2012 announced his intention to join the Customs Union and the EAEU after Kyrgyzstan. The entry of Kyrgyzstan was delayed, but it took place. Negotiations with Tajikistan are also dragging on.
  • Mongolia- announced its intention to join the Customs Union and the EAEU in 2016.
  • Moldova- On April 14, 2017, it received the status of an observer state at the Eurasian Economic Union. Since, as of 2017, in Moldova the president is in favor of Eurasian integration, and the parliament is against it, then further fate integration with Moldova depends on the development of the internal situation in this country.
    • Gagauzia- at a referendum held in 2014, she advocated joining the Customs Union. It should be taken into account that Gagauz autonomy is not an independent country either de jure or de facto. This is an autonomous republic within Moldova.
  • Syria- also announced its desire to join the Customs Union back in 2010. Currently, preparations are being made for the signing of an agreement on a free trade zone between Syria and the Customs Union.

A number of unrecognized or partially recognized states also want to join the CU (due to their status, they face obstacles in realizing their intentions):

  • Abkhazia- On February 16, 2010, she informally announced her desire to join the Customs Union.
  • South Ossetia- On October 15, 2013, she announced her intention to join the Customs Union.
  • Donetsk People's Republic
  • Lugansk People's Republic- in 2014 announced its intention to join the Customs Union.
  • Pridnestrovian Moldavian Republic- On February 16, 2012, she announced her intention to join the Customs Union.

Former potential candidates

  • Ukraine- according to its long-standing tradition, the Ukrainian leadership tried to sit on two chairs at the same time, moving closer to both the European Union and the Customs Union, but the CU member states made it clear that such a development of events is unacceptable. Currently, the issue of joining the Customs Union has stalled due to civil war in Ukraine. The current Ukrainian leadership has set a course for the so-called “European association”, which involves the introduction of European rules and regulations in Ukraine, as well as the opening of the domestic market for European manufacturers. In fact, this is destroying and in many ways has already destroyed the remnants of the high-tech industry in Ukraine (Ukrainian exporters lost 29% of exports to Russia in 2014, missing $3.9 billion, while exports to the EU grew by only $1 billion (mainly in agriculture ).

[edit] Free trade zone

On September 20, 2012, the free trade area of ​​the commonwealth countries (CIS FTA) began operating between Belarus, Russia and Ukraine, which ratified the agreement. In 2012-2013 The treaty was also ratified by Kazakhstan, Armenia, Kyrgyzstan and Moldova, Uzbekistan joined the FTA in a special manner, and Tajikistan signed the treaty, but has not yet ratified it.

A free trade area would "minimize exceptions to goods subject to import duties" and export duties would first be fixed and then phased out.

Agreements on a free trade zone bilaterally by individual EAEU countries were also signed with Serbia (a free trade regime has been in effect between Serbia and Russia since 2000, with Belarus - since March 31, 2009, with Kazakhstan - since October 7, 2010). The agreement with Vietnam was signed on May 25, 2015. On May 27, 2015, Egypt submitted an application to form an FTA with the EAEU.

In 2014, it was planned to sign a similar agreement on a free trade area with New Zealand (now in question due to New Zealand’s participation in anti-Russian sanctions). Negotiations on concluding such agreements are also underway with the European Free Trade Association (Switzerland, Norway, Iceland, Liechtenstein) , Israel, India, Syria, Montenegro and a number of Latin American countries.

In total, up to 40 countries intend to join the free trade zone with the EAEU; as of the beginning of 2017, about 50 countries expressed a desire to cooperate with the EAEU.

[edit] Countries that have signed the FTA

  • Vietnam- the agreement was signed on May 29, 2015. Came into force 60 days after ratification in accordance with national legislation by all EAEU countries and Vietnam. The law on ratification of the FTA agreement was signed on May 2, 2016 by Russian President Vladimir Putin. On May 31, the law on ratification of the FTA agreement was signed by the President of Belarus Alexander Lukashenko, and on June 2 by the President of Kyrgyzstan Almazbek Atambayev.

[edit] FTA at the negotiation stage

  • Egypt- the application was submitted on May 27, 2015.
  • Thailand- On April 1, 2016, Russia and Thailand began negotiations on the creation of a free trade zone.
  • Iran- Negotiations began in 2015.
  • Mongolia- will begin the stage of negotiations on a free trade zone and possible accession in the fall of 2016.
  • Serbia- is negotiating the creation of an FTA with the EAEU

[edit] Expressed interest in cooperation

[edit] What does joining the EAEU give?

The EAEU is intended to improve economic interaction and significantly simplify the lives of citizens of Eurasian countries in a number of respects:

  • Customs control procedures will be weakened or eliminated.
  • Economic, transport, energy, and migration policies will be coordinated.
  • Legislation regarding doing business and trade will be partially unified.
  • On June 19, 2015, it was announced that international roaming would be canceled within the EAEU.

[edit] Reaction of Western countries

Western politicians are by no means enthusiastic about the prospect of economic and political reintegration in the post-Soviet space. US Secretary of State Hillary Clinton, for example, said that “the United States will try to prevent the re-creation of the Soviet Union.”

The only thing the United States has achieved so far in obstructing Eurasian integration is organizing a coup in Ukraine in February 2014, as a result of which the country actually collapsed during the Ukrainian crisis. At the same time, the part of Ukraine that remained under the control of American puppets was imposed a suicidal course of breaking economic ties with the Russian Federation and “European association” with the EU. The collapse of Ukrainian industry and a serious energy crisis were clearly evident already in 2014.

Despite such clear intentions and actions of the United States, European political scientists believe that Russia will be able to expand its borders to approximately Soviet size in the next 20-30 years.

Putin, meanwhile, does not miss the opportunity to tease Europeans who are now suffering from separatist sentiments, hinting at inviting certain European countries to the Customs Union. Nazarbayev allows Turkey to be involved in Eurasian integration.

Countries of the Customs Union: list

In the modern world, many countries unite into unions - political, economic, religious and others. One of the largest such unions was the Soviet Union. Now we see the emergence of the European, Eurasian, and also Customs unions.

The Customs Union was positioned as a form of trade and economic integration of a number of countries, which provides not only a common customs territory for mutually beneficial trade with the absence of duties, etc., but also a number of issues regulating trade with third countries. This agreement was signed on October 6, 2007 in Dushanbe; at the time of its conclusion, the union included the Russian Federation, Kazakhstan and Belarus.

The first article of the contract on the movement of goods within this territory states the following:

  • There is no customs duty. And not only for goods own production, but also for cargo from third countries.
  • There are no economic restrictions other than compensatory and anti-dumping ones.
  • The countries of the Customs Union apply a single customs tariff.

Current countries and candidates

There are both permanent member countries of the Customs Union that were its founders or joined later, and those that have only expressed a desire to join.

Candidates for membership:

TS managers

There was a special CU commission, which was approved at the time of signing the agreement on the Customs Union. Its rules were the basis of the legal activities of the organization. The structure worked and remained within these legal frameworks until July 1, 2012, that is, until the creation of the EEC. The highest body of the union at that time was a group of representatives of the heads of state (Vladimir Vladimirovich Putin (Russian Federation), Nursultan Abishevich Nazarbayev (Republic of Kazakhstan) and Alexander Grigoryevich Lukashenko (Republic of Belarus)).

The following prime ministers were represented at the level of heads of government:

  • Russia - Dmitry Anatolyevich Medvedev;
  • Kazakhstan - Karim Kazhimkanovich Masimov;
  • Belarus - Sergei Sergeevich Sidorsky.

Purpose of the Customs Union


The countries of the Customs Union, with the main goal of creating a single regulatory body, meant the formation of a common territory, which would include several states, and all duties on products would be abolished on their territory.

The second goal was to protect one’s own interests and markets, first of all, from harmful, poor-quality, and also competitive products, which makes it possible to smooth out all the shortcomings in trade economic sphere. This is very important, since protecting the interests of one’s own states, taking into account the opinions of the members of the union, is a priority for any country.

Benefits and prospects


First of all, the benefits are obvious for those enterprises that can easily purchase from neighboring countries. Most likely, these will only be large corporations and companies. As for the prospects for the future, contrary to some economists’ forecasts that the Customs Union will entail a decrease in the level of wages in the participating countries, at the official level, the Prime Minister of Kazakhstan announced an increase in salaries in the state in 2015.

That is why the world experience of such large economic entities cannot be attributed to this case. Countries that have joined the Customs Union can expect, if not rapid, but stable growth in economic ties.

Agreement

The final version of the Agreement on the Customs Code of the Customs Union was adopted only at the tenth meeting, 10.26.2009. This pact spoke of the creation of special groups that would monitor activities to bring the revised draft treaty into effect.

The countries of the Customs Union had until July 1, 2010 to make changes to their legislation to eliminate contradictions between this Code and the Constitution. Thus, another contact group was created to resolve problems arising from differences between national legal systems.

All the nuances related to the territories of the Customs Union were also finalized.

Territory of the Customs Union


The countries of the Customs Union have a common customs territory, which is determined by the borders of the states that have entered into an agreement and are members of the organization. The Customs Code, among other things, determines the expiration date of the commission, which was July 1, 2012. Thus, a more serious organization was created, which has much more powers and, accordingly, more people on its staff in order to fully control all processes. On January 1, 2012, the Eurasian Economic Commission (EAEC) officially began its work.

The Eurasian Economic Union includes member countries of the Customs Union: the founders - Russia, Belarus and Kazakhstan - and the recently joined states, Kyrgyzstan and Armenia.

The establishment of the EAEU implies a wider range of relationships in the freedom of movement of labor, capital, services and goods. Also, a coordinated economic policy of all countries must be constantly pursued, and a transition to a single customs tariff must be carried out.

The total budget of this union is formed exclusively in Russian rubles, thanks to the share contributions made by all member countries of the Customs Union. Their size is regulated by the Supreme Council, which consists of the heads of these states.

Russian has become the working language for the regulations of all documents, and the headquarters will be located in Moscow. The financial regulator of the EAEU is in Almaty, and the court is in the capital of Belarus, Minsk.

Bodies of the Union


The highest regulatory body is the Supreme Council, which includes the heads of participating states.

A judicial body was also created, which is responsible for the application of treaties within the Union.

The Eurasian Economic Commission (EEC) is a regulatory body that provides all the conditions for the development and functioning of the Union, as well as the development of new proposals in the economic sphere regarding the format of the EAEU. It consists of the Ministers of the Commission (deputy prime ministers of the Union member states) and the Chairman.

Main provisions of the Treaty on the EAEU


Of course, the EAEU, compared to the CU, has not only broader powers, but also a much more extensive and specific list of planned work. This document no longer has any general plans, and for each specific task the path for its implementation is determined and a special working group is created that will not only monitor the implementation, but also control its entire progress.

In the resulting agreement, the countries of the single Customs Union, and now the EAEU, secured an agreement on coordinated work and the creation of common energy markets. The work on energy policy is quite large-scale and will be implemented in several stages until 2025.

The document also regulates the creation of a common market for medical devices and medicines by January 1, 2016.

Great importance is attached to transport policy on the territory of the EAEU states, without which it will not be possible to create a single joint action plan. The development of a coordinated agro-industrial policy is envisaged, which includes the mandatory formation of veterinary and phytosanitary measures.

A coordinated macroeconomic policy provides an opportunity to translate all planned plans and agreements into reality. In such conditions, they are developed general principles interaction and is provided effective development countries

A special place is occupied by the common labor market, which regulates not only the free movement of labor, but also the same working conditions. Citizens who go to work in the EAEU countries will no longer need to fill out migration cards (if their stay does not exceed 30 days). The same simplified system will apply when medical care. The issue of exporting pensions and counting the length of service accumulated in a Union member country is also being resolved.

Expert opinions

The list of countries of the Customs Union may soon be replenished with several more states, but, according to experts, in order for full growth and influence on similar Western unions similar to the EU (European Union) to be noticeable, a lot of work and expansion of the organization is needed. In any case, the ruble will not be able to become an alternative to the euro or dollar yet for a long time, and the impact of recent sanctions has clearly shown how Western policy can work to serve its own interests, and that at the same time neither Russia itself nor the entire Union can actually do anything about it. As for Kazakhstan and Belarus specifically, the conflict in Ukraine showed that they will not give up their benefits to please Russia. The tenge, by the way, also fell sharply due to the fall of the ruble. And on many issues, Russia remains the main competitor of Kazakhstan and Belarus. However, at the moment the creation of the Union is adequate and the only the right decision, capable of helping to somehow strengthen relations between states in the event of further Western pressure on Russia.

It is now known which countries in the Customs Union are more interested in its creation. Despite the fact that even at the stage of its inception it was constantly haunted by all sorts of problems, the joint coordinated actions of all members of the Union make it possible to solve them as quickly as possible, which makes it possible to look into the future with optimism and hope for rapid development economies of all states participating in this agreement.

List of member countries of the Customs Union in 2017

The Customs Union is an agreement adopted by the participants of the Eurasian Economic Union, the purpose of which is abolition of customs duties in trade relations . Based on these agreements, common methods of implementation are created economic activity, a platform for quality assessments and certification.

Thanks to this it is achieved abolition of customs controls on the borders within the Union, are concluded general provisions regulation of economic activity for the external borders of the Customs Union. In view of this, a common customs space is being created, using a generally accepted approach to border control. One more distinctive feature is the equality of citizens of the customs area during employment.

Members

In 2017, the Customs Union consists of next members of the EAEU:

  • Republic of Armenia (since 2015);
  • Republic of Belarus (since 2010);
  • Republic of Kazakhstan (since 2010);
  • Kyrgyz Republic (since 2015);
  • Russian Federation (since 2010).

The desire to become a party to this agreement was voiced by Syria and Tunisia. In addition, we know about the proposal to include Turkey in the CU agreement. However, to date, no specific procedures have been adopted for these states to join the Union.

It is clearly visible that the functioning of the Customs Union serves good help to enhance economic relations countries located on the territory of the former Soviet countries. We can also say that the approach established in the agreement by the participating countries speaks of restoring lost connections in modern conditions.

Customs duties are distributed through a single sharing mechanism.

Given this information, it can be stated that the Customs Union, as we know it today, serves serious tool for the economic unification of countries that are members of the EAEU.

Stages of formation

To understand what the activities of the Customs Union are, it will not be amiss to gain an understanding of how it was formed to its current state.

The emergence of the Customs Union was initially presented as one of the steps in the integration of the CIS countries. This was evidenced in the agreement on the creation of an economic union, signed on September 24, 1993.

Step by step moving towards this goal, in 1995, two states (Russia and Belarus) entered into an agreement between themselves on the approval of the Customs Union. Later, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan also joined this group.

More than 10 years later, in 2007, Belarus, Kazakhstan and Russia signed a pact to unite their territories into a single customs region and approve the Customs Union.

In order to specify the previously concluded agreements, from 2009 to 2010, more than 40 additional agreements were concluded. Russia, Belarus and Kazakhstan have decided that, starting in 2012, a Common Market thanks to the unification of countries into a single economic space.

On July 1, 2010, another important agreement was concluded, which set into motion the work of the Unified Customs Tariff and the Customs Code.

On July 1, 2011, the current customs controls at the borders between countries were canceled and general rules were established at the borders with states that are not in the agreement. Until 2013, uniform legislative norms for the parties to the agreement will be formed.

2014 – The Republic of Armenia joins the Customs Union. 2015 – The Republic of Kyrgyzstan joins the Customs Union.

Territory and management


The unification of the borders of the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan became the basis for the emergence of the Common Customs Space. This is how the territory of the Customs Union was formed. In addition, it includes certain territories or objects under the jurisdiction of the parties to the agreement.

The management and coordination of the Eurasian Economic Union is carried out by two organs:

  1. Interstate Council- the highest body of a supranational nature, consists of heads of state and head of government of the Customs Union.
  2. Customs Union Commission– an agency that deals with issues related to the formation of customs rules and regulates foreign trade policy.

Directions and conditions


When creating the Customs Union, countries declared the main goal socio-economic progress. In the future, this implies an increase in trade turnover and services produced by business entities.

The increase in sales was initially expected directly in the space of the vehicle itself due to following conditions:

  1. The abolition of customs procedures within the Union, which was supposed to make products produced within a single space more attractive through the abolition of duties.
  2. Increasing trade turnover by eliminating customs controls at internal borders.
  3. Adoption of uniform requirements and integration of safety standards.

Achieving goals and perspectives

Having collected available information about the emergence and activities of the Customs Union, we can come to the conclusion that the results of increasing the turnover of goods and services are published much less frequently than news about the signing of new agreements, i.e. its declarative part.

But, nevertheless, analyzing the stated goals when creating the Customs Union, as well as observing their implementation, one cannot remain silent that simplification of trade turnover has been achieved and competitive conditions have been improved for economic entities of the Customs Union states.

It follows from this that the Customs Union is on the way to achieving its goals, however, in addition to time, this requires the mutual interest of both the states themselves and the economic elements within the Union.

Activity analysis

The customs union consists of countries that have the same economic background, but today these states are very different from each other. Of course, even in Soviet times, the republics differed in their specialization, but after gaining independence, many more changes occurred that affected the world market and the division of labor.

However, there are also common interests. For example, many participating countries remain dependent on the Russian sales market. This trend is economic and geopolitical in nature.

Throughout the whole time leading positions in the process of integration and stabilization of the EAEU and the Customs Union played Russian Federation. This was possible due to its stable economic growth until 2014, when prices for raw materials remained high, which helped finance the processes launched by the agreements.

Although such a policy did not predict rapid growth economy, it still assumed the strengthening of Russia’s position on the world stage.

To achieve these goals, the Republic increased tariffs on imported cars in the absence of its own production. Because of such measures it was necessary to install rules for certification of light industry goods, which hurt retail trade.

In addition, the standards adopted at the CU level were unified with the WTO model, despite the fact that Belarus is not a member of this organization, unlike Russia. Enterprises of the Republic have not received access to Russian import substitution programs.

All this served as obstacles for Belarus on the path to achieving its goals in full.

It should not be overlooked that the signed CU agreements contain various exceptions, clarifications, anti-dumping and countervailing measures, which have become an obstacle to the achievement of common benefits and equal conditions for all countries. At various times, virtually every participant in the agreement expressed disagreement with the terms contained in the agreements.

Although customs posts on the borders between the parties to the agreement were eliminated, border zones between countries have been preserved. Sanitary control at internal borders also continued. A lack of trust in interaction practice has been revealed. An example of this is the disagreements that flare up from time to time between Russia and Belarus.

Today it is impossible to say that the goals that were declared in the agreement on the creation of the Customs Union have been achieved. This is evident from the decrease in the turnover of goods within the customs area. There are also no benefits for economic development, when compared with the time before the agreements were signed.

But there are still signs that in the absence of an agreement the situation would deteriorate more rapidly. The manifestation of the crisis would be broader and deeper. A significant number of enterprises gain relative benefits by participating in trade relations within the Customs Union.

The agreements signed by the parties benefited the production of automobiles. Duty-free sales of cars assembled by manufacturers in participating countries have become available. Thus, conditions have been created for the implementation of projects that previously could not succeed.

What is the Customs Union? Details are in the video.

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TASS DOSSIER. The Eurasian Economic Union is an international integration economic association whose members are Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.

The union began work on January 1, 2015; replaced the Eurasian Economic Community (EurAsEC, operated in 2000-2014).

Creation of the EAEU

The EAEU was formed on the basis of the Customs Union and the Common Economic Space of Russia, Belarus and Kazakhstan (until 2015 they operated within the framework of the EurAsEC). The creation of the Eurasian Economic Union was first announced by the Presidents of the Russian Federation Dmitry Medvedev, Belarus Alexander Lukashenko and Kazakhstan Nursultan Nazarbayev in the Declaration on Eurasian Economic Integration, signed on November 18, 2011 at a meeting in Moscow.

On May 29, 2014, in Astana, the heads of Russia, Kazakhstan and Belarus Vladimir Putin, Nursultan Nazarbayev and Alexander Lukashenko signed the Treaty on the Eurasian Economic Union (ratified by Russia on October 3, Kazakhstan and Belarus on October 9, 2014).

In 2011, Kyrgyzstan announced its intention to join the EAEU, and in 2013, Armenia. The agreement on Armenia's accession to the union was signed on October 10, 2014 in Minsk (in fact, the republic became a member of the EAEU on January 1, 2015). On December 23 of the same year in Moscow, Kyrgyzstan concluded a similar agreement. On May 8, 2015, in Moscow, members of the organization signed documents on Kyrgyzstan’s accession to the Treaty on the EAEU. On May 20, the agreement was ratified by the parliament of the republic, and signed by the president on May 21. By August 6, 2015, ratification procedures for Kyrgyzstan’s accession to the EAEU were completed; On August 12, 2015, the Treaty on Kyrgyzstan’s accession to the EAEU entered into force.

Organizational goals

According to the document, the goals of the EAEU are the economic development of the participating countries, modernization and increasing the competitiveness of these states in the world market. When signing the agreement, the parties pledged to coordinate economic policies and guarantee the free movement of goods, services, capital and labor, to implement coordinated policies in key sectors of the economy (energy, industry, Agriculture, transport).

Structure and governing bodies

The highest body of the EAEU is the Supreme Eurasian Economic Council, which includes the presidents of the union member states. Its meetings are held at least once a year. The first since the start of the EAEU took place on May 8, 2015 in the Kremlin.

The heads of government of the participating states are members of the Eurasian Intergovernmental Economic Council. He ensures the implementation and control over the execution of decisions of the Supreme Council at the presidential level, gives instructions to the Eurasian Economic Commission, and also exercises other powers. Meetings are held at least twice a year. The first took place on February 6, 2015 in Gorki, at the residence of the head of the Russian government.

The permanent regulatory body of the union is the Eurasian Economic Commission. Among its tasks: ensuring conditions for the functioning and development of the union, as well as developing proposals on economic issues of cooperation.

In 2015, the presidency of the EAEU was held by Belarus. On February 1, 2016, the chairmanship passed to Kazakhstan.

Statistics

Currently, the EAEU (including Kyrgyzstan) occupies an area of ​​more than 20 million square meters. km with a population of 182.7 million people (as of January 1, 2016). According to the Eurasian Economic Commission, the total gross domestic product of the EAEU member countries in January-September 2015 amounted to 1.1 trillion US dollars, decreasing by 3% compared to the same period in 2014. The volume of industrial production in 2015 decreased by 3.4% ($907.1 billion). At the end of 2015, the volume of mutual trade of the EAEU member states amounted to $45.4 billion, which is 25.8% less than in 2014. The volume of foreign trade in 2015 compared to 2014 decreased by 33.6% - up to 579.5 billion dollars, including exports of goods - 374.1 billion dollars, imports - 205.4 billion. According to the official website of the organization, the EAEU countries produce 607.5 million tons of oil per year (or 14.6% of the world share), as well as 682.6 billion cubic meters. m of gas (18.4%).

On May 22, 2015, during the VIII Astana Economic Forum, an agreement was signed on the creation of the EAEU Business Council, the founders of which were the National Chamber of Entrepreneurs of Kazakhstan "Atameken", the Russian Union of Industrialists and Entrepreneurs, the Confederation of Industrialists and Entrepreneurs (employers) of Belarus, the Union of Industrialists and Entrepreneurs (employers) of Armenia, Kyrgyz Union of Industrialists and Entrepreneurs. The work of the Council will make it possible to establish a dialogue between the business circles of the EAEU member countries, as well as ensure their coordinated interaction with the Eurasian Economic Commission (EEC) and the leadership of states.

Creation of free trade zones

On May 29, 2015, in Kazakhstan, after a meeting of the Eurasian Intergovernmental Economic Council, an agreement on a free trade zone (FTA) between the EAEU and Vietnam was signed, which became the first international document on FTA between the EAEU and a third party. The agreement provides, in particular, the conditions for tariff liberalization of trade in goods between the states of the Union and Vietnam by reducing or zeroing the rates of import customs duties on a significant group of goods. The document will come into force 60 days after it is ratified in all EAEU countries and Vietnam in accordance with national legislation.

October 16, 2015 in the Kazakh village. Burabay, at a meeting of the Supreme Eurasian Economic Council, it was decided to begin negotiations on the creation of a free trade zone with Israel. In addition, negotiations are currently underway at the working group level on the possibility of concluding similar agreements with Iran, India and Egypt. Jordan and Thailand took the initiative to begin negotiations on the creation of an FTA with the EAEU.

In 2016, the countries of the Union plan to agree and sign with China a road map for connecting the projects of the EAEU and the Silk Road Economic Belt. The preparation of documents on this issue is currently being completed.

Cooperation with integration associations

On December 3, 2015, Russian President Vladimir Putin, addressing his annual message to Federal Assembly, spoke in favor of exploring the issue of creating a large-scale economic partnership between the countries of the Eurasian Economic Union (EAEU), the Shanghai Cooperation Organization (SCO) and the Association of Southeast Asian Nations (ASEAN).

Meetings of governing bodies

Since the start of the EAEU, three meetings of the Supreme Eurasian Economic Council (SEEC) have taken place.

The first one has passed May 8, 2015 in the Kremlin. At the end of it, the presidents of Russia, Belarus, Kazakhstan and Armenia signed a protocol on amendments to the legal documents of the EAEU in connection with the accession of Kyrgyzstan to the organization. Agreements were also signed on free trade between the EAEU and Vietnam, on the start of negotiations with China on concluding an agreement on trade and economic cooperation, etc. Russian President Vladimir Putin and Chinese President Xi Jinping, following the results of bilateral negotiations on the sidelines of the summit, adopted a joint statement on the integration of The EAEU with the Chinese project “Silk Road Economic Belt”.

October 16, 2015 at a council meeting in the Kazakh village. For the first time, the President of Kyrgyzstan Almazbek Atambayev participated in Burabay as a full member. Following the summit, the leaders of the EAEU countries decided to begin negotiations with Israel on the creation of a free trade zone. In addition, the procedure for admitting new members to the organization, some aspects of Kazakhstan’s accession to the WTO, cooperation with China, etc. were considered. The main directions of the international activities of the union for 2015-2016 were approved.

December 21, 2015 in Moscow, at a meeting of the Eurasian Economic Union, a decision was made to transfer the chairmanship of the organization to Kazakhstan, the personal composition of the board of the Eurasian Economic Commission was determined in connection with the end of the term of office of the ministers of the commission (appointed every four years), a decision was made to conduct population censuses in the countries of the union in 2020 ., as well as the beginning of development" road maps"on cooperation with China. The parties discussed the entry into force of the agreement on a free trade zone between Ukraine and the EU from January 1, 2016 and the risks that may arise in this regard for the economies of the union countries. In particular, the leaders of the EAEU countries agreed on exchange of information about all goods entering the states of the union and the creation of a unified database.

  • Meetings of the Eurasian Intergovernmental Economic Council

The first meeting of the Eurasian Intergovernmental Economic Council took place February 6, 2015 in Gorki, in the residence of the head of the Russian government near Moscow. The meeting of the prime ministers of the four EAEU member states was held with the participation of the head of government of Kyrgyzstan. Issues regarding the development of integration, the functioning of the EAEU, the development of the regulatory framework, as well as the upcoming entry into the union of Kyrgyzstan were discussed. Following the meeting, the heads of government ordered to develop a concept for the creation of a Eurasian engineering center for machine tool manufacturing, to provide funding for a pilot project to introduce uniform labeling of goods on the territory of the EAEU states, etc.

May 29, 2015 in the village A meeting of the Eurasian Intergovernmental Council was held in Burabay, Akmola region of Kazakhstan. Upon its completion, the EAEU and Vietnam entered into a Free Trade Agreement. The document was signed by the prime ministers of the countries of the Union and Vietnam. The agreement established the mutual obligations of the participants to simplify access of goods to the markets of the countries participating in this agreement. Customs duties will be reduced on 88% of mutual trade goods, of which 59% rates will be reduced immediately, and not yet 29% - gradually over 5-10 years. In a separate annex to the Agreement, Russia and Vietnam agreed to simplify market access in the services sector; later, if desired, other EAEU countries can join this annex.

September 8, 2015 In Grodno (Belarus), following the results of the regular meeting of the Eurasian Intergovernmental Council, a number of documents were signed, including the decision “On the Main Directions of Industrial Cooperation within the Framework of the Eurasian Economic Union” and the Agreement on Coordination of Actions of the EAEU States to Protect Rights to Intellectual Property.

April 13, 2016 A regular meeting of the Eurasian Intergovernmental Council was held in Gorki near Moscow. The main strategic issues related to the development of cooperation of the EAEU with the European Union and China, as well as the industrial policy of the Union and the activities of the EEC were discussed.

The Customs Union is an organization that has legal personality obtained under the Treaty on the Economic Union of the Eurasian States. The document was signed on May 29, 2014.

Members of the Customs Union

The creation of the Union is aimed at ensuring the solution of the following issues:

  • To help coordinate, harmonize, and develop a unified policy regarding all sectors of the economy.
  • Ensure free movement of both labor and finance, services, and goods.

Currently, the following states are participants in the Customs Union:

  • Russia,
  • Kyrgyzstan,
  • Kazakhstan,
  • Armenia,
  • Belarus.

Also, Tunisia, Syria and Turkey stated that they intend to join the Customs Union. But so far, these countries have not taken any concrete steps for this.

The evolution of the process will help to better understand the prerequisites and goals of creating a TS.

  1. The first agreement, which became the basis for the creation of the Union, was signed by Belarus, Kazakhstan and Russia in 1995. Later, the agreement was signed by representatives of Uzbekistan, Tajikistan, and Kyrgyzstan.
  2. 2007 Russia, Kazakhstan and Belarus have concluded the following agreement. It said that the listed countries agreed to build a Customs Union with a single customs territory.
  3. year 2009. The previously signed document was supplemented by many additional international treaties, there were more than forty of them. In addition, it was decided that from the first days of 2010 a single customs space will be formed. It will include the territory of Russia, Belarus and Kazakhstan.
  4. 2010 A common code was adopted for the listed states. At the same time, a single tariff comes into effect.
  5. In 2011, the removal of customs controls between the countries of the Union. It was moved to the outer borders.
  6. From 2011 to 2013. Development and adoption of legislative norms common to the CU countries. In addition, a unified law on product safety was developed.
  7. In 2014, the CU was replenished with one more country, Armenia, and next year Kyrgyzstan also becomes a member of the Union.

In other words, integration processes were developed throughout the entire period. As a result, general norms of legislation and customs tariffs should be developed so that it would be possible to carry out trade operations with those states that were not included in the Customs Union.

The main goal pursued by the powers that signed the Treaty on the Eurasian Economic Union is to strengthen economic ties. First of all, strengthening ties was meant between the participating countries, and then with those states that were part of the Soviet Union. And also the task is to restore the once existing technological and economic chains. But this will have to happen taking into account the current economic and political situation of each state.

Who runs the EES?

The following structures coordinate and manage the work of the EAEU bodies:

  • Highest Eurasian EC. This is the name given to a supranational body. It consists of the heads of countries that have become members of the CU. The meeting of the Supreme Council takes place annually. It makes regular decisions that all participating countries must implement. In addition, the council is responsible for determining the composition and powers of various CU structures.
  • Eurasian Commission on Economics. This is the regulatory body of the Union, which works constantly. Except general issues, the commission also decides those related to customs regulation and international trade. It also develops and provides conditions for the development of the vehicle and its normal operation.

The powers of the commission are quite extensive; it is authorized to resolve almost all issues:

  1. Technical regulation.
  2. Customs administration.
  3. Trade statistics.
  4. Procurement
  5. Monetary policy.
  6. Macroeconomic policy.
  7. Concerning transportation, transport.
  8. Subsidies for agricultural or industrial enterprises.
  9. Financial markets.
  10. Migration policy.
  11. Trade regime with third countries.
  12. Competition policies, energy.
  13. Copyright compliance.
  14. Measures regarding sanitary/veterinary standards.
  15. Natural monopoly and other areas.

Governing bodies of the Eurasian Economic Union

In addition, the duties of the commission include ensuring the implementation of international treaties included in the legal framework of the Union.

The Commission is competent to approve documents and make decisions that the countries of the Eurasian Economic Union will be obliged to implement.

CU goals and their implementation

The first goal of the CU concerned issues related to increasing markets where Union members could sell the goods and services they produced. So that, first of all, sales grow within it.

For this purpose the following was proposed:

  1. Cancel internal customs duties. Thanks to this, the price attractiveness of products produced by member countries of the Union could increase.
  2. Cancel customs control and paperwork for the movement of products. This helped speed up the turnover of goods within the Union.
  3. Adopt general requirements for veterinary safety standards and sanitary and epidemiological issues. It was proposed to obtain this based on the results of joint tests.

In order to unify the approach to safety and quality, the participating countries signed an agreement that all products offered for sale must have a certificate. Its form was specified in one of the Customs Union documents.

This agreement contains more than 30 regulations. All of them relate to the quality of services/products and their safety. Moreover, a certificate issued by one member state of the Union remains valid in other member states.

The following TS goals:

  • Create all conditions so that the member countries of the Union can primarily sell their own products.
  • Protect the domestic vehicle market.

Unfortunately, to date, no mutual understanding has been reached between the states on the listed points. Each of them has its own priorities regarding the development of production and intends to primarily protect its own interests, and not take care of the production of its neighbors. Because of this, both importing enterprises and the population suffer.

Advantages of the vehicle

Unfortunately, at the moment it cannot be said that the CU has achieved the goals that were declared during its creation. Such conclusions are led by the fact that there is a decline in trade turnover between the participating countries.

If we compare the period before the agreement on the Eurasian Economic Union was concluded with the period following this event, then no particular economic growth was noticed.

But its decline is not observed either. Moreover, if the Customs Union had not been concluded, the situation would have been much more complicated due to crisis phenomena in all CU countries. Participation in the intra-Union market provides certain advantages.

The shares of customs duties are distributed as follows (indicators in the list are given as a percentage of the total amount):

  1. Russia - 85.3.
  2. Kazakhstan - 7.1.
  3. Belarus - 4.59.
  4. Kyrgyzstan - 1.9.
  5. Armenia - 1.11.

Besides Russia, Kazakhstan and Belarus have the most advantages in customs duties. Thus, thanks to existing agreements, it became possible to sell cars manufactured in the Union without paying duties.

Economy and industry of the countries of the Eurasian Economic Union

In order to carry out industrial assembly, enterprises were built in Belarus with foreign investment, where they then began to assemble passenger cars from imported kits. Previously, it was unprofitable to do this due to the fact that the demand of the country's citizens for cars of this class is low.

The Customs Union is an agreement adopted by the participants of the Eurasian Economic Union, the purpose of which is abolition of customs duties in trade relations. Based on these agreements, common ways of carrying out economic activities and a platform for quality assessments and certification are created.

Thanks to this it is achieved abolition of customs controls at the borders within the Union, general provisions for regulating economic activity for the external borders of the CU are concluded. In view of this, a common customs space is being created, using a generally accepted approach to border control. Another distinctive feature is the equality of rights of citizens of the customs area during employment.

In 2018, the Customs Union consists of next members of the EAEU:

  • Republic of Armenia (since 2015);
  • Republic of Belarus (since 2010);
  • Republic of Kazakhstan (since 2010);
  • Kyrgyz Republic (since 2015);
  • Russian Federation (since 2010).

The desire to become a party to this agreement was voiced by Syria and Tunisia. In addition, we know about the proposal to include Turkey in the CU agreement. However, to date, no specific procedures have been adopted for these states to join the Union.

It is clearly visible that the functioning of the Customs Union serves as a good help for strengthening economic relations between countries located on the territory of the former Soviet countries. We can also say that the approach established in the agreement by the participating countries speaks of restoring lost connections in modern conditions.

Customs duties are distributed through a single sharing mechanism.

Given this information, it can be stated that the Customs Union, as we know it today, serves serious tool for the economic unification of countries that are members of the EAEU.

To understand what the activities of the Customs Union are, it will not be amiss to gain an understanding of how it was formed to its current state.

The emergence of the Customs Union was initially presented as one of the steps in the integration of the CIS countries. This was evidenced in the agreement on the creation of an economic union, signed on September 24, 1993.

Step by step moving towards this goal, in 1995, two states (Russia and Belarus) entered into an agreement between themselves on the approval of the Customs Union. Later, Kazakhstan, Kyrgyzstan, and Uzbekistan also entered this group.

More than 10 years later, in 2007, Belarus, Kazakhstan and Russia signed a pact to unite their territories into a single customs region and approve the Customs Union.

In order to specify the previously concluded agreements, from 2009 to 2010, more than 40 additional agreements were concluded. Russia, Belarus and Kazakhstan have decided that, starting in 2012, a Common Market thanks to the unification of countries into a single economic space.

On July 1, 2010, another important agreement was concluded, which put into motion the work of the Customs Code.

On July 1, 2011, the current customs controls at the borders between countries were canceled and general rules were established at the borders with states that are not in the agreement. Until 2013, uniform legislative norms for the parties to the agreement will be formed.

2014 – The Republic of Armenia joins the Customs Union. 2015 – The Republic of Kyrgyzstan joins the Customs Union.

On January 1, 2018, a new unified Customs Code of the EAEU. It was created to automate and simplify a number of customs processes.

Territory and management

The unification of the borders of the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan became the basis for the emergence of the Common Customs Space. This is how the territory of the Customs Union was formed. In addition, it includes certain territories or objects under the jurisdiction of the parties to the agreement.

The limit of the territory is the border of the Customs Union with third-party states. Moreover, the existence of borders for individual territories located under the jurisdiction of the Union member states is normatively established.

The management and coordination of the Eurasian Economic Union is carried out by two organs:

  1. Interstate Council- the highest body of a supranational nature, consists of heads of state and head of government of the Customs Union.
  2. Customs Union Commission– an agency that deals with issues related to the formation of customs rules and regulates foreign trade policy.

Directions and conditions

When creating the Customs Union, countries declared the main goal socio-economic progress. In the future, this implies an increase in trade turnover and services produced by business entities.

The increase in sales was initially expected directly in the space of the vehicle itself due to following conditions:

  1. The abolition of customs procedures within the Union, which was supposed to make products produced within a single space more attractive, due to.
  2. Increasing trade turnover by eliminating customs controls at internal borders.
  3. Adoption of uniform requirements and integration of safety standards.

Achieving goals and perspectives

Having collected available information about the emergence and activities of the Customs Union, we can come to the conclusion that the results of increasing the turnover of goods and services are published much less frequently than news about the signing of new agreements, i.e. its declarative part.

But, nevertheless, analyzing the stated goals when creating the Customs Union, as well as observing their implementation, one cannot remain silent that simplification of trade turnover has been achieved and competitive conditions have been improved for economic entities of the Customs Union states.

It follows from this that the Customs Union is on the way to achieving its goals, however, in addition to time, this requires the mutual interest of both the states themselves and the economic elements within the Union.

The customs union consists of countries that have the same economic background, but today these states are very different from each other. Of course, even in Soviet times, the republics differed in their specialization, but after gaining independence, many more changes occurred that affected the world market and the division of labor.

However, there are also common interests. For example, many participating countries remain dependent on the Russian sales market. This trend is economic and geopolitical in nature.

Throughout the whole time leading positions in the process of integration and stabilization of the EAEU and the Customs Union played Russian Federation. This was possible due to its stable economic growth until 2014, when prices for raw materials remained high, which helped finance the processes launched by the agreements.

Although such a policy did not predict rapid economic growth, it still assumed the strengthening of Russia's position on the world stage.

The history of relations between the parties to the agreements is similar to a series of compromises that were built on the basis of the role of Russia and the positions of partner countries. For example, there were repeated statements from Belarus about its priorities: a single economic space with equal prices for oil and gas, access to Russian government procurement.

To achieve these goals, the Republic increased tariffs on imported cars in the absence of its own production. Because of such measures it was necessary to install rules for certification of light industry goods, which hurt retail trade.

In addition, the standards adopted at the CU level were unified with the WTO model, despite the fact that Belarus is not a member of this organization, unlike Russia. Enterprises of the Republic have not received access to Russian import substitution programs.

All this served as obstacles for Belarus on the path to achieving its goals in full.

It should not be overlooked that the signed CU agreements contain various exceptions, clarifications, anti-dumping and countervailing measures, which have become an obstacle to the achievement of common benefits and equal conditions for all countries. At various times, virtually every participant in the agreement expressed disagreement with the terms contained in the agreements.

Although customs posts on the borders between the parties to the agreement were eliminated, border zones between countries have been preserved. Sanitary control at internal borders also continued. A lack of trust in interaction practice has been revealed. An example of this is the disagreements that flare up from time to time between Russia and Belarus.

Today it is impossible to say that the goals that were declared in the agreement on the creation of the Customs Union have been achieved. This is evident from the decrease in the turnover of goods within the customs area. There are also no economic development benefits when compared with the time before the agreements were signed.

But there are still signs that in the absence of an agreement the situation would deteriorate more rapidly. The manifestation of the crisis would be broader and deeper. A significant number of enterprises gain relative benefits by participating in trade relations within the Customs Union.

Methods for distributing customs duties among countries also indicate favorable trends for the Republic of Belarus and the Republic of Kazakhstan. Initially, a large share was planned for the budget of the Russian Federation.

The agreements signed by the parties benefited the production of automobiles. Duty-free sales of cars assembled by manufacturers in participating countries have become available. Thus, conditions have been created for the implementation of projects that previously could not succeed.

What is the Customs Union? Details are in the video.

The idea was proposed by the President of the Republic of Kazakhstan Nursultan Nazarbayev. Back in 1994, he put forward an initiative to unite the countries of Eurasia, which would be based on a common economic space and defense policy.

Twenty years later

On May 29, 2014, in Astana, the presidents of Russia, Belarus and Kazakhstan signed an agreement on the Eurasian Economic Union, which came into force on January 1, 2015. The next day - January 2 - Armenia became a member of the union, and on August 12 of the same year, Kyrgyzstan joined the organization.

For twenty years, since Nazarbayev's proposal, there has been forward movement. In 1995, Russia, Kazakhstan and Belarus signed an agreement on the Customs Union, designed to ensure free exchange of goods between states, as well as fair competition among business entities.

Thus, the first stone was laid in the integration of the former republics of the USSR, based on deeper principles than those on which the Commonwealth of Independent States (CIS), created at the time of the collapse of the Soviet Union, was based.

Other states in the region have also shown interest in the Customs Union, in particular, Kyrgyzstan and Tajikistan have joined it. The process smoothly moved to a new stage - in 1999, the countries participating in the Customs Union signed an agreement on the Common Economic Space, and in the following 2000, Russia, Kazakhstan, Belarus, Tajikistan and Kyrgyzstan established the Eurasian Economic Community (EurAsEC).

Things didn't always go smoothly. Disagreements arose between the states, but in the disputes a legal basis for cooperation was born - in 2010, the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan signed 17 basic international treaties, on the basis of which the Customs Union began to operate in a new way. A unified customs tariff was adopted, customs clearance and customs control at internal borders were abolished, and the movement of goods in the territory of the three states became unhindered.

The following year, 2011, countries moved to create a single economic space. In December, a corresponding agreement was signed between Russia, Belarus and Kazakhstan, which came into force on January 1, 2012. According to the agreement, not only goods, but also services, capital, and labor began to move freely on the territory of these countries.

The Eurasian Economic Union (EAEU) became a logical continuation of this process.

Objectives of the Union

The main goals of the creation of the EAEU according to the agreement are stated:

  • creating conditions for the stable development of the economies of states that have joined the organization, in the interests of improving the living standards of their population;
  • the formation within the framework of the union of a single market for goods, services, capital and labor resources;
  • comprehensive modernization, cooperation and increasing the competitiveness of national economies in the context of the process of economic globalization.

Controls

The main body of the EAEU is the Supreme Eurasian Economic Council, which consists of the heads of state of the organization’s members. The tasks of the Council include resolving strategically important issues of the functioning of the union, determining directions of activity, prospects for the development of integration, and making decisions aimed at realizing the goals of the EAEU.

Regular meetings of the Council are held at least once a year, and extraordinary meetings are convened at the initiative of any member state of the organization or the current Chairman of the Council.

Another governing body of the EAEU is the Intergovernmental Council, which includes heads of government. Its meetings are held at least twice a year. The agenda of the meetings is formed by the permanent regulatory body of the Union - the Eurasian Economic Commission, whose powers include:

  • Transfer and distribution of import customs duties;
  • establishment of trade regimes in relation to third countries;
  • statistics of foreign and mutual trade;
  • industrial and agricultural subsidies;
  • energy policy;
  • natural monopolies;
  • mutual trade in services and investments;
  • transport and transportation;
  • monetary policy;
  • protection and protection of the results of intellectual activity and means of individualization of goods, works and services;
  • customs tariff and non-tariff regulation;
  • customs administration;
  • and others, in total about 170 functions of the EAEU.

There is also a permanent Court of the Union, which consists of two judges from each state. The Court considers disputes arising on the implementation of the main treaty and international treaties within the Union and decisions of its governing bodies. Both member states of the Union and individual entrepreneurs operating on their territory can apply to the court.

Membership in the EAEU

The Union is open for any state to join, and not only the Eurasian region. The main thing is to share its goals and principles, as well as to comply with the conditions agreed upon with the members of the EAEU.

At the first stage, it is necessary to obtain the status of a candidate state. To do this, it is necessary to send a corresponding appeal to the Chairman of the Supreme Council. Under his leadership, the council will decide whether or not to grant candidate state status to the applicant. If the decision is positive, a working group will be created; it consists of representatives of the candidate state, current members of the Union, and its governing bodies.

The working group determines the degree of readiness of the candidate state to accept the obligations arising from the fundamental documents of the Union, then the working group develops a plan of activities necessary for joining the organization, determines the scope of the rights and obligations of the candidate state, and then the format of its participation in the work of the bodies of the Union .

Currently, there are a number of potential applicants for candidate status to join the EAEU. Among them are the following states:

  • Tajikistan;
  • Moldova;
  • Uzbekistan;
  • Mongolia;
  • Türkiye;
  • Tunisia;
  • Iran;
  • Syria;
  • Turkmenistan.

According to experts, the most ready countries for cooperation in this format are Tajikistan and Uzbekistan.

Another form of cooperation with the EAEU is the status of an observer state. It is acquired in a similar way to the status of a candidate for membership and gives the right to take part in the work of the Council’s bodies and to get acquainted with accepted documents, with the exception of documents that are confidential.

On May 14, 2018, Moldova received EAEU observer status. In general, according to Russian Foreign Minister Sergei Lavrov, about 50 states are currently interested in cooperation with the Eurasian Economic Union.

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