EU history. Eurasian Economic Union - what is it? EAEU member states. Single regime for investment

Information integration and IT projects

History

* 2019: Pensions for labor migrants

In June 2019, it became known that Russia would start paying pensions to labor migrants from the countries of the Eurasian Economic Union - Armenia, Belarus, Kazakhstan and Kyrgyzstan.

The decision is being prepared as part of an agreement on pension provision within the union.

According to the document, which was prepared in March and must be ratified by the EAEU member countries before the end of 2019, the country in which the migrant worked and made contributions to the pension fund will pay him a pension after returning to his homeland.

The new measures will help restore the influx of labor migrants, which last year collapsed to a minimum in the entire post-Soviet history and no longer covers the natural decline in the population.

2018: China and the EAEU signed an agreement on trade and economic cooperation

An agreement on trade and economic cooperation between the Eurasian Economic Union (EAEU) and China was signed in May 2018 during the Astana Economic Forum, which takes place on Thursday in the capital of Kazakhstan, RIA Novosti correspondent reports.

According to the EEC press service, the EAEU and China have been negotiating an agreement on trade and economic cooperation over the past two years. Agreements have been reached on large-scale and sectoral cooperation. The agreement sets a high standard for regulation in various areas, including the protection and protection of intellectual property rights.

Earlier, the Minister of National Economy of Kazakhstan, Timur Suleimenov, said that "the agreement is non-preferential and does not provide for the abolition of duties or the automatic reduction of non-tariff barriers."

2017: Plan for linking transport routes with the Silk Road Belt

As Adamkul Zhunusov noted in 2017, cooperation between the EAEU countries and the People's Republic of China opens up huge opportunities for the development of economic ties, trade, and the creation of new transport routes between Europe and Asia, which will significantly increase economic potential. A significant synergistic effect is expected from the implementation of a joint project with China to link the EAEU and the Silk Road Economic Belt.

Part of the infrastructure projects will be financed at the expense of the Asian Infrastructure Investment Bank and the Silk Road Fund. As a first step, the Chinese side invited the states along the Silk Road to form a list of pilot projects, taking into account common interests. Such a list of 39 projects has already been prepared by a specially created working group and approved by the ministers of transport of the Union member states, Zhunusov recalled. Among the most significant joint initiatives, he noted the construction of new roads within the framework of the international transport route Europe - Western China with a length of 8,445 km, a high-speed highway Moscow - Kazan with a length of 770 km (within the framework of the Moscow - Beijing high-speed railway), the China - Kyrgyzstan - Uzbekistan railway as a southern branches of the continental bridge of Eurasia, which opens access to the markets of Western Asia and the countries of the Middle East. The EEC Minister made a special emphasis on the implementation of the “Armenia-Iran Southern Railway” project, which connects the existing railway system of Armenia with Iran. For a substantive discussion of these projects, it was decided to invite the Minister of Transport of China Li Xiaopeng to the next Meeting of Ministers of Transport of the Union Member States in December 2017, said Adamkul Zhunusov.

2015: Formation of an alliance

2014: Signing of documents on the creation of the EAEU

On May 29, 2014, in Astana, the presidents of Russia, Belarus and Kazakhstan signed documents on the creation of the Eurasian Economic Union (EAEU) in 2015. The Treaty was concluded with the aim of ensuring economic progress through joint actions aimed at solving the common tasks facing the Member States for sustainable economic development, comprehensive modernization and strengthening the competitiveness of national economies within the global economy.

The management system will be similar to the one that has been in force since 2012 after the transformation of the Customs Union into the Common Economic Space (CES). Members of the Board of the Eurasian Economic Commission (EEC) and its Chairman Viktor Khristenko will retain their positions. The agreement completes the five-year stage in the formation of the union, which began in 2009 with the creation of the Customs Union, Andrey Slepnev, Minister of Trade of the EEC, explains: the union will become an independent subject of international law.

Single market for goods and services

The three countries are agreeing on the creation of a single market for goods and services, although it will not fully operate until 2025 - single markets for gas and oil must be created. The trade policy of the EAEU will not change: uniform customs regulation and tariff, free movement of goods. The norms for the distribution of income from import duties will not change: Russia will receive 87.97%, Kazakhstan 7.33%, Belarus 4.7%.

The agreement spells out the mechanisms for protecting the market from imports. Seasonal duties can be set for up to 6 months, protective, anti-dumping and countervailing measures can be applied.

“In critical circumstances,” the EAEU Commission may impose retroactive anti-dumping duties for 200 days until the completion of the investigation. While the anti-dumping investigation is underway, there is a risk that importers will bring in a year's supply of goods, and this damage must be prevented. This is a WTO-sanctioned instrument,” says Slepnev.

Severstal CEO Alexei Mordashov asked Prime Minister Dmitry Medvedev about the possibility of introducing such duties back in 2013. Without this, protective investigations are meaningless, he explained.

Single regime for investment

It is planned to unify the regime for investments in the countries of the union. Investors will have the right to compensate at the expense of the state the damage to their investments as a result of unrest, wars and revolutions. On the one hand, the nationalization of private assets is prohibited, on the other hand, the investment protection annex describes a compensation mechanism: it must be market-based, paid quickly, and interest may be charged for delay.

Legal basis of the EAEU

Basic provisions. Article 1

... the Eurasian Economic Union (hereinafter referred to as the Union, the EAEU), within which the freedom of movement of goods, services, capital and labor is ensured, the conduct of a coordinated, coordinated or unified policy in the sectors of the economy defined by this Treaty and international treaties within the framework of the Union.
The Union is an international organization for regional economic integration with international legal personality.

Union goals. Article 4

The main goals of the Union are:

creation of conditions for the stable development of the economies of the Member States in the interests of raising the living standards of their population;
striving for the formation of a single market for goods, services, capital and labor resources within the Union;
comprehensive modernization, cooperation and increasing the competitiveness of national economies in the global economy.

Fundamental principles and norms of the functioning of the EAEU. Article 3

respect for the universally recognized principles of international law, including the principles of the sovereign equality of member states and their territorial integrity;
respect for the peculiarities of the political structure of the Member States;
ensuring mutually beneficial cooperation, equality and consideration of the national interests of the Parties;
observance of the principles of market economy and fair competition;
functioning of the customs union without exemptions and restrictions after the end of the transitional periods.

The principle of most favored nation treatment in trade- an economic and legal term meaning the establishment in international treaties and agreements of provisions under which each of the contracting parties undertakes to provide the other party, its individuals and legal entities with no less favorable conditions in the field of economic, trade and other relations, which it provides or will provide in future to any third state, its natural or legal persons.

The above principle is enshrined in the provisions of Article 1 of the General Agreement on Tariffs and Trade of 1947, the founding document of the World Trade Organization, the norms and principles of functioning of which are taken into account when applying the provisions of the Treaty on the EAEU (preamble to the Treaty on the EAEU).

The principle of free movement of capital, goods, services and labor, providing for the possibility of subjects of economic relations to freely carry out their activities within the Common Economic Space, and, therefore, the absence of restrictions at the national level

History of the EAEU

Stage of "institutional integration"

The coming to power in the Russian Federation of Vladimir Putin and a certain stabilization of the socio-economic situation in the key countries of the Eurasian community in the early 2000s allowed the leaders of these countries to embark on more serious approaches to integration. During this period, the most important integration structures were established - the EurAsEC and the CSTO, which, however, have not yet realized their full potential for a long time, which is why it can be called the stage of "institutional integration".

In 2000, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan established the Eurasian Economic Community (EurAsEC) in order to increase the effectiveness of interaction, develop integration processes and deepen cooperation in various fields. Uzbekistan joined the Community in 2006. The priorities of the new international organization were to increase the effectiveness of interaction and the development of integration.

In 2003, the presidents of Belarus, Kazakhstan, Russia and Ukraine, based on the concept of multi-level integration, within the framework of the CIS, signed an Agreement on the formation of a Common Economic Space in order to create conditions for the stable and effective development of the economies of states and improve the standard of living of their population.

In August 2006, at the informal summit of the heads of states - members of the Eurasian Economic Community in Sochi, it was decided to intensify work on the formation of the Customs Union of Belarus, Kazakhstan and Russia with further possible accession of Kyrgyzstan and Tajikistan to it.

Based on the agreements reached at the summit, in October 2007 Belarus, Kazakhstan and Russia signed an agreement on the creation of a single customs territory and the formation of the Customs Union.

Stage of "actual integration"

However, only the onset of the financial and economic crisis that erupted in 2008 around the world stimulated the search for new models for minimizing economic risks and sustainable development and finally led to the activation of regional integration processes.

In June 2009, the supreme body of the Customs Union determined the stages and terms for the formation of a single customs territory of the Customs Union (CU), designating January 1, 2010 as the beginning of the first stage of its formation.

By January 1, 2012, the legal framework of the SES was formed - a market with 170 million consumers, unified legislation, free movement of goods, services, capital and labor. The CES is based on coordinated actions in key areas of economic regulation: macroeconomics, competition, industrial and agricultural subsidies, transport, energy, natural monopoly tariffs. For the population and the business community, the gain from the SES is obvious. Entrepreneurs have equal access to the common market of the three countries, can freely choose where to register their firms and conduct business, sell goods without undue restrictions in any of the CES member states, have access to transport infrastructure, etc. Creation and phased fine-tuning the mechanisms of the single market is an important part of the plans of the member states of the CU and the CES for the transition from a resource-based economy to an innovative one.

On February 2, 2012, the Eurasian Economic Commission (EEC) began its work - for the first time in the twenty-year history of the Eurasian integration process, a permanent supranational regulatory body was created with real powers in a number of key areas of the economy. The EEC provides conditions for the functioning and development of the Customs Union and the Common Economic Space, the development of proposals for the further development of integration.

2013 has become one of the most significant periods in the improvement and development of the Eurasian integration processes. In particular, work continued to ensure the accession of the Kyrgyz Republic to the Eurasian integration project, which was initiated by the decision of the Interstate Council of the EurAsEC, adopted back in 2011.

In May 2013, a Memorandum was signed on deepening cooperation between the Eurasian Economic Commission and the Kyrgyz Republic. The purpose of concluding the Memorandum is to maintain and develop cooperation based on the principles of mutual respect, deepening the interaction of the Kyrgyz Republic with the member states of the CU and the CES in various sectors of the economy.

On September 3, 2013, President of Armenia Serzh Sargsyan announced his country's intention to join the CU and the CES and integrate further, participating in the formation of the Eurasian Economic Union. At the meeting of the Supreme Eurasian Economic Council on October 24, 2013 in Minsk, the Presidents of the participating countries considered the appeal of the Republic of Armenia and instructed the EEC to start work on accession. The EEC Working Group created for this purpose has developed an appropriate "road map".

On December 24, 2013, the "road map" for the accession of the Republic of Armenia to the CU and the CES was approved at a meeting of the Supreme Eurasian Economic Council at the level of heads of state. The heads of states of the “customs troika” and Armenia adopted the Statement “On the participation of the Republic of Armenia in the Eurasian integration process”, which welcomed the intention of the Republic of Armenia to join the CU and the CES and subsequently become a full member of the Eurasian Economic Union.

In 2013–2014, the Eurasian Economic Commission and the authorized bodies of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation, on behalf of the Presidents of their countries, were actively preparing the Treaty on the Eurasian Economic Union (EAEU). With its adoption, the codification of international treaties constituting the regulatory legal framework of the Customs Union and the Common Economic Space was completed.

During this period, 5 rounds of negotiations were held to finalize the draft Treaty, in which more than 700 experts from the Member States and the EEC took part. The final document, numbering more than 1000 pages, consists of 4 parts (include 28 sections, 118 articles) and 33 appendices.

On May 29, 2014 in Astana, during a meeting of the Supreme Eurasian Economic Council, Presidents Alexander Lukashenko, Nursultan Nazarbayev and Vladimir Putin signed the Treaty on the Establishment of the Eurasian Economic Union. Many politicians and experts called this project the most ambitious and at the same time the most realistic, based on calculated economic advantages and mutual benefits. Broad opportunities are opening up for the business community of the participating States: the Treaty gives the green light to the formation of new dynamic markets with uniform standards and requirements for goods, services, capital, and labor.

On October 10, 2014, the Treaty on the accession of the Republic of Armenia to the EAEU was signed in Minsk. The document was adopted at a meeting of the Supreme Eurasian Economic Council, which was attended by the heads of its member states. On the same day, Presidents Alexander Lukashenko, Nursultan Nazarbayev and Vladimir Putin approved the road map for joining the Common Economic Space of the Kyrgyz Republic.

On December 23, 2014 in Moscow, at a meeting of the Supreme Eurasian Economic Council, the President of Kyrgyzstan Almazbek Atambayev signed the Treaty on the accession of the Kyrgyz Republic to the EAEU.

The Eurasian Economic Union began to function on January 1, 2015. The Republic of Belarus became the first chairman of the supreme bodies of the association - the Supreme Eurasian Economic Council at the level of heads of state, the Eurasian Intergovernmental Council at the level of heads of government and the EEC Council at the level of vice-premiers.

Simultaneously, from January 1, 2015, a single service market began to operate in a number of sectors defined by the EAEU states, within which service providers were granted the maximum level of freedom.

The total number of service sectors in the single market is 43. In value terms, this is almost 50% of the total volume of services provided in the Union States. In the future, the Parties will strive to maximize the expansion of these sectors, including through the gradual reduction of exemptions and restrictions, which will strengthen the Eurasian integration project.

On January 2, 2015, after the completion of the ratification procedures, the Republic of Armenia became a full member of the Eurasian Economic Union. In March 2015, the first documents were presented for public discussion, in October 2015 - the last of about forty that the EAEU countries and the Commission had to adopt before the end of the year to start working in the Union of Common Markets for Medicines and Medical Devices.

On May 29, 2015, the EAEU countries and Vietnam signed an agreement on the creation of a free trade zone. The document, which provides for the zeroing of duties on 90% of goods, will more than double the trade turnover of the allied states and Vietnam by 2020. The agreement marked the beginning of the subsequent closer integration with the countries of the Asia-Pacific region.

In May 2015, the Presidents of the countries of the Eurasian Economic Union decided to start negotiations with China to conclude an agreement on trade and economic cooperation. This is not yet a preferential agreement, but an important stage in the development of economic cooperation, streamlining the entire structure of relations and creating a basis for further movement. Including with a view to a possible exit in the future to an agreement on a free trade zone. In order to effectively organize this activity, in October 2015 the Presidents adopted a decree on coordinating the actions of the Union countries on the issues of linking the construction of the EAEU and the Silk Road Economic Belt. The official ones started in early 2016.

On August 12, 2015, after the implementation of the "road map" and the completion of ratification procedures, the Kyrgyz Republic became a full member of the Union.

In October 2015, at the Supreme Eurasian Economic Council, the Presidents of the five Union countries approved the Main Directions for the Economic Development of the EAEU until 2030, an important document that determines further coordination of national policies and ways to increase the competitiveness of the economies of the Union States. The effect of participation in the EAEU by 2030 for member states is estimated at up to 13% of additional GDP growth.

From January 1, 2016, common markets for medicines and medical devices begin to operate in the Eurasian Economic Union. The unified system in this area formed in the EAEU will ensure their safety and quality, create optimal conditions for the development and increase of the competitiveness of the pharmaceutical industry and medical products manufactured in the territory of the Union countries, bringing them to the world market.

During the last four years, and especially actively in 2015 in connection with the acquisition by the Union of international legal personality after the signing of the Treaty on the EAEU, the EAEU member states, together with the EEC, strengthened the influence of the Union on the external circuit. His prestige and importance in the international arena have increased markedly. This is confirmed not only by the expansion of the Eurasian Economic Union through the accession of the Republic of Armenia and the Kyrgyz Republic, but also by the growing interest in close cooperation with the EAEU on the part of many countries of the world: China, Vietnam, Israel, Egypt, India and others. An important element of the EAEU economic cooperation strategy should also be a direct dialogue between the Eurasian and European Commissions. The prerequisites for such a dialogue have been created.

In contrast to the global crisis phenomena, the consistent and successful transformation of the Eurasian space on market economic principles continues with the preservation of political independence and the established cultural identity of sovereign states.

Institutional structure of the EAEU

In 2012-2015, an effective institutional framework for Eurasian economic integration was formed: the Eurasian Economic Commission headquartered in Moscow, the Court of the Eurasian Economic Union, located in Minsk. A decision was made to create a financial regulator by 2025, which will be located in Almaty.

The bodies of the Eurasian Economic Union are:

Supreme Eurasian Economic Council;
Eurasian Intergovernmental Council;
Eurasian Economic Commission;
Court of the Eurasian Economic Union.

Supreme Eurasian Economic Council

The Supreme Eurasian Economic Council (Supreme Council, SEEC) is the supreme body of the Union, consisting of the heads of states - members of the Union. The Supreme Council considers the fundamental issues of the Union's activities, determines the strategy, directions and prospects for the development of integration and makes decisions aimed at realizing the goals of the Union.

Decisions and orders of the Supreme Eurasian Economic Council are adopted by consensus. The decisions of the Supreme Council are subject to execution by the member states in the manner prescribed by their national legislation.

Meetings of the Supreme Council are held at least once a year. To resolve urgent issues of the Union's activities, at the initiative of any of the member states or the Chairman of the Supreme Council, extraordinary meetings of the Supreme Council may be convened.

The meetings of the Supreme Council are held under the leadership of the Chairman of the Supreme Council. Members of the Council of the Commission, the Chairman of the Collegium of the Commission and other invited persons may participate in the meetings of the Supreme Council at the invitation of the Chairman of the Supreme Council.

Eurasian Intergovernmental Council

The Eurasian Intergovernmental Council (Intergovernmental Council) is a body of the union, consisting of the heads of government of the member states. The Intergovernmental Council ensures the implementation and control over the implementation of the Treaty on the Eurasian Economic Union, international treaties within the Union and decisions of the Supreme Council; considers, at the proposal of the Council of the Commission, issues on which no consensus has been reached; gives instructions to the Commission, and also exercises other powers provided for by the Treaty on the EAEU and international treaties within the framework of the union. Decisions and orders of the Eurasian Intergovernmental Council are adopted by consensus and are subject to execution by the member states in the manner prescribed by their national legislation.

Meetings of the Intergovernmental Council are held as needed, but at least 2 times a year. To resolve urgent issues of the Union's activities, on the initiative of any of the member states or the Chairman of the Intergovernmental Council, extraordinary meetings of the Intergovernmental Council may be convened.

Eurasian Economic Commission (EEC)

The Eurasian Economic Commission (EEC) is a permanent supranational regulatory body of the Eurasian Economic Union, which began operating on February 2, 2012 on the basis of Appendix No. 1 to the Treaty on the EAEU and the Regulations on the Eurasian Economic Commission. The main tasks of the EEC are to ensure the conditions for the functioning and development of the union, as well as the development of proposals in the field of economic integration within the union. The EEC carries out its activities on the basis of the principles

ensuring mutual benefit, equality and consideration of the national interests of the Member States;
economic feasibility of decisions made;
openness, publicity, objectivity.

Court of the EAEU

The Court of the Eurasian Economic Union is also a permanent judicial body of the Eurasian Economic Union. It began its work on January 1, 2015 on the basis of the Treaty on the Eurasian Economic Union and the Statute of the Court of the Eurasian Economic Union. The purpose of the Court's activities is to ensure, in accordance with the provisions of the Statute, the uniform application by the Member States and bodies of the Union of the Treaty, international treaties within the Union, international treaties of the Union with a third Party and decisions of the bodies of the Union. The Court is composed of two judges from each Member State, each serving a term of office of nine years. The Chairman of the Court and his Deputy are elected to positions from the composition of the Court by the judges of the Court in accordance with the Rules and approved by the Supreme Eurasian Economic Council. The President of the Court and his Deputy may not be citizens of the same Member State. The status, composition, competence, procedure for the functioning and formation of the Court of the Union are determined by the Statute of the Court of the Eurasian Economic Union in accordance with Appendix No. 2 to the Treaty on the EAEU. The Court considers disputes arising from the implementation of the Treaty, international treaties within the Union and (or) decisions of the Union's bodies, at the request of a Member State or at the request of an economic entity (Appendix No. 2 to the Treaty on the Eurasian Economic Union, Statute of the Court of the Eurasian Economic Union) .

Thus, from the foregoing, it is obvious that the formation of the EAEU was extremely dynamic and took place in a short time. Also, in a fairly short period, the main institutions of the bloc were formed to ensure its functioning. Such development was due to both the internal needs of the Member States and the action of external factors.

Blocks and departments (areas of work) of the EEC

Blocks (areas of work) of the EEC (2016):

Chairman of the Board	Armenia
Member of the Board (Minister) for Competition and Antimonopoly Regulation	Kazakhstan
Member of the Board (Minister) for the main areas of integration and macroeconomics	Russia
Member of the Board (Minister) for Technical Regulation	Belarus
Member of the Board (Minister) for Industry and Agro-Industrial Complex	Belarus
Member of the Board (Minister) for Trade	Russia
Member of the Board (Minister) for Economics and Financial Policy	Kazakhstan
Member of the Board (Minister) for Internal Markets, Informatization, information and communication technologies	Armenia
Member of the Board (Minister) for Customs Cooperation of the EEC	Kyrgyzstan
Member of the Board (Minister) for Energy and Infrastructure of the EEC	Kyrgyzstan

EEC departments (2016):

Department of protocol and organizational support;
Department of Finance;
Legal Department;
Department of Information Technology;
Department for the Functioning of Internal Markets;
Department of Case Management;
Integration Development Department;
Department of Macroeconomic Policy;
Department of Statistics;
Department of Financial Policy;
Business Development Department;
Department of Labor Migration;
Department of Industrial Policy;
Department of Agricultural Policy;
Department of customs-tariff and non-tariff regulation;
Internal Market Protection Department;
Trade Policy Department;
Department of technical regulation and accreditation;
Department of Sanitary, Phytosanitary and Veterinary Measures;
Department of Customs Legislation and Law Enforcement Practice;
Department of Customs Infrastructure;
Department of Transport and Infrastructure;
Department of Energy;
Department of Antimonopoly Regulation;
Department of Competition and Public Procurement Policy.

Leading positions of the EAEU

The EAEU is the largest interstate entity in the world. Its territory occupies 20 million square meters or 15% of the world's land.

The EAEU is the leader in oil (including gas condensate) and natural gas production. In 2013, its share in the world production of these energy carriers was 18.4% and 14.9%, respectively. It ranks 3rd in terms of total energy generated (5.4%) and 4th in terms of total coal production (4.8%).

The Union is the leader in the total production of potash fertilizers, it ranks 5th in steel smelting, and 3rd in iron smelting.

The EAEU also occupies a leading position in the production of agricultural products. So, in 2013, it ranked first in the cultivation of sunflower (for grain) and sugar beet, which represented 24.2% and 17.6% of the global level. In terms of the total number of potatoes grown, it ranked 3rd (11.3% of the world), in terms of grain - 4th (9.7%), 5th in grains and legumes (4.3%) and meat products (cattle and poultry for slaughter) - 3.2%, and in terms of the number of harvested vegetables and melons, it ranks 7th (1.9%). In early 2015, the EAEU ranked third in milk production (7% of world production) .

The proportion of the EAEU population with access to the Internet at the beginning of 2015 was 59.4% of the population, which is 4.4% of the world's Internet users.

Macroeconomic policy of the EAEU

Macroeconomic sustainability and convergence

Ensuring macroeconomic sustainability is based on the main macroeconomic indicators that determine the sustainability of economic development, established by Article 63 of the Treaty:

the annual deficit of the consolidated budget of the general government sector - does not exceed 3 percent of the gross domestic product;
debt of the general government sector - does not exceed 50 percent of gross domestic product;
the inflation rate (consumer price index) in annual terms (December to December of the previous year, in percent) - does not exceed by more than 5 percentage points the inflation rate in the Member State in which this indicator has the lowest value.

In view of the slowdown in the growth of economic activity and trade, the decline in commodity prices on a global scale, as well as sanctions and counter-sanctions between the Russian Federation, the United States, the EU and some other states, the economy of the EAEU as a whole experienced an economic downturn in 2014-2016 . In turn, this led to a deterioration in the indicators of economic stability of the EAEU member states and the excess of the threshold value for one or another indicator by all member states during this period. Accordingly, from 2014 to 2016, the Commission held consultations with all EAEU member states on the situation with the excess of one or another indicator of economic sustainability, and also developed recommendations in 2016 for the Kyrgyz Republic (on debt), for the Republic of Armenia (budget deficit), for the Republic of Kazakhstan and the Republic of Belarus (inflation).

Report: Long-term forecast for the economic development of the Eurasian Economic Union until 2030

From a long-term development perspective, the report identified three possible scenarios:

1) Inertial (Extended status quo)

2) Fragmentary (Transit-raw material bridge)

3) Maximum (Own center of force)

Potential integration effects include:

Growth of mutual trade
Growth in non-oil and gas exports and reduction in the share of imports from third countries
Growth of foreign direct investment

The potential effect of integration on the level of economic development of the Union, defined as the difference between the scenarios with the current and maximum level of integration (“Extended status quo” and “Own center of power”), is estimated at US$ 210 billion at current prices, or within US$140 billion at 2012 purchasing power parity. The effect of participation in the Union by 2030 for member states is estimated at up to 13 percent of the additional growth in gross domestic product.

The greatest development potential within the Union has:

In the field of goods - the production of pharmaceutical products and goods of the chemical industry.
In the service sector, travel (covering goods and services purchased in a country during a visit by non-residents of that country for their own consumption or subsequent transfer to a third party) and transport services.

Indicators of integration and economic development of the EAEU

Direct investment in US dollars increased in all EAEU member states in 2012-2015. except for the Republic of Kazakhstan in 2015. At the same time, direct investment from other member states increased despite the 2015 recession in the EAEU, as well as despite the reduction in foreign direct investment in general (with the exception of the Kyrgyz Republic).

Despite the reduction in nominal volumes in 2014-2016 (which is largely due to the decline in global commodity prices), it is necessary to note the increase in the share of mutual trade in the total volume of foreign trade in 2015-2016. This suggests that the internal trade within the Union during the crisis turned out to be more stable than the trade of the Union with third countries. The accession to the EAEU of the Armenian Republic and the Kyrgyz Republic also had a positive effect.

After the formation of the Customs Union in 2010, the economic growth rates of this union as a whole were quite good. They significantly exceeded the growth rate of the developed economies of the world. In 2011-2012 the integration effect even allowed the Customs Union to slightly outperform the world average in terms of economic growth. However, the fall in commodity prices, the slowdown in the growth of international trade and the sanctions imposed between the Russian Federation and some Western countries led to a recession in the EAEU, which replaced the Customs Union. Today, the EAEU is faced with the task of returning to positive economic growth rates.

Economic activity within the CU and the EAEU has had a positive impact on all members of these economic associations. Gross domestic product per capita at purchasing power parity (in US dollars) in 2015 compared to 2010 increased in all Member States from 15 to 27 percent.

The current account balance of the balance of payments as a percentage of GDP also improved, but this improvement reflects the reduction in capital account financing and exchange rate adjustments resulting from the crisis and cannot be a positive indicator of development at this stage. On the other hand, the weakening of the national currencies of the EAEU in 2014-2016. can help boost exports.

Forms of international cooperation of the EAEU

Full Membership

The full member states of the EAEU are: the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation.

Observer state status

Any state has the right to apply to the chairman of the SEEC with a request to grant him the status of an observer state at the EAEU. And then the Supreme Council, taking into account the interests of developing integration and achieving the goals of the Treaty on the EAEU, decides whether to grant such a status or to refuse to grant it. The status of an observer enables authorized representatives of an observer state to attend, upon invitation, meetings of the Union's bodies, to receive documents adopted by the Union's bodies that are not documents of a confidential nature. At the same time, this status does not give the right to participate in decision-making in the bodies of the Union. At the same time, the observer state is obliged to refrain from any actions that could damage the interests of the Union and the Member States, the object and goals of the Treaty on the EAEU.

Memorandum of Cooperation and Understanding

The purpose of the Memorandum is to create a platform for the comprehensive development of trade and economic cooperation, to identify and eliminate barriers to trade. Within the framework of the Memorandum, bilateral consultations are held with the involvement of experts, which can be actively used by the EAEU member states and partner states. The first Memorandum was signed with Mongolia in 2015. At this stage, such a concept of cooperation has been implemented with Chile, Peru, Singapore and Cambodia. The plans include Mexico, Cuba, APEC, the Andean Community of Nations, the African Union, the East African Community, Brazil, Moroka, Jordan, Thailand, Bangladesh.

Two types of trade agreements: free trade area (FTA) and trade and economic cooperation

The free trade zone agreement with Vietnam came into force in October 2016. The lecturer noted that at the moment it is too early to talk about the results of such interaction, but in a year it is planned to observe positive trends. Joint study groups (between the EAEU and the respective country) investigating the feasibility of starting FTA negotiations are working with South Korea and Egypt. Negotiations on the establishment of an FTA are underway with Singapore, India and Serbia.

Another form of trade agreement (trade and economic cooperation) in the form of a "non-preferential trade agreement" is being worked out with China.

Status of implementation of EAEU trade agreements with third countries (March 2017):

The country	Establishment of a joint research group	Start of negotiations	FTA Agreement
Vietnam	Decision of the CCC 2009	Decision of the SEEC dated December 19, 2012	Decision of the SEEC dated May 8, 2015
Singapore	Joint Statement dated October 26, 2016

India	Council decision of March 28, 2014	Decision of the EEC Council dated November 30, 2016
South Korea	Council Decision of October 18, 2015
Egypt	Council Decision of August 15, 2015
PRC	The decision of the SEEC on the start of negotiations on the conclusion of an agreement on trade and economic cooperation dated May 8, 2015
Serbia	The decision of the SEEC on the start of negotiations dated May 31, 2016

Results of 2016 and plans for the future:

Dmitry Yezhov summed up his speech with the results of 2016, which was defined by the President of Kazakhstan N.A. Nazarbayev as “the year of deepening the international cooperation of the EAEU”:

international cooperation of the EAEU was successfully developed in such areas as Southeast Asia, Latin America and Africa;
Imports from the Asia-Pacific Economic Community (APEC) surpassed imports from the European Union (EU) for the first time.

Literature:

Treaty on the Eurasian Economic Union. Astana, May 29, 2014
Kofner Yu. Eurasian Economic Union in the global economy and prospects for its development. Moscow, 2016
Official website of the Eurasian Economic Commission [Electronic resource] // http://www.eurasiancommission.org/ Date of access: 24.04.2017.
History, logic, results and prospects for the development of the EAEU. Report of the EEC lecture at the Higher School of Economics [Electronic resource] // http://website/archives/2273
Macroeconomic policy of the EAEU. Report of the EEC lecture at the Higher School of Economics [Electronic resource] // http://website/archives/2524
Cooperation of the EAEU with third countries and international organizations.

The Eurasian Economic Union (EAEU) is an international integration economic association (union), the agreement on the establishment of which was signed on May 29, 2014 and comes into force on January 1, 2015. The union included Russia, Kazakhstan and Belarus. The EAEU was created on the basis of the Customs Union of the Eurasian Economic Community (EurAsEC) to strengthen the economies of the participating countries and "rapprochement with each other", to modernize and increase the competitiveness of the participating countries in the world market. The EAEU member states plan to continue economic integration in the coming years.

The history of the creation of the Eurasian Economic Union

In 1995, the presidents of Belarus, Kazakhstan, Russia and later the acceding states - Kyrgyzstan and Tajikistan signed the first agreements on the creation of the Customs Union. Based on these agreements, the Eurasian Economic Community (EurAsEC) was created in 2000.

On October 6, 2007 in Dushanbe (Tajikistan) Belarus, Kazakhstan and Russia signed an agreement on the creation of a single customs territory and the Customs Union Commission as a single permanent governing body of the Customs Union.

The Eurasian Customs Union or the Customs Union of Belarus, Kazakhstan and Russia was born on January 1, 2010. The customs union was launched as a first step towards the formation of a broader European Union type of economic union of the former Soviet republics.

The establishment of the Eurasian Customs Union was guaranteed by 3 different treaties signed in 1995, 1999 and 2007. The first treaty in 1995 guaranteed its creation, the second in 1999 guaranteed its formation, and the third in 2007 announced the creation of a single customs territory and the formation of a customs union.

The access of products to the territory of the Customs Union was granted after checking these products for compliance with the requirements of the technical regulations of the Customs Union, which are applicable to these products. As of December 2012, 31 Technical Regulations of the Customs Union have been developed, which cover various types of products, some of which have already entered into force, and some will enter into force before 2015. Some technical regulations are yet to be developed.

Before the Technical Regulations entered into force, the following rules were the basis for access to the market of the member countries of the Customs Union:

1. National certificate - for product access to the market of the country where this certificate was issued.

2. Certificate of the Customs Union - a certificate issued in accordance with the "List of products subject to mandatory assessment (confirmation) of conformity within the framework of the Customs Union", - such a certificate is valid in all three member countries of the Customs Union.

Since November 19, 2011, the member states have implemented the work of the joint commission (Eurasian Economic Commission) to strengthen closer economic ties to create the Eurasian Economic Union by 2015.

On January 1, 2012, the three states formed the Common Economic Space to promote further economic integration. All three countries have ratified the basic package of 17 agreements governing the launch of the Common Economic Space (CES).

May 29, 2014 in Astana (Kazakhstan) signed an agreement on the establishment of the Eurasian Economic Union.

On January 1, 2015, the EAEU began to function as part of Russia, Belarus and Kazakhstan. On January 2, 2015, Armenia became a member of the EAEU. Kyrgyzstan announced its intention to participate in the EAEU.

Economy of the Eurasian Economic Union

The macroeconomic effect of the integration of Russia, Belarus and Kazakhstan into the EAEU is created by:

Reducing the prices of goods, due to a decrease in the cost of transporting raw materials or exporting finished products.

Stimulation of "healthy" competition in the common market of the EAEU due to an equal level of economic development.

Increasing competition in the common market of the Customs Union member countries due to the entry of new countries into the market.

An increase in average wages due to cost reduction and increased labor productivity.

Increasing production due to increased demand for goods.

Increasing the well-being of the peoples of the EAEU countries, due to lower food prices and an increase in employment.

Increasing the payback of new technologies and products due to the increased market size.

At the same time, the signed version of the agreement on the creation of the EAEU was of a compromise nature, and therefore a number of planned measures were not implemented in full. In particular, the Eurasian Economic Commission (EEC) and the Eurasian Economic Court have not received broad powers to control compliance with the agreements. If the EEC resolutions are not implemented, the disputed issue is considered by the Eurasian Economic Court, whose decisions are only advisory in nature, and the issue is finally resolved at the level of the Council of Heads of State. In addition, topical issues on the creation of a single financial regulator, on the policy in the field of energy trade, as well as on the problem of the existence of exemptions and restrictions in trade between the EAEU participants were postponed until 2025 or indefinitely.

Characteristics of the EAEU countries (as of 2014)

Country	Population, million people	Size of real GDP, billion US dollars	Size of GDP per capita, thousand US dollars	Inflation, %	Unemployment rate, %	Trade balance, USD billion
Russia	142.5	2057.0	14.4	7.8	5.2	189.8
Belarus	9.6	77.2	8.0	18.3	0.7	-2.6
Kazakhstan	17.9	225.6	12.6	6.6	5.0	36.7

Source - CIA World Factbook

Governing bodies of the Eurasian Economic Union

The governing bodies of the EAEU are the Supreme Eurasian Economic Council and the Eurasian Economic Commission.

The Supreme Eurasian Economic Council is the supreme supranational body of the EAEU. The council includes heads of state and government. The Supreme Council meets at the level of heads of state at least once a year, at the level of heads of government - at least twice a year. Decisions are made by consensus. The adopted decisions become binding for implementation in all participating States. The Council determines the composition and powers of other regulatory structures.

The Eurasian Economic Commission (EEC) is one permanent regulatory body (supranational governing body) in the EAEU. The main task of the EEC is to provide conditions for the development and functioning of the EAEU, as well as the development of initiatives for economic integration within the EAEU.

The powers of the Eurasian Economic Commission are defined in Article 3 of the Treaty on the Eurasian Economic Commission dated November 18, 2010. All rights and functions of the previously existing Commission of the Customs Union have been delegated to the Eurasian Economic Commission.

Within the competence of the Commission:

customs tariffs and non-tariff regulation;
customs administration;
technical regulation;
sanitary, veterinary and phytosanitary measures;
enrollment and distribution of import customs duties;
establishment of trade regimes with third countries;
statistics of foreign and domestic trade;
macroeconomic policy;
competition policy;
industrial and agricultural subsidies;
energy policy;
natural monopolies;
state and municipal purchases;
domestic service trade and investment;
transport and transportation;
monetary policy;
intellectual property and copyright;
migration policy;
financial markets (banking, insurance, currency and stock markets);
and some other areas.

The Commission ensures the implementation of international treaties that form the legal basis of the Eurasian Economic Union.

The Commission is also the depository of international treaties that formed the legal basis of the CU and CES, and now the EAEU, as well as decisions of the Supreme Eurasian Economic Council.

Within its competence, the Commission adopts non-binding documents, such as recommendations, and can also make decisions that are binding in the EAEU member countries.

The budget of the Commission is made up of the contributions of the Member States and is approved by the Heads of the EAEU Member States.

Possible new members of the Eurasian Economic Union

The main contenders for joining the EAEU are Armenia and Kyrgyzstan. In July 2014, news broke that Armenia would sign an agreement on joining the Eurasian Economic Union before September 10, 2014. There is information that negotiations between Armenia and the founding countries of the EAEU and the Eurasian Economic Commission have been completed. The agreement on the accession of Armenia to the EAEU is in the governments of Russia, Kazakhstan and Belarus, where it is undergoing the necessary bureaucratic stages, and after the decision of the governments, the question of the place where the presidents of Armenia and the EAEU countries will meet to sign the agreement will be raised.

It is also reported that Kyrgyzstan may soon join the EAEU member countries. However, no specific deadlines have been set for this country's accession to the EAEU so far (previously, the date was announced - until the end of 2014). In addition, the population of the country, apparently, is not particularly eager to join the EAEU. This conclusion can be drawn based on civic activity in collecting signatures for a petition in support of Kyrgyzstan's accession to the Customs Union and the EAEU. To date, only 38 people have signed the appeal.

Russians are also suspicious of Kyrgyzstan's possible accession to the Eurasian Economic Union. This is evidenced by the results of a survey conducted by the All-Russian Public Opinion Research Center (VTsIOM). According to researchers, only 20% of those polled were in favor of joining the union of Kyrgyzstan, the same number of votes for Moldova. The most desirable country that the Russians would like to see as allies turned out to be Armenia. 45% of respondents voted for it.

Azerbaijan and Moldova are waiting for every fifth person in the EAEU (23% and 20% respectively). Only 17% of survey participants are in favor of joining the EAEU of Uzbekistan, while Tajikistan and Georgia - 14% each. Respondents spoke least of all in favor of attracting Ukraine to the Eurasian Economic Union - 10%. And 13% of respondents believe that the EAEU should not be expanded yet.

Poll of public opinion in the CIS regarding integration

Since 2012, the Eurasian Development Bank (established in Russia and Kazakhstan) has been conducting a regular survey of the opinions of residents of individual states regarding Eurasian integration projects. The following question was asked to residents of individual countries: “Belarus, Kazakhstan and Russia united in the Customs Union, which freed trade between the three countries from duties, and created the Common Economic Space (in fact, the single market of the three countries). How do you feel about this decision?

The results of the answers "profitable" and "very profitable" are given below:

As you can see, the idea of creating the Customs Union and the Eurasian Economic Union as a whole is approved and looks “beneficial” in the eyes of the majority of the population of almost everyone, with the exception of Azerbaijan, the CIS countries and even Georgia.

Meanwhile, the United States in its foreign policy opposes the Customs Union and the EAEU, arguing that this is an attempt to restore Russian dominance in the post-Soviet space and create a union like the USSR.

Page content

On January 1, the Treaty on the Eurasian Economic Union (EAEU) came into force. The Treaty approves the creation of an economic union, within which the freedom of movement of goods, services, capital and labor is ensured, the conduct of a coordinated, agreed or unified policy in the sectors of the economy defined by this document and international treaties within the framework of the Union.

The Treaty on the EAEU was signed by the Presidents of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation on May 29, 2014 in Astana. In addition to these three states, the members of the Union will also be the Republic of Armenia, which signed the Treaty of Accession to the Union on October 10, 2014, and the Kyrgyz Republic, which signed a similar Treaty on December 23, 2014.

The Eurasian Economic Union is an international organization for regional economic integration with international legal personality.

The Union is called upon to create conditions for the stable development of the economies of the member states in order to improve the living standards of their population, as well as for the comprehensive modernization, cooperation and competitiveness of national economies in the global economy.

The EAEU carries out its activities within the competence granted to it by the Member States in accordance with the Treaty on the Union, based on respect for the universally recognized principles of international law, including the principles of the sovereign equality of the Member States and their territorial integrity; on the basis of respect for the peculiarities of the political structure of the Member States; on the basis of ensuring mutually beneficial cooperation, equality and taking into account the national interests of the parties; on the basis of observance of the principles of market economy and fair competition.

The main body of the Union is the Supreme Eurasian Economic Council (SEEC), which includes the heads of member states. SEEC meetings are held at least once a year. The structure of the EAEU bodies is also formed by the Intergovernmental Council at the level of heads of government, the Eurasian Economic Commission and the Court of the Union.

Reference:

Bodies of the Union:

The Supreme Council is the supreme body of the EAEU, which includes the Presidents of the Union Member States.

The Intergovernmental Council is a body of the Union, which includes the Prime Ministers of the Member States, which considers strategically important issues of the development of Eurasian economic integration.

The Court of the EAEU is the judicial body of the Union, which ensures the application by the Member States and bodies of the Union of the Treaty on the EAEU and other international treaties within the Union.

The Eurasian Economic Commission is a permanent supranational regulatory body of the Union, which is formed by the Council of the Commission and the Collegium of the Commission. The main tasks of the Commission are to ensure the conditions for the functioning and development of the Union, as well as the development of proposals in the field of economic integration within the framework of the EAEU.

The Council of the Commission includes the Deputy Prime Ministers of the Member States of the Union.

The composition of the EEC Board is formed by the Chairman and Ministers of the Commission.

The main functional novelties of the Treaty on the EAEU in comparison with the stages of the CU and the CES:

The Treaty on the EAEU consolidated the agreement of the member states on the implementation of a coordinated energy policy and the formation on the basis of common principles of common energy markets (electricity, the market for gas, oil and oil products). The document assumes that this task will be implemented in several stages and finally completed by 2025: the formation of a common electricity market is expected to be completed by 2019, and a common hydrocarbon market - by 2025.

The Treaty on the EAEU defines the regime for regulating the circulation of medicines and medical devices - within the Union, by January 1, 2016, a common market for medicines and a common market for medical devices (medical products and medical equipment) will be created.

The Treaty defines the main priorities of transport policy in the territory of the Eurasian Economic Union for the long term. The parties agreed on a step-by-step liberalization of transportation on the territory of the Union being created, which primarily concerns road and rail transport.

An agreement was reached on the formation and implementation of a coordinated agro-industrial policy. It is important that the implementation of policy in other areas of integration interaction, including in the field of ensuring sanitary, phytosanitary and veterinary and sanitary measures in relation to agricultural products, will be carried out taking into account the goals, objectives and directions of the agreed agro-industrial policy.

The effective functioning of the Eurasian Economic Union cannot be imagined without a coordinated macroeconomic policy, which provides for the development and implementation of joint actions of the member states of the Union in order to achieve a balanced development of the economy. According to the Treaty, the main directions for conducting a coordinated macroeconomic policy are the formation of common principles for the functioning of the economy of the Member States of the Union, ensuring their effective interaction, as well as the development of general principles and guidelines for predicting the socio-economic development of the Parties.

To ensure the coordinated regulation of financial markets, following the results of step-by-step harmonization of legislation, the EAEU member states agreed on the need to reach the establishment of a single supranational body for financial market regulation by 2025.

The Treaty on the EAEU assumes that from January 1, 2015, a single market for services will begin to operate in a number of sectors determined by the member states of the Union. At the same time, the national regime is laid down as a base, i.e. the state is obliged to accept full national treatment in relation to the service provider and partner countries; there can be no restrictions. In the future, the Parties will strive to maximize the expansion of these sectors, including through the gradual reduction of exemptions and restrictions, which will certainly strengthen the Eurasian integration project.

According to the Treaty on the EAEU, a single market for services within the Union operates in the service sectors approved by the Supreme Eurasian Economic Council at the level of heads of state based on the agreed proposals of the Member States and the Commission. On the basis of the Treaty, the decision of the Supreme Eurasian Economic Council on December 23, 2014 approved the lists of service sectors in which the single market will start functioning from January 1, 2015. Currently, according to the proposals of Belarus, Kazakhstan and Russia, more than 40 service sectors can be included in the list of services (construction services, services in the field of wholesale / retail trade, services related to agriculture, including sowing, processing, harvesting of crops, etc.) . The list of sectors in which the rules of the single market for services must be ensured is subject to a gradual and coordinated expansion. In service sectors where there is no single market for services, providers and recipients of services are granted national and most favored nation treatment, and quantitative and investment restrictions are not applied.

From January 1, 2015, a common labor market will start functioning in the territories of Belarus, Kazakhstan and Russia; will be implementedfreedom of movement of labor. Citizens of these states will work under the same conditions:workers of the EAEU member states will not need to obtain work permits within the Union.With the creation of a common labor market, citizens of the EAEU countries can directly feel the benefits of the Eurasian Economic Union. Mutual recognition of diplomas will be carried out from January 1, 2015 automatically. The tax on income of individuals-citizens of the EAEU member states will be paid at the internal resident rate from the first days of employment. Citizens of the EAEU countries will stopfill out migration cards when crossing the internal borders of the EAEU countries,if the period of their stay does not exceed 30 days from the date of entry. In addition, workers and members of their families are exempted from the obligation to register (registration) with the internal affairs bodies for a period of stay of up to 30 days.

Another major novelty of the Treaty on the EAEU: the possibility of applying the national regime for citizens of all four countries in terms of social security, including medical care. In each country within the EAEU, all medical services guaranteed by the state will be equally available to all citizens of the Union countries. (We are talking primarily aboutfree provision of emergency medical services).

As for pensions, the Treaty on the EAEU contains an obligation to resolve the issue of exporting pensions and offsetting the length of service accumulated in another member state of the Union. Currently, the EEC, together with the Parties, is working on the Pension Agreement, which will enter into force after 2015.

The Eurasian Economic Union is an international organization of regional economic integration with international legal personality and established by the Treaty on the Eurasian Economic Union. The EAEU ensures the freedom of movement of goods, services, capital and labor, as well as the conduct of a coordinated, coordinated or unified policy in the 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 the 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 order to improve the living standards of the population of the member states.

Customs Union of the EAEU

The Customs Union of the EAEU is a form of trade and economic integration of the participating 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, the member countries of the Customs Union apply uniform customs tariffs and other regulatory measures when trading with third countries.

The unified 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 in respect of which the Member States of the Customs Union have exclusive jurisdiction.

Member countries of the Customs Union:

Kazakhstan - since July 1, 2010
Russia - since 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 consider 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 be significantly expanded in the near future.

Technical regulation in the EAEU Customs Union

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

The mechanisms incorporated 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 facilitated 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 treaties have been adopted to date, designed to simplify the movement of goods on the territory of the member states:

Agreement on the implementation of a coordinated policy in the field of technical regulation, sanitary, veterinary and phytosanitary measures;
Agreement on unified principles and rules of technical regulation;
Agreement on the basics of harmonization of technical regulations;
Agreement on the use of the Unified Mark of Products Circulation on the Market of the EAEU Member States;
Agreement on the creation of an information system of the 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 work on conformity assessment.

You can get detailed information about technical regulation in the Customs Union of the EAEU from a specially prepared 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 created a huge unified customs territory, within which goods are moved without the cost of crossing customs borders.

Although the Customs Union was legally created in 2010, it actually began to work only on July 1, 2011, when the 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 work. At the moment, five states are members of the Customs Union - Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan. Several more countries are official candidates for membership in the organization or are considering this step.

Russia

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

Kazakhstan

For Kazakhstan, participation in the Customs Union is first of all good because it made it possible to enter the union, which gives a total of up to 16% of world grain exports. Working in the same field, Kazakhstan and Russia got 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 partly integrated with Russia into a single customs and economic field, participation in the Customs Union allowed expanding the geography of preferential supplies of its products to several more countries, and also increased the inflow of investments, in particular, from Kazakhstan. According to experts' forecasts, participation in the CU 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 whose aggregate volume greatly exceeds their economic capacity, so they predict an acceleration in GDP growth and the general welfare of the population.

On the whole, the Customs Union is viewed as a mutually beneficial economic partnership of geographically and mentally close countries that have equal rights and opportunities within the association. Given the prospects for new members to join, 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 purpose of which is the economic and political rapprochement of the post-Soviet countries (at the same time, this association can potentially attract many other Eurasian countries outside the former USSR). To date Eurasian integration implemented in the form of a number of unions at various levels, the most important of which are the Customs Union of the EAEU and the Eurasian Economic Union.

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

At the EAEU level, a common market of 183 million people was formed. The allied 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, on the territory of Eurasia in the regions of present-day Central and Central Asia, Southern Siberia, the Black Sea region, the Caucasus and the South of European Russia, there were large state formations of a number of peoples. It is in this Eurasian area, according to the most common hypotheses, that the historical ancestral homelands of the Indo-Europeans are located (Slavs, Armenians, Ossetians, Tajiks, etc. belong to the Indo-European peoples), Turks (Kazakhs, Kirghiz, Tatars, Uzbeks, etc.) and Finno-Ugric peoples ( Karelians, Mordvins, Udmurts, Mari, Komi, etc.). Scythians, Sarmatians, Huns, Turks, Khazars, Mongols created their state-empires in the space of Eurasia.

Since the 16th century, Russia has become the largest state in the Eurasian space (in the 20th century, the Soviet Union). With the advent of Russia to Eurasia, it became possible to unite this most important geopolitical region on the basis of agriculture and industrial production, while the Eurasian traditions of cattle breeding and nomadic economy 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 not yet emerged. It is quite characteristic that Kazakhstan and some other Asian republics of the USSR resisted the collapse of the Soviet Union to the greatest extent.

The initiator of the Eurasian reintegration can rightfully be considered the President of Kazakhstan, Nursultan Nazarbayev, who presented in March 1994 a draft 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-fledged integration had to be postponed. However, the unification process has begun. 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] Timeline of integration

October 10, 2000- in Astana (Kazakhstan), the heads of state (Belarus, Kazakhstan, Russia, Tajikistan, Kyrgyzstan) signed the Treaty on the Establishment of 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. The EurAsEC has become the first effective organization to ensure the integration process in the Eurasian space.

May 30, 2001- came into force an agreement on the creation EurAsEC as part of Kazakhstan, Russia, Belarus, Kyrgyzstan and Tajikistan. In 2006-2008 Uzbekistan also participated in the EurAsEC, since 2002 Ukraine and Moldova have received observer status, and since 2003 - Armenia.

February 23, 2003- The presidents of Russia, Kazakhstan, Belarus and Ukraine announced their intention to form the 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 Commission of the Customs Union- a single permanent regulatory body of the EurAsEC Customs Union (in 2012, powers were transferred to the Eurasian Commission).

July 6, 2010- entered into force agreements on Customs Union (CU) as part of Russia, Kazakhstan and Belarus, earned Uniform Customs Code.

December 9, 2010- Russia, Kazakhstan and Belarus signed all 17 documents on the creation Common Economic Space (CES)(agreements on uniform competition rules, on the regulation of agricultural support 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 public procurement, on the status of migrants and counteracting illegal migration from third countries , on a coordinated macroeconomic and monetary policy, on the free movement of capital, on the regulation of natural monopolies and access to their services, on the creation of a single market for oil and oil products).

July 1, 2011- earned Single customs territory Customs Union: on the borders of Russia, Kazakhstan and Belarus, customs control was canceled (it was transferred 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, the Treaty on CIS free trade zone. The FTA of the CIS provides for "minimization of exceptions from the nomenclature of goods to which import duties are applied", export duties should be fixed at a certain level, and subsequently phased out.

November 18, 2011- an agreement was signed on the establishment of the Eurasian Economic Commission.

January 1, 2012- as a result of the entry into force of the relevant treaty, a Common Economic Space (SES) as a common market, Russia, Belarus and Kazakhstan (since 2014 - CES of the Eurasian Economic Union), has earned Eurasian Commission. The task of the CES is to ensure the "four freedoms" - the movement of goods, capital, services and labor - as well as to ensure the beginning of the coordination of the economic policies of the member states in relation to macroeconomics, finance, transport and energy, trade, industry and agriculture.

September 20, 2012- an agreement entered into force FTA CIS between Belarus, Russia and Ukraine - the first three countries to ratify it. In 2012-2013 the agreement was also ratified by Kazakhstan, Armenia, Kyrgyzstan and Moldova, in a special order Uzbekistan joined the FTA, and Tajikistan, although it signed the agreement, did not ratify it.

May 29, 2014- Russia, Belarus and Kazakhstan signed agreement on the establishment 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. The accession of Armenia to the EAEU has been approved.

January 1, 2015- the agreement on the EAEU came into force, thus Eurasian Economic Union established.

May 8, 2015- Presidents of Russia, Belarus, Kazakhstan and Armenia signed documents on the accession of Kyrgyzstan 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 between the EAEU and Vietnam was signed.

May 27, 2015- Egypt has applied for a free trade zone with the EAEU.

August 12, 2015- The Eurasian Union has canceled the customs border with Kyrgyzstan.

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[edit] Eurasian Economic Union

On May 29, 2014, in Astana, the presidents of Russia, Belarus and Kazakhstan signed an agreement on the establishment of the Eurasian Economic Union (EAEU), which will enter 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 intensifying compared to integration at the level of the Customs Union. The Allied States undertake to guarantee the free movement of goods and services, capital and labor, as well as to implement a coordinated policy in key sectors of the economy: energy, industry, agriculture, and 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 at the Eurasian Economic Union (since April 14, 2017)

Other potential participants

Tajikistan- In 2012, he announced his intention to join the CU 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 the mouth of 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. The key points of the CES agreements have been in operation since July 2012. The customs union is part of the CES agreements.

The CES is designed to ensure the freedom of movement of goods, capital, services and labor between member states. Also, the goal is 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 CES 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 CES.

[edit] Customs union

Customs Union of the EAEU(until 2014 - the Customs Union of the Eurasian Economic Community, the CU of the EurAsEC) is one of the forms of economic integration in the post-Soviet space. In the people and the media, this organization is simply referred to as "TS". It is the term "Customs Union" in 2010-2014. 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 on all participating States.

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

[edit] Composition

Currently, the Customs Union includes the following states:

[edit] TC Candidates

Tajikistan- In 2012, he announced his intention to join the CU 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 CU and the EAEU in 2016.
Moldova- April 14, 2017 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, while the parliament is against it, the further fate of 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 noted that the Gagauz autonomy is not an independent country either de jure or de facto. It is an autonomous republic within Moldova.

Syria- also announced its desire to join the Customs Union back in 2010. At present, the signing of an agreement on a free trade zone between Syria and the Customs Union is being prepared.

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

Abkhazia- February 16, 2010 informally announced its desire to enter the Customs Union.

South Ossetia- October 15, 2013 announced its intention to join the Customs Union.

Donetsk People's Republic

Luhansk People's Republic- in 2014 announced its intention to join the Customs Union.

Pridnestrovian Moldavian Republic- February 16, 2012 announced its intention to join the Customs Union.

Former potential candidates

Ukraine- according to its long tradition, the Ukrainian leadership tried to sit on two chairs at the same time, drawing 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. At present, the issue of joining the Customs Union has been stalled due to the 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 ruining and in many ways has already ruined the remnants of 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 Commonwealth Free Trade Area (CIS FTA) between Belarus, Russia and Ukraine, which ratified the agreement, was launched. In 2012-2013 Kazakhstan, Armenia, Kyrgyzstan and Moldova also ratified the agreement, Uzbekistan joined the FTA in a special order, and Tajikistan signed the agreement, but has not yet ratified it.

The free trade area provides for "minimizing exceptions to the range of goods subject to import duties," and export duties must first be fixed and then phased out.

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

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In 2014, it was planned to sign a similar free trade zone agreement with New Zealand (now questionable due to New Zealand's participation in anti-Russian sanctions). Negotiations are also underway to conclude such agreements 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, about 50 countries expressed their desire to cooperate with the EAEU as of the beginning of 2017.

[edit] Signatories of the FTA

Vietnam- the agreement was signed on May 29, 2015. Entered 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 President of Belarus Alexander Lukashenko, on June 2 - by President of Kyrgyzstan Almazbek Atambayev.

[edit] FTA under negotiation

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 started in 2015.
Mongolia- will begin the stage of negotiations on a free trade area and possible accession from autumn 2016.
Serbia- is negotiating the creation of an FTA with the EAEU

[edit] Expressed interest in cooperation

[edit] What gives accession to the EAEU

The EAEU is designed to improve economic interaction and significantly simplify the life of citizens of the Eurasian countries in a number of ways:

Customs control procedures will be relaxed or removed.
Economic, transport, energy and migration policies will be coordinated.
Legislation regarding business and trade will be partially unified.
On June 19, 2015, it was announced that international roaming would be canceled on the territory of the EAEU.

[edit] Western reaction

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 US will try to prevent the re-creation of the Soviet Union."

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

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

Putin, meanwhile, does not miss an opportunity to poke fun at the Europeans who are now suffering from separatist sentiments, hinting at an invitation to the Customs Union of certain European countries. Nazarbayev admits Turkey's involvement in the Eurasian integration.

Customs Union countries: list

In the modern world, many countries unite in alliances - political, economic, religious and others. One of the largest such unions was the Soviet one. Now we are seeing the emergence of the European, Eurasian and 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 no duties, etc., but also a number of points regulating trade with third countries. This agreement was signed on 06.10.2007 in Dushanbe, at the time of its conclusion, the union included the Russian Federation, Kazakhstan and Belarus.

The first article of the agreement on the movement of goods within this territory says the following:

Customs duty is not charged. And not only for goods of own production, but also for cargo from third countries.
There are no economic restrictions, except for compensatory, 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, which were its founders or joined later, and those that only expressed a desire to join.

Membership candidates:

TC leaders

There was a special commission of the Customs Union, 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 this legal framework until July 1, 2012, that is, until the creation of the EEC. The supreme 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)).

At the level of heads of government, prime ministers were represented:

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

Purpose of the Customs Union

The countries of the Customs Union, under the main goal of creating a single regulatory body, meant the formation of a common territory, which will include several states, and all duties on products are canceled on their territory.

The second goal was to protect our own interests and markets, primarily from harmful, low-quality, as well as competitive products, which makes it possible to smooth out all the shortcomings in the trade and economic sphere. This is very important, since the protection of the interests of their 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 benefit is obvious for those enterprises that can easily carry out purchases in neighboring countries. Most likely, it will be only large corporations and companies. As for the prospects for the future, contrary to some forecasts of economists that the Customs Union would lead to a decrease in wages in the participating countries, at the official level, the Prime Minister of Kazakhstan announced an increase in wages in the state in 2015.

That is why the world experience of such large economic formations cannot be attributed to this case. The countries that have joined the Customs Union are expecting a steady, if not rapid, growth of economic ties.

Treaty

The final version of the Agreement on the Customs Code of the Customs Union was adopted only at the tenth meeting, 26.10.2009. This pact spoke about the creation of special groups that would monitor the activities for the implementation of the revised draft treaty.

The countries of the Customs Union had until 01.07.2010 to amend their legislation to eliminate contradictions between this Code and the Constitution. Thus, another contact group was created to resolve issues related to differences between national legal systems.

Also, all the nuances related to the territories of the Customs Union have been finalized.

Territory of the Customs Union

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

The Eurasian Economic Union includes the 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 should be constantly carried out, a transition to a single customs tariff should be carried out.

The total budget of this union is formed exclusively in Russian rubles, thanks to 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 regulation 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.

Union bodies

The supreme regulatory body is considered to be the Supreme Council, which includes the heads of the member states.

A judiciary has also been created, which is responsible for the application of treaties within the Union.

The Eurasian Economic Commission (EEC) is a regulatory body that ensures 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 member states of the Union) and the Chairman.

The main provisions of the Treaty on the EAEU

Of course, compared to the CU, the EAEU has not only broader powers, but also a much more extensive and specific list of planned activities. 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 has been created that will not only monitor the implementation, but also control its entire course.

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 given to transport policy on the territory of the EAEU states, without which it will not be possible to create any 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 into reality all the planned plans and agreements. Under such conditions, general principles of interaction are developed and the effective development of countries is ensured.