Eurasian Economic Union. Integration in the CIS space. EEU - what is it? EAEU member countries

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

The member states of the Eurasian Economic Union are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and 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 the interests of improving the living standards of the population of the member states.

Customs Union of the EAEU

The EAEU Customs Union 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, member countries of the Customs Union apply uniform customs tariffs and other regulatory measures when trading with third countries.

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

Member countries of the Customs Union:

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

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

Technical regulation in the EAEU Customs Union

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

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

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

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

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

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

Member States of the Customs Union

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

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

Russia

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

Kazakhstan

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

Belarus

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

Armenia and Kyrgyzstan

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

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

Eurasian Union

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

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

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

[edit] History of Eurasian integration

In ancient times, on the territory of Eurasia in the areas of what is now 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 (the Indo-European peoples include the Slavs, Armenians, Ossetians, Tajiks, etc.), Turks (Kazakhs, Kyrgyz, Tatars, Uzbeks, etc.) and Finno-Ugric peoples ( Karelians, Mordvins, Udmurts, Mari, Komi, etc.). In the space of Eurasia, the Scythians, Sarmatians, Huns, Turks, Khazars, and Mongols created their own empire states.

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

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

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

[edit] Chronology of integration

• October 10, 2000- in Astana (Kazakhstan), the heads of state (Belarus, Kazakhstan, Russia, Tajikistan, Kyrgyzstan) signed the Treaty establishing the Eurasian Economic Community (EurAsEC). The Treaty lays down the concept of close and effective trade and economic cooperation to achieve the goals and objectives defined by the Treaty on the Customs Union and the Common Economic Space. EurAsEC became the first effective organization ensuring the integration process in the Eurasian space.

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

• February 23, 2003- the presidents of Russia, Kazakhstan, Belarus and Ukraine announced their intention to form a Common Economic Space (CES).

• October 6, 2007- the EurAsEC summit was held in Dushanbe (Tajikistan), at which the concept of the Customs Union of Russia, Kazakhstan and Belarus was adopted. Created Customs Union Commission- a single permanent regulatory body of the EurAsEC Customs Union (in 2012, powers were transferred to the Eurasian Commission).

• July 6, 2010- agreements on Customs Union (CU) as part of Russia, Kazakhstan and Belarus, earned Unified Customs Code.

• December 9, 2010- Russia, Kazakhstan and Belarus signed all 17 documents on the creation Common Economic Space (SES)(agreements on common rules of competition, on the regulation of support for agriculture and industrial subsidies, on the regulation of railway transport, services and investments, on the protection of intellectual property, on the rules of technical regulation, on government procurement, on the status of migrants and combating illegal migration from third countries , on coordinated macroeconomic and monetary policies, 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 petroleum products).

• July 1, 2011- earned Single customs territory Customs Union: customs control has been abolished on the borders of Russia, Kazakhstan and Belarus (it has been moved to the outer contour of the borders of the Customs Union).

• October 18, 2011- in St. Petersburg, following a meeting of the Council of Heads of Government of the Commonwealth countries, an Agreement on CIS free trade zone. The CIS FTA provides for “minimizing exceptions from the range of goods to which import duties apply”; export duties must be fixed at a certain level, and subsequently phased out.

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

• January 1, 2012- as a result of the entry into force of the relevant agreement, a Common Economic Space (SES) as a common market of Russia, Belarus and Kazakhstan (since 2014 - SES of the Eurasian Economic Union), earned Eurasian Commission. The purpose of the SES is to ensure the “four freedoms” - the movement of goods, capital, services and labor - as well as ensuring the beginnings of coordination of the economic policies of the participating states in relation to macroeconomics, finance, transport and energy, trade, industry and agriculture.

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

• May 29, 2014- Russia, Belarus and Kazakhstan signed agreement on the 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. Armenia's accession to the EAEU was approved.

• January 1, 2015- the agreement on the EAEU came into force, thus The Eurasian Economic Union was created.

• May 8, 2015- Presidents of Russia, Belarus, Kazakhstan and Armenia signed documents on Kyrgyzstan's accession to the Treaty on the EAEU.

• May 14, 2015- Iran plans to join the free trade zone with the EAEU

• May 25, 2015 - an agreement on a free trade zone was signed between the EAEU and Vietnam.

• May 27, 2015- Egypt has submitted an application to create a free trade zone with the EAEU.

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

[edit] Eurasian Economic Union

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

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

[edit] Composition of the EAEU

• Armenia(since October 10, 2014)
• Belarus(since May 29, 2014)
• Kazakhstan(since May 29, 2014)
• Kyrgyzstan(since December 23, 2014)
• Russia(since May 29, 2014)

• Moldova- has the status of an observer state in the Eurasian Economic Union (since April 14, 2017)

Other potential participants

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

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

[edit] Integration levels

[edit] Common Economic Space

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

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

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

[edit] Customs Union

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

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

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

[edit] Vehicle composition

Currently, the Customs Union includes the following states:

[edit] Candidates for membership in the CU

• Tajikistan- in 2012 announced his intention to join the Customs Union and the EAEU after Kyrgyzstan. The entry of Kyrgyzstan was delayed, but it took place. Negotiations with Tajikistan are also dragging on.
• Mongolia- announced its intention to join the Customs Union and the EAEU in 2016.
• Moldova- On April 14, 2017, it received the status of an observer state at the Eurasian Economic Union. Since, as of 2017, in Moldova the president is in favor of Eurasian integration, and the parliament is against it, 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 taken into account that Gagauz autonomy is not an independent country either de jure or de facto. This is an autonomous republic within Moldova.

• Syria- also announced its desire to join the Customs Union back in 2010. Currently, preparations are being made for the signing of an agreement on a free trade zone between Syria and the Customs Union.

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

• Abkhazia- On February 16, 2010, she informally announced her desire to join the Customs Union.

• South Ossetia- On October 15, 2013, she announced her intention to join the Customs Union.

• Donetsk People's Republic

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

• Pridnestrovian Moldavian Republic- On February 16, 2012, she announced her intention to join the Customs Union.

Former potential candidates

• Ukraine- according to its long-standing tradition, the Ukrainian leadership tried to sit on two chairs at the same time, moving closer to both the European Union and the Customs Union, but the CU member states made it clear that such a development of events is unacceptable. Currently, the issue of joining the Customs Union has 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 destroying and in many ways has already destroyed the remnants of the high-tech industry in Ukraine (Ukrainian exporters lost 29% of exports to Russia in 2014, missing $3.9 billion, while exports to the EU grew by only $1 billion (mainly in agriculture ).

[edit] Free trade zone

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

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

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

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

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

[edit] Countries that have signed the FTA

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

[edit] FTA at the negotiation stage

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

[edit] Expressed interest in cooperation

[edit] What does joining the EAEU give?

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

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

[edit] Reaction of Western countries

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

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

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

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

Countries of the Customs Union: list

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

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

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

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

Current countries and candidates

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

Candidates for membership:

TS managers

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

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

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

Purpose of the Customs Union

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

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

Benefits and prospects

First of all, the benefits are obvious for those enterprises that can easily purchase from neighboring countries. Most likely, these will only be large corporations and companies. As for future prospects, contrary to some economists’ forecasts that the Customs Union will entail a decrease in wages in 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 entities cannot be attributed to this case. Countries that have joined the Customs Union can expect, if not rapid, but stable growth in economic ties.

Agreement

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

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

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

Territory of the Customs Union

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

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

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

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

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

Bodies of the Union

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

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

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

Main provisions of the Treaty on the EAEU

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

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

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

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

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

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

Expert opinions

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

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

List of member countries of the Customs Union in 2017

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

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

Members

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

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

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

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

Customs duties are distributed through a single sharing mechanism.

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

Stages of formation

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

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

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

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

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

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

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

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

Territory and management

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

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

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

Directions and conditions

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

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

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

Achieving goals and perspectives

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

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

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

Activity analysis

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

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

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

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

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

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

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

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

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

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

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

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

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

Copyright 2017 - KnowBusiness.Ru Portal for entrepreneurs

Copying of materials is permitted only when using an active link to this site.

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

Members of the Customs Union

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

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

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

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

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

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

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

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

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

Who runs the EES?

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

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

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

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

Governing bodies of the Eurasian Economic Union

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

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

CU goals and their implementation

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

For this purpose the following was proposed:

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

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

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

The following TS goals:

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

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

Advantages of the vehicle

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

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

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

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

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

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

Economy and industry of the countries of the Eurasian Economic Union

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

Among the largest modern international associations is the Eurasian. It was formally established in 2014, but by the time the agreement on its creation was signed, the EAEU member states already had significant experience of interaction in the mode of active economic integration. What are the specifics of the EAEU? What is this - an economic or political association?

General information about the organization

Let's begin our exploration of the question posed by reviewing the key facts about the organization in question. What are the most noteworthy facts about the EAEU? What kind of structure is this?

The Eurasian Economic Union, or EAEU, is an association within the framework of international economic cooperation of several states of the Eurasian region - Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia. Other countries are expected to join this association, since the Eurasian Economic Union (EAEU) is an open structure. The main thing is that candidates for joining the association share the goals of this organization and show a willingness to fulfill the obligations stipulated by the relevant agreements. The creation of the structure was preceded by the establishment of the Eurasian Economic Community, as well as the Customs Union (which continues to function as one of the structures of the EAEU).

How did the idea of ​​forming the EAEU come about?

As a number of sources testify, the state that was the first to initiate the processes of economic integration in the post-Soviet space, which grew into the establishment of the EAEU, is Kazakhstan. Nursultan Nazarbayev expressed a corresponding idea at a speech at Moscow State University in 1994. Subsequently, the concept was supported by other former Soviet republics - Russia, Belarus, Armenia and Kyrgyzstan.

The main advantage of a state being part of the Eurasian Economic Union is the freedom of economic activity of entities registered in it on the territory of all member countries of the union. It is expected that a single trade space will soon be formed on the basis of the EAEU institutions, characterized by common standards and norms for doing business.

Is there room for political interaction?

So, what is the EAEU, a purely economic structure, or an association that may be characterized by a political component of integration? At the moment and in the near future, as various sources testify, it would be more correct to talk about the first interpretation of the essence of the unification. That is, the political aspect is excluded. Countries will integrate in pursuit of economic interests.

There is evidence of initiatives regarding the creation of certain supranational parliamentary structures within the EAEU. But the Republic of Belarus and Kazakhstan, as evidenced by a number of sources, do not consider the possibility of their participation in building the respective countries. They want to maintain full sovereignty, agreeing only to economic integration.

At the same time, it is obvious to many experts and ordinary people how close the political relations of the countries that are members of the EAEU are. The composition of this structure is formed by the closest allies who have no publicly expressed fundamental differences regarding the difficult situation on the world stage. This allows some analysts to conclude that economic integration within the framework of the association under consideration would be very difficult if there were significant political differences between the countries participating in the association.

History of the EAEU

Studying some facts from the history of the association will help us better understand the specifics of the EAEU (what kind of organization it is). In 1995, the heads of several states - Belarus, the Russian Federation, Kazakhstan, and a little later - Kyrgyzstan and Tajikistan, formalized agreements establishing the Customs Union. On their basis, the Eurasian Economic Community, or EurAsEC, was established in 2000. In 2010, a new association appeared - the Customs Union. In 2012, the Common Economic Space opened - first with the participation of the states that are members of the Customs Union, then Armenia and Kyrgyzstan joined the structure.

In 2014, Russia, Kazakhstan, and Belarus signed an agreement on the creation of the EAEU. Later Armenia and Kyrgyzstan joined it. The provisions of the relevant document came into force in 2015. The EAEU Customs Union continues to function, as we noted above. It includes the same countries as the EAEU.

Progressive development

Thus, the member states of the EAEU - the Republic of Belarus, Kazakhstan, Russia, Armenia, Kyrgyzstan - began to interact long before the corresponding association was established in its modern form. According to a number of analysts, the Eurasian Economic Union is an example of an international organization with a progressive, systematic development of integration processes, which can determine the significant stability of the corresponding structure.

Stages of development of the EAEU

Several stages of development of the Eurasian Economic Union have been identified. The first is the establishment of a free trade zone, the development of norms according to which trade between the EAEU member countries can be carried out without duties. At the same time, each state retains independence in terms of conducting trade with third countries.

The next stage in the development of the EAEU is the formation of the Customs Union, which involves the formation of an economic space within which the movement of goods will be carried out unhindered. At the same time, foreign trade rules that are common to all member countries of the association should also be determined.

The most important stage in the development of the union is the formation of a single market. It is expected that it will be created within the framework of which it will be possible to freely exchange not only goods, but also services, capital and personnel - between the member states of the association.

The next stage is the formation of an economic union, the participants of which will be able to coordinate the priorities of implementing economic policy among themselves.

After the listed tasks are solved, it remains to achieve complete economic integration of the states included in the association. This involves the creation of a supranational structure that will determine priorities in building economic and social policies in all countries included in the union.

Advantages of the EAEU

Let’s take a closer look at the key benefits that EAEU members receive. We noted above that among the key ones is the freedom of economic activity of economic entities that are registered in any state of the union throughout the entire territory of the EAEU. But this is far from the only advantage of the state joining the organization we are studying.

EAEU members will have the opportunity to:

Take advantage of low prices for many goods, as well as reduced costs associated with the transportation of goods;

Develop markets more dynamically by increasing competition;

Increase labor productivity;

Increase the volume of the economy due to increased demand for manufactured goods;

Provide employment for citizens.

GDP growth prospects

Even for such economically powerful players as Russia, the EAEU is the most important factor in economic growth. Russia's GDP, according to some economists, may, thanks to the country's entry into the association under consideration, receive a very powerful growth stimulus. Other EAEU member countries—Armenia, Kazakhstan, Kyrgyzstan, and Belarus—can achieve impressive indicators of GDP growth.

Social aspect of integration

In addition to the positive economic effect, the EAEU member countries are expected to integrate in the social aspect as well. International business activities, as many experts believe, will contribute to the establishment of partnerships and stimulate strengthening the friendship of nations. Integration processes are facilitated by the common Soviet past of the peoples living in the countries of the Eurasian Economic Union. The cultural and, what is very important, linguistic proximity of the EAEU states is obvious. The composition of the organization is formed by countries in which the Russian language is familiar to the majority of the population. Thus, many factors can contribute to the successful solution of the tasks facing the heads of state of the Eurasian Economic Union.

Supranational structures

The Treaty on the EAEU has been signed, it’s up to its implementation. Among the most important tasks within the framework of the development of the Eurasian Economic Union is the creation of a number of supranational institutions, whose activities will be aimed at promoting economic integration processes. According to a number of public sources, the formation of some basic institutions of the EAEU is expected. What structures could these be?

First of all, these are various commissions:

Economics;

For raw materials (she will set prices, as well as quotas for goods and fuel, coordinate policies in the field of precious metals circulation);

For interstate financial and industrial associations and enterprises;

By entering the monetary unit for calculations;

On environmental issues.

It is also planned to create a special Fund, the competence of which will include cooperation in a variety of areas: in the economy, in the field of development of science and technology. It is expected that this organization will deal with issues of financing various studies and help participants in cooperation in resolving a wide range of issues - legal, financial or, for example, environmental.

Other important supranational structures of the EAEU that are planned to be created are the International Investment Bank, as well as the arbitration of the Eurasian Economic Union.

Among the successfully created associations that are part of the governance structure of the EAEU - Let us study the features of its activities in more detail.

Eurasian Economic Commission

It can be noted that the EEC was created in 2011, that is, even before the agreement on the creation of the EAEU was signed. It was founded by Russia, Kazakhstan and Belarus. Initially, this organization was created to manage processes at the level of such a structure as the Customs Union. The EAEU is a structure in the development of which the Commission is called upon to directly participate now.

The EEC has established a council and a board. The first structure should include deputy heads of government of the member states of the association. The board should consist of three people from the EAEU member countries. The Commission provides for the creation of separate departments.

The Eurasian Economic Commission is the most important, but not the most important supranational governing body of the EAEU. It is subordinate to the Supreme Eurasian Economic Council. Let's look at the key facts about him.

This structure, like the Eurasian Economic Commission, was created several years before the states signed the agreement on the creation of the EAEU. Thus, for a long time it was considered a supranational body within the structure of the Customs Union, as well as the Common Economic Space. The Council is formed by the heads of the EAEU member states. It should meet at the highest level at least once a year. The heads of government of the member countries of the association must meet at least 2 times a year. A peculiarity of the functioning of the Council is that decisions are made in a consensus format. The approved provisions are mandatory for implementation in the EAEU member countries.

Prospects for the EAEU

How do analysts assess the prospects for the development of the EAEU? We noted above that some experts believe that simultaneously with economic integration, political rapprochement of the member states of the association is inevitable. There are experts who share this point of view. There are experts who completely disagree with her. The main argument of those analysts who see prospects for the politicization of the EAEU is that Russia, as the leading economic player in the association, will in one way or another influence the decisions made by the authorities of the EAEU member states. Opponents of this point of view believe that, on the contrary, it is not in the interests of the Russian Federation to show excessive interest in the politicization of the corresponding international association.

Provided that a balance is maintained between the economic and political components in the EAEU, the prospects for the union, based on a number of objective indicators, are assessed by many analysts as very positive. Thus, the total GDP of the member states of the structure under consideration will be comparable to the indicators of the leading economies of the world. Taking into account the scientific and resource potential of the EAEU, the volume of economic systems of the member countries of the union can grow significantly in the future.

Global collaboration

According to a number of analysts, the prospects for cooperation with the EAEU are attractive for countries that seem to be far from the economic space formed by the countries that signed the EAEU treaty - Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia. For example, Vietnam recently signed a free trade agreement with the EAEU.

Syria and Egypt are showing interest in cooperation. This gives analysts reason to say that the Eurasian Economic Union can become a powerful player in the world market.

Today, questions about the EAEU, what it is, what power it can contain, are gradually finding their answers. It is obvious that such seemingly stable international organizations as NATO and the European Union, a united Western world, leads to the logical tightening of a similar policy of power in the East. And Russia seeks to become the center of such forces by creating the EAEU, a union designed to generate not only economic growth, but also political weight.

Inactive CIS

EAEU - what is it? Formally, this is a young international association, personifying the Eastern opposition to Western monoliths. At the same time, the Eurasian Union is by no means a new idea; it was created on the basis of already existing organizations that had shown themselves to be ineffective. In principle, the first alliance in this territory can be considered the well-known CIS - the Commonwealth of Independent States, which for the most part was an inactive alliance with very little substance.

The second organization in this space was the Eurasian Economic Community. The idea of ​​its creation was submitted by the President of Kazakhstan Nursultan Nazarbayev in 1994. For five years, the partners have been looking for optimal solutions for implementing a new partnership. And in 2000, Russia, Kazakhstan, Belarus, Tajikistan and Kyrgyzstan signed a corresponding agreement, according to which the partnership came into force in 2001.

Customs Union

One of the main issues of the EurAsEC was the discussion of the creation of a single customs space. As a result, at the beginning of 2010, the Customs Union began to operate within the EurAsEC. The Union was created with the aim of strengthening trade integration, creating duty-free trade zones where the exchange of goods would not be accompanied by any economic restrictions. The union included all the states of the EAEU, the formation of which has also been actively discussed since then.

The implementation of the unified customs code, which was adopted and ratified by all participating states, was not cloudless. The conflict flared up between the Kremlin and Minsk, so much so that Vladimir Putin threatened the Belarusian leader that the union would begin without him. As a result, in April 2011, transport control on the Russian-Belarusian border was abolished. With the preservation of border and migration from these countries, it assumes zero and no excise tax payments. When importing, VAT and excise taxes are received by the tax authorities of the Russian Federation.

The second step is towards a unified space

At the end of 2011, the participating countries created. Among the main tasks of the commission was, among other things, further strengthening economic ties as a springboard on which the creation of the EAEU was to unfold.

At the beginning of 2012, it was formed that strengthened the mutual integration of the countries. The start of work was marked by 17 agreements ratified by all members of the created space.

This was the last organizational stage, which resulted in the agreement on the creation of the EAEU signed on May 29 last year in the business center of Kazakhstan, Astana. On January 1 of this year, the union came into force with the participation of Russia, Kazakhstan and Belarus, and Armenia ratified the agreement a day later. And only four months later Kyrgyzstan joined.

Armenian share

For quite a long time, Armenia delayed joining the Russian alliances in the Asian theater. And although the country joined the newborn association on January 2 of this year, until then, for several years it had been extracting additional preferences for itself during any talk about joining the same Customs Union and earlier organizations. As a result of delaying tactics, Armenia extracted a 1.13% share of customs duties on goods imported into the territory of the union. It is worth noting that the country does not have direct borders with any of the members of the Customs Union. In addition, Armenia will switch to single purchases of goods (mostly agricultural products) only by 2022. Separate tariffs will be in effect for milk, eggs and honey until 2020, and for fruits and nuts - until 2019.

Similar concessions are provided for other types of food products. Until 2018, zero customs duties on gasoline will be applied; a common tariff with the EAEU will be introduced only in 2020. In the same way, it is planned to regulate duties on pharmaceuticals, organic and inorganic products, fertilizers, household chemicals and some others.

Benefits for the new participant mainly fell on the largest player in the union - Russia and, according to some economists, by the end of this year it could cost $5.2 billion. It is worth adding that shortly before Armenia’s official entry into the EAEU, the European Union allocated 77.5 million euros.

Arrived at the regiment

The last member to join the union today is Kyrgyzstan; the EAEU will finally accept the new player on May 29, according to the signed documents. The newly elected President of Kazakhstan, Nursultan Nazarbayev, announced his accession on May 8 this year. In his speech, he noted that all doubts that had arisen earlier had been removed.

Moreover, at the same time, the Kazakh leader announced the intention, which the EAEU countries had expressed not so long ago, to conclude an agreement on a free trade zone with Vietnam. Türkiye, Azerbaijan, India and Mongolia also showed interest in this agreement.

Economic Development Strategy

Although there was a long road to the creation of the EAEU, what it is from an economic point of view is still not very clear. Several integration positive aspects for national economies were declared at once. In particular, the final cost of goods should be reduced due to significantly reduced costs for transporting goods within countries, as well as for selling them abroad. The economic development of the participating countries must be at the same level, which will ensure “healthy” competition. Meanwhile, how countries would reach the same level was not explained. In addition, it is expected that cost reductions resulting from the removal of trade restrictions will increase labor productivity and, as a result, increase wages.

The expanding territory of the EAEU and economic growth will lead to an increase in demand, adherents of the union believe, which, in turn, will stimulate and contribute to increasing production volumes of all types of goods. And, thus, the welfare of the peoples included in the union should only grow every year.

Compromise approaches

Despite the declared objectives, the union nevertheless began its existence with lightweight obligations. Thus, a significantly smaller range of powers was left to the Eurasian Economic Commission and the court, which were supposed to monitor and regulate compliance with the agreements. If the EEC resolutions are not complied with, the dispute goes to the judicial level. However, decisions made by the court are advisory in nature, and of course decisions on controversial issues are made at the level of the Council of State Leaders. Moreover, decisions on the creation of a financial regulator of the EAEU, as well as a unified authority for managing energy trade, have been postponed until 2025, or even indefinitely.

Control authorities

Within the EAEU, following the example of the European Union, the corresponding management bodies were created: the Supreme Eurasian Economic Council and the Eurasian Economic Commission. The first governing body includes the leaders of the participating countries and the chairmen of the governments of these states. Leaders within the union meet at least once annually, heads of government usually meet twice a year. Decisions are made on a democratic basis and are binding on all members of the union. The powers of the SEEC also include determining the composition and competence of other bodies of the union.

The EEC is a permanent body of the union. Its powers are defined in the charter of the EAEU and imply ensuring conditions for the successful integration of countries into common economic realities. Also, the competence of the previously existing CU Commission was transferred to the EEC. Among them are the definition of macroeconomic, energy, currency, and migration policies; solving issues of tariff regulation and natural monopolies, subsidies and foreign trade and many others. The EEC budget is formed from contributions from union members.

Western reaction

The organization of a strong eastern alliance, of course, does not smile at all on Western countries. Both the European powers and the United States express their fears and disagreement with any attempts at integration in the post-Soviet space, and even more so in the previous composition. The question “EAEU - what is it, first of all, from a political point of view” was asked at first by almost all antagonistic political scientists.

The most categorical dissatisfaction came from the United States, which, after the creation of the Customs Union and on the eve of the agreements on the EAEU, clearly identified this as Russia’s attempt to occupy a dominant position in the post-Soviet space. Meanwhile, according to the American political scientist, Russia can become a powerful power and form an eastern polis only if it unites with Ukraine.

Prospects for the single currency

It was created relatively recently, but the most pressing issues remain monetary and financial integration, which involves, in particular, the creation of a single currency that will strengthen the single market between all participating countries. Already in March of this year, Vladimir Putin instructed the Central Bank and the lower house of parliament to find a solution to these issues together with the central banks of all member countries of the union by September 1 of this year.

Among the names of the new monetary unit, “Altyn” (a term of Turkic origin, dating back to the time of the Golden Horde) and “Evraz”, which overlaps with the euro, are being discussed. Experts, commenting on the idea of ​​a single currency, note that full integration without it is impossible. Previously, the idea of ​​​​creating a single Eurasian Central Bank following the example of Kazakhstan, Russia and Belarus was also expressed. The documents signed on this issue included 2025. At the same time, the worsening geopolitical situation is likely pushing, in particular, Vladimir Putin to accelerated measures, analysts believe.

Political ambitions

As soon as we started talking about monetary integration within the EAEU, international experts began to evaluate the union even more clearly from the point of view of a purely political plane. Experts argue that accelerating this process with complete distrust in any of the currencies of the participating countries is an extremely risky operation, and the prospects of the EAEU raise big questions in this regard. Understanding this, of course, will convince partners to meet Moscow halfway, but will also allow them to negotiate a lot of concessions for themselves. All countries, analysts say, are ready to work together only if they can get something in return. These preferences will be covered by the Russian budget. And since the extreme interest in the union is obvious on the Russian side, it may have the weakest position.

06.11.2018

Customs Union (CU)- interstate agreement within the framework of the Eurasian Economic Union (EAEU). The CU involves the abolition of customs duties and similar payments in mutual trade between member countries of the union. In addition, the Customs Union unifies quality assessment and certification methods and creates a unified database on certain aspects of economic activity.

The conclusion of the Union is the basis for the creation of a single customs space on the territory of its members and the transfer of customs barriers to the external borders of the Union. Based on this, all countries in the customs area apply a single, coordinated approach to customs procedures and goods imported and exported across the borders of the Customs Union.

Also, throughout the territory of the Customs Union, equal rights for citizens of participating countries in employment are assumed.

The participants of the Customs Union currently (2016) are members of the EAEU:

• Republic of Armenia;
• Republic of Belarus;
• The Republic of Kazakhstan;
• Republic of Kyrgyzstan;
• Russian Federation.

Syria and Tunisia announced their intention to join the CU, and a proposal was voiced to admit Turkey into the Union. However, nothing is known about specific actions to implement these intentions.

The management and coordination bodies in the EAEU are:

• The Supreme Eurasian Economic Council is a supranational body consisting of the heads of state of the EAEU members;
• The Eurasian Economic Commission (EEC) is a permanent regulatory body of the EAEU. The competence of the EEC includes, among other things, issues of international trade and customs regulation.

It would be fair to say that the Customs Union is one of the stages of a plan to strengthen economic ties between some states in the territory of the former USSR. In a certain sense, this can be seen as the restoration of once existing economic and technological chains, taking into account new political and economic realities.

An important aspect of the Union’s activities has become the system of centralized distribution of customs duties paid when crossing the borders of the Common Economic Space.

• Russia accounts for 85.33% of the total;
• Kazakhstan receives - 7.11%;
• Belarus - 4.55%;
• Kyrgyzstan - 1.9%;
• Armenia - 1.11%.

In addition, the Customs Union has a mechanism for coordinated collection and distribution of indirect taxes.

Thus, in its current state, the Customs Union is a way of economic integration of the states that are members of the EAEU.

Official information about the Customs Union can be obtained on the website of the Eurasian Economic Union - eurasiancommission.org.

History of the creation of the vehicle

To better understand the prerequisites and goals of creating the Customs Union, it will be useful to consider the evolution of integration processes in the post-Soviet space:

• 1995 - Belarus, Kazakhstan and Russia sign the first agreement on the creation of the Customs Union. Subsequently, Kyrgyzstan, Tajikistan and Uzbekistan joined the agreement;
• 2007 - Belarus, Kazakhstan and Russia enter into an Agreement on a single customs territory and the construction of the Customs Union;
• 2009 - previously concluded agreements are filled with specific content, about 40 international treaties are signed. A decision was made to form a single customs space on the territory of Belarus, Russia and Kazakhstan from January 1, 2010;
• 2010 - the Unified Customs Tariff comes into force, a common Customs Code for three states is adopted;
• 2011 - customs control is removed from the borders between the CU states and transferred to their external borders with third countries;
• 2011 - 2013 - the development and adoption of legislative norms common to the countries of the Union continues, the first unified technical regulation on product safety appears;
• 2015 - Armenia and Kyrgyzstan join the Customs Union.
• 2016 - Entry into force of the Agreement on a free trade zone between the EAEU and Vietnam. Statement by the presidents of the EAEU countries “On the digital agenda of the Eurasian Economic Union.”
• 2017 - “White Book” of barriers, exemptions and restrictions. Signing and ratification of the Treaty on the Customs Code of the EAEU.
• 2018 - Entry into force of the Treaty on the Customs Code of the EAEU. Granting the Republic of Moldova the status of an observer country in the EAEU. Signing of the Agreement on trade and economic cooperation between the EAEU and the PRC. Signing of an Interim Agreement leading to the creation of a free trade zone between the EAEU and Iran.

It must be said that integration processes, with different speeds and results, were constantly going on throughout the period described. Legislation and customs tariffs in trade with third countries were gradually brought to general norms.

Goals of the Customs Union and their implementation

The immediate goal of the Customs Union was stated to be an increase in markets for goods and services produced by its members. The calculation was made, first of all, on the growth of sales within the Common Customs Space of the Union. This was supposed to be achieved by:

• The abolition of internal customs duties, which should contribute to the price attractiveness of products produced in the Union;
• Acceleration of the turnover of goods due to the abolition of customs control and clearance when moving them within the Customs Union;
• Adoption of general sanitary-epidemiological and veterinary requirements, uniform standards for the safety of goods and services, mutual recognition of test results.

To unify approaches to quality and safety, an interstate agreement was concluded on mandatory certification of products specified in the “Unified List of Products Subject to Mandatory Assessment (Confirmation) of Compliance within the Customs Union with the issuance of uniform documents.” For 2016, over three dozen regulations on requirements for the safety and quality of goods, works and services have been agreed upon. Certificates issued by any state are valid in all others.

The next goal of the Customs Union should be the joint protection of the internal market of the Customs Union, the creation of favorable conditions for the production and sale, first of all, of domestic products of the Union member countries. At this point in the program, mutual understanding between states turned out to be somewhat less than in matters of mutual trade. Each country had its own priorities in the development of production, while protecting the interests of neighbors sometimes had a negative impact on importing enterprises and the population.

Contradictions in the CU

The Customs Union united states with a common past, including economic, but a different present, primarily economic. Each of the former Soviet republics had its own specialization during the Soviet period, and during the years of independence there were many other changes associated with attempts to find its place in the world market and in the regional division of labor. Belarus and Kyrgyzstan, states equally distant geographically and in structure, have few mutual interests. But there are similar interests. Since Soviet times, the economic structure of both countries has been built in such a way that it requires a Russian sales market. The situation in Kazakhstan and Armenia is somewhat different, but for them, ties with Russia are extremely important, largely for geopolitical reasons.

At the same time, the Russian economy until the end of 2014 grew successfully due to high gas and other raw materials. Which gave the Russian Federation financial opportunities to finance integration processes. This course of action may not have promised immediate economic benefits, but it did suggest an increase in Russia's influence on the world stage. Thus, the Russian Federation has always remained the real driving force of the processes of the Eurasian unification in general and the Customs Union in particular.

The history of integration processes in recent decades looks like a series of compromises between Russia’s influence and the interests of its neighbors. For example, Belarus has repeatedly stated that it is not the Customs Union itself that is important to it, but a single economic space with equal prices for oil and gas and access for enterprises of the Republic to Russian government procurement. For this purpose, Belarus agreed to increase tariffs on the import of passenger cars in 2010-2011, without having its own production of such products. Such a “sacrifice” also became the reason for the announcement of mandatory certification of light industry goods, which hit small retail trade hard. In addition, the internal standards of the Customs Union had to be brought into line with the norms, although Russia is a member of this organization (and enjoys the corresponding opportunities in international trade), and Belarus is not.

So far, the Republic of Belarus has not received the desired benefits in full, because... Questions about equalities with domestic Russian energy prices have been postponed until 2025. Also, Belarusian enterprises did not receive opportunities to participate in the Russian import substitution program.

It should be noted that the agreements of the Customs Union have many exceptions and clarifications, anti-dumping, protective and compensatory measures that do not allow us to talk about common benefits and equal conditions for all participants in the organization. Almost each of the CU states at certain points expressed their dissatisfaction with the contractual terms.

Despite the elimination of customs posts within the Union, border control between states remains. Inspections by sanitary control services also continue at internal borders. The practice of their work demonstrates neither mutual trust nor the declared unity of approaches. An example of this is the “food wars” that periodically arise between Russia and Belarus. Their usual scenario begins with non-recognition of the quality of products certified by the Belarusian side and leads to a ban on supplies to Russian consumers “until the deficiencies are eliminated.”

Advantages of the Customs Union

It is impossible to talk about achieving the goals declared at the conclusion of the Customs Union at the moment (2016), internal trade turnover between the CU participants is falling. There are also no particular advantages for the economy compared to the period before the agreements were concluded.

At the same time, there is reason to believe that without the agreement on the Customs Union the situation would have looked even more depressing. Crisis phenomena in each individual economy could have a greater scale and depth. Presence in the Customs Union gives many enterprises a comparative advantage in the intra-Union market.

The shared distribution of customs duties between the CU states also looks favorable for Belarus and Kazakhstan (initially, the Russian Federation claimed to transfer 93% of the total to its own).

The agreements in force in the Customs Union provide the opportunity for duty-free sales of cars produced in the territory of the Union in the industrial assembly mode. Thanks to this, Belarus received foreign investment in the construction of enterprises for the production of passenger cars. Until this time, such projects were not successful due to the small volume of the Belarusian sales market itself.

Practice of application of customs agreements

Studying the published information about the creation and functioning of the Customs Union, it is easy to notice that the declarative part, i.e. Ratified interstate agreements and general documents are mentioned much more often than specific figures for increasing trade turnover.

But the Union should obviously not be treated as a PR campaign. There is a noticeable simplification of the movement of goods, a reduction in the number of administrative procedures, and some improvement in competitive conditions for enterprises of the CU member countries. It is likely that filling the agreed upon uniform rules with economic content requires time and mutual interest not only between state institutions, but also between business entities within the Customs Union.