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EURASIAN : FACTS AND FIGURES

LIBRARY OF EURASIAN INTEGRATION 1H 2016 Eurasian Economic Commission

Contents

Introduction ...... 2

Development of the Eurasian Integration: 1994—2016 ...... 4

Timeline of Events ...... 10

The Member States of the Eurasian . Position in the world ...... 12

From the to the Eurasian Union ...... 20

Institutions of Eurasian Economic Integration ...... 32

Management Bodies of the ...... 34

Activity areas of the Eurasian Economic Commission ...... 38

Decision Making Process in Eurasian Economic Union ...... 50

Interaction of the EEC with Business Community of the Member States of the Eurasian Economic Union ...... 56

Eurasian Integration as а Part of Global ...... 60

Integration Segment of of the EAEU Member States ...... 70

Contact Information of the Eurasian Economic Commission ...... 75

1 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

Introduction

Dear colleagues, unique opportunity to participate in the medical products, in 2019 - a common management of the EAEU on an equal of electric power, to conduct a In 2016, the Eurasian Economic Union footing. Since then, the Commission, large-scale preparation for the start of (EAEU), an integration association of together with the Governments and the common markets of gas, oil and oil five partner countries - , leading business structures of first products, to address other global , , and three and then five countries, have challenges for the benefit of the citizens , celebrates its 1st year of made a lot of work in a number of of our states. establishment. sectors of economy - in , technical regulation, customs administration, The strategic success of our countries The Treaty signed by the Heads of the fiscal and policy, etc. can be achieved only with the Union’s States on May 29, 2014 in Astana lies in efficient operation. I would like to the basis of the EAEU. The Union was Within the Union, a market is being emphasise that the Commission’s the next stage of development of the created with a population of more than activity has no political component. It is Eurasian economic integration. The idea 180 million people living mainly under aimed at improving regulatory systems, was suggested by the President of common transparent rules, with a reduction administrative barriers for Kazakhstan back common system of technical regulation more reducing development of the in 1994. The first step involved the and common customs and Union countries’ economies. For this the establishment of the Customs Union, regulations. We took on the formation of purpose, the EEC maintains a consistent which has grown into the Common a common market with the dialogue with national business Economic Space. implementation of our basic principles: communities with regard to all major the free movement of , services, challenges, as it is business that is the Today, the Union is a recognized capitals and labour. A common market major beneficiary of the Eurasian economic integration association of services began its operation. Plans economic integration. The Commission having international legal personality. on the establishment of agreed ensures that the decision-making Almost 40 countries have formally transport, industrial and agroindustrial process is transparent and clear. That is expressed their desire to develop trade policies are being implemented. Much why, all regulatory instruments adopted and economic cooperation with the has been done directly for the citizens of by the EEC are discussed with business EAEU, creating areas. the Union - in the field of migration communities. Expansion of trade and economic ties policy, within the framework should give the impetus for establishing of common labour market. For the stable development of the strengthening the role of the Eurasian economies of the Member States, Economic Union in the world. The EAEU One of the main tasks of the Eurasian extension of cooperative collaboration has all the prerequisites to become one Economic Commission is to create, with of the Union countries’ business is of the key elements of the modern the help of management solutions, an extremely important. The countries of global economic architecture. of integration that is the EAEU face the task to integrate their stable of fluctuations and changes of industrial capacities to produce The Eurasian integration makes the economic environment and, ultimately, co-product and enter the markets of domestic market more transparent and contribution to raising the living third countries. clear for businessmen and investors, standards of the population of the Union thus contributing to its further countries. You’re holding a brochure that gives an expansion. Development of economic overview of the Eurasian economic integration in the backdrop of slowing This year, the new Board of the EEC took integration, its structure, goals, global could become up its duties. It is a big honor for me to objectives and prospects for a major drive for the diversification and head the Commission. This is a serious development. I hope that this economic development in the member responsibility. I and my colleagues - publication will be useful for all states. Ministers of the EEC, many of whom stakeholders. have experience in forming of the This is the fifth year of functioning of the Commission Board, will face serious Eurasian Economic Commission (EEC) and ambitious plans for deepening the - the EAEU permanent regulatory body. integration. This year, we plan to launch Chairman of the Board of the Eurasian In the EEC, the Union countries have a common markets of medicines and Economic Commission 2 3 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

Development of the Eurasian Integration: 1994—2016 2007 Just a year later, in October 2007, the Treaty on the Establishment of the Single and Formation of the Customs Union was signed. In a his- torically short period, the countries managed to create From February 1, 2016, new members of the Board of when the leader of the Republic of Kazakhstan Nur- a primary integration infrastructure and identify ways to the Eurasian Economic Commission (EEC) chaired by sultan Nazarbayev proposed creation on the Eurasian co-develop the Member States. the representative of the Republic of Armenia Tigran space of a really working union of states integrated Sargsyan started their work. Most of the members with economic relationships. Further acceleration of the integration processes was of the Board exercised their powers in the previous greatly due to the global economic crisis of 2008. It four-year cycle of the EEC operation, which ensured forced the states to seek new formats of cooperation a high level of continuity in the Commission. The 1995 for sustainable economic growth and new ways to decision that the former Prime Minister of Armenia Ti- In early 1995, the Republic of Kazakhstan, the The Agreement on Formation of the Common Economic minimize economic risks and also contributed to the gran Sargsyan would head the Board of the EEC was Republic of Belarus and the Russian Federation Space convergence of economic policies. All this resulted made in October 2015 at the session of the Supreme signed the Agreement on the Customs Union aimed in the acceleration of the “launch” of the Customs Eurasian Economic Council by the Presidents of the at removing obstacles to free economic interaction Union. five countries of the Eurasian Economic Union (EAEU) between economic entities of the parties, as well as in the Kazakh village Burabay. Taking into account ensuring free trade and fair competition. The Cus- the four-year practice of the Commission, as well as toms Union of the 1990s failed to really operate for a 2010 spheres of regulations within the competence of the number of reasons. However, the experience - The Customs Union of the Republic of Belarus, the EEC currently and in the mid-term, the heads of the tained was indispensable to develop further effective Republic of Kazakhstan and the Russian Federation EAEU Member States changed the number of the strategy for a phased convergence of neighbouring 1998 began its work in January 2010 and just a year and Board members. Now, the EAEU Member States are countries, which are best prepared for integration. a half after, in July 2011, it started to operate at its full represented by ten Members of the Board — Minis- In 1998, the Republic of joined the Treaty. capacity: the customs territories of three states were ters, including the Chairman — two Ministers from combined into the common customs territory. Within each Member State. 1996 The intention to move towards closer cooperation on the territory, the rules of the Customs Code, the single In 1996, the Leaders of the three states, together with the basis of unification of the regulatory framework and customs tariff, the single system of foreign trade and the Head of the Kyrgyz Republic, signed the Treaty on harmonization of processes of economic restructuring customs regulations, as well as the common legal 1994 Deepening Integration in Economic and Humanitarian has led the leaders of these countries to the creation framework in the sphere of technical regulation began In recent history of the Eurasian integration a new Areas. The document reflected close economic and in 2000 of a new integration structure — the Eurasian to be applied. chapter began. Each page is valuable and significant cultural ties, common history. However, the provisions Economic Community (EurAsEC). in its own way. It cannot be torn out of the single book of the Treaty looked into the future — the Republic of for the Member States of the Union without prejudice Belarus, the Republic of Kazakhstan and the Russian to the meaning, and its content continues to be added Federation stated the indissoluble prospects for a 2003 daily. The prologue of this big book starts in 1994, common economic development. Since 2003, the work on formation of the legal frame- work of the Common the Economic Space was even more intensified. joined the process. But its involvement in the Eurasian integration processes quickly subsided.

2006 In 2006, the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation were again at the forefront of the formation of the Customs Union and the Common Economic Space. The Presidents of these countries made a joint decision at the summit in Sochi. It was agreed that the Kyrgyz Republic and the The Treaty on Creation of the Common Customs Territory and Republic of Tajikistan would join when their economies Establishment of the Customs Union are ready.

The Treaty on Deepening of Integration in Economic and Humanitarian Areas

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to the common market of three countries, an ability to In May 2013, the Memorandum on deepening 2011 freely choose where to register their companies and cooperation between the Eurasian Economic Com- On November 18, 2011, Presidents Alexander Lu- do business, to sell products in any Member State of mission and the Kyrgyz Republic was signed. The kashenko, Nursultan Nazarbayev and Dmitry Medve- the CES without undue restrictions, to have access to purpose of the Memorandum is maintaining and de- dev signed a Declaration on the Eurasian Economic transport infrastructure, etc. Creation and gradual ad- velopment of cooperation based on the principles of Integration. Having noted success of the Customs justment of mechanisms of the operation mutual respect, deepening cooperation between the Union in this document, the Heads of the Republic of were an important part of the plans of the CU and the Kyrgyz Republic and the CU and the CES Member Belarus, the Republic of Kazakhstan and the Rus- CES Member States to move from resource-based States in various economic sectors. sian Federation expressed conviction that the further economy to innovation economy. development of integration based on the profound On September 3, 2013, the Armenian President economic and spiritual links between the peoples of On February 2, 2012, the Eurasian Economic Com- expressed the country’s intention to the three countries met their national interests, as well mission (the EEC) started its work. For the first time in a join the Customs Union and the CES and to further as promoted well-being and quality of life of citizens twenty-year history of the Eurasian integration process, integrate by participating in the formation of the Eur- and enhanced national competitiveness in the global a permanent supranational regulatory body with real asian Economic Union. economy. The Declaration announced the transition to powers in a number of key sectors of the economy 29.05.2014 the next stage of integration — the Common Economic was established. The EEC provides conditions for the On October 24, 2013, at the session of the Supreme Signing the Treaty on the Eurasian Economic Union Space (the CES). functioning and development of the Customs Union Eurasian Economic Council the Presidents of the and the Common Economic Space, and the ela- Member States considered the application of the Re- boration of proposals for the further development of public of Armenia and instructed the EEC to launch 2012 integration. the work on accession. The EEC Working Group es- tablished for this purpose developed a corresponding By , 2012, a legal framework of the CES “road map”. as a market with 170 million consumers, the unified 2013 legislation, free movement of goods, services, capi- On December 24, 2013, the road map on accession 2014 tal and labour, was formed. The CES was based on 2013 was one of the most significant periods in of the Republic of Armenia to the CU and CES was concerted action in key areas of economic regulation: the improvement and development of the Eurasian approved at the level of the Heads of the States during On May 29, 2014, Astana hosted the session of the in , competition policy, the field of integration processes. In particular, there were con- the session of the Supreme Eurasian Economic Coun- Supreme Eurasian Economic Council, where Pre- industrial and agricultural subsidies, transport, energy, ditions to continue work to ensure accession of the cil. The Presidents of the major three states of the Cus- sidents , Nursultan Nazarbayev tariffs of natural . The benefit from the CES Kyrgyz Republic to the Eurasian integration project toms Union and Armenia adopted the Statement “On and signed the Treaty on establishment was clear both to the population and to the business launched by the decision of the EurAsEC Interstate participation of the Republic of Armenia in the Eurasian of the Eurasian Economic Union. Many the Etablish- community. Entrepreneurs were given equal access Council which has been adopted back in 2011. integration process” and welcomed the intention of the ment and experts called this project the most am- Republic of Armenia to accede to the Customs Union bitious and at the same time the most realistic and and the Common Economic Space, and then become relying on the evaluated economic advantages and a full member of the Eurasian Economic Union. mutual benefits. Ample opportunities were opened for the business community of the Member States: the Treaty gave the “green light” to the formation of new 2013—2014 dynamic markets with single standards and require- ments for goods, services, and labour. In 2013-2014, the Eurasian Economic Commission and the authorised authorities of the Republic of On October 10, 2014, the Treaty on Accession of Belarus, the Republic of Kazakhstan and the Russian the Republic of Armenia to the EAEU was signed in Federation were actively preparing the Treaty on the . The document was adopted at the session of Eurasian Economic Union (EAEU) on behalf of their the Supreme Eurasian Economic Council, which was Presidents. Its adoption resulted in the completion of attended by Heads of the Member States. On the the codification of international treaties that constitute same day, Presidents Alexander Lukashenko, Nursul- the regulatory legal framework of the Customs Union tan Nazarbayev and Vladimir Putin approved the “road and the Common Economic Space. map” for the accession of the Kyrgyz Republic to the Common Economic Space. During this period, 5 rounds of negotiations were held to finalize the draft Treaty, which were attended by On December 23, 2014, hosted the meeting more than 700 experts from Member States and the of the Supreme Eurasian Economic Council, where EEC. The final document containing nearly 1000 pages the Commencement of the Common Economic Space is divided into 4 parts that include 28 sections, 118 signed the Treaty on Accession of the Kyrgyz Repub- articles and 33 annexes. lic to the EAEU.

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From January 2, 2015, after the completion of the rati- 2016 on the EAEU, the EAEU Member States together with fication procedures, the Republic of Armenia became a the Commission have strengthened the impact of the full member of the Eurasian Economic Union. In the Eurasian Economic Union, the common market Union on external directions. Its prestige and impor- of medicines and medical products is scheduled to tance in the international arena have increased signifi- In March 2015, the first documents necessary to be launched at the end 2016. The common system cantly. This is confirmed not only by the expansion of launch operation in the Union of the common markets introduced in the EAEU in this sphere will ensure their the Eurasian Economic Union after the accession of of medicines and medical products were presented safety, efficiency and quality, create optimal condi- the Republic of Armenia and the Kyrgyz Republic, but for public discussion. October 2015 saw the last of the tions for strengthening competitiveness on the global also by the growing interest in close cooperation with thirty-five documents adopted by the EAEU countries market. the EAEU shown by many countries around the world: and the Commission. , , , , , , , Since March 1, 2016, within the EEC two new depart- and ASEAN, and others. An important On May 29, 2015, the EAEU Member States and Viet- ments started their work: the Labour Migration and element of the strategy of economic cooperation in the nam signed an agreement on establishment of a free Social Security Department and the Internal Market EAEU may be a direct dialogue between the Eurasian trade zone. The document the suggests zeroing of the Functioning Department. The first one deals with mat- and European Commissions. The prerequisites for duties for 90% of products will give an opportunity to ters related to labour migration and social security of such a dialogue have been created. increase by 2020 the trade turnover of the EAEU Mem- workers, as well as matters in the 02.01.2015 ber States and Vietnam more than twice. The agree- EAEU countries. The main task of the second one is In contrast to the global downturn, the consistent Accession of Armenia to the Eurasian ment marked the beginning of the subsequent closer consistent and effective removal of barriers, exceptions and successful transformation of the Eurasian space, Economic Union integration of the EAEU with the -Pacific Region. and restrictions in the domestic market of the Union. based on the market economic principles with preser- vation of political independence and the existing

In May 2015, the Presidents of the Member States Over the last four years, with 2015 being the year of cultural identity of the sovereign states, still continues. of the Eurasian Economic Union decided to start particular activity, due to acquisition by the Union of the The global Eurasian integration book is being filled with negotiations with China on conclusion of an agree- international legal personality after signing the Treaty new chapters. ment on trade and economic the cooperation. This is an important stage in the development of economic 2015 cooperation sequencing the entire structure of relations and providing a basis for further progress in the area of The Eurasian Economic Union started its operation trade simplification and elimination of non-tariff barriers from January 1, 2015. The Republic of Belarus was that restrict reciprocal access to markets. In order to the first Chairman of the supreme bodies of the asso- organise this activity efficiently, in October 2015 the ciation — the Supreme Eurasian Economic Council at presidents adopted a disposition on the coordination the level of Heads of the States, the Eurasian Intergov- of Presidents of the EAEU Member States on conjunc- ernmental Council at the level of Heads of the Govern- tion of the Eurasian Economic Union and the ments and the EEC Council at the level of Vice Prime Economic Belt. Formal negotiations started in the first Ministers. half of 2016.

At the same time, from January 1, 2015, a single On August 12, 2015, after implementation of the “road services market, under which providers were map” and the completion of the ratification procedures, given the maximum level of freedom, began to operate the Kyrgyz Republic became a full member of the Union. in a number of sectors identified by the EAEU Member States. In October 2015, at the Supreme Eurasian Economic Council, the Presidents of five Member States of the The total number of service sectors in the common Union approved the Main Directions of Economic market is 43. In value terms, it is almost 50% of the Development of the EAEU up to 2030. It is an impor- total volume of services in the Member States of the tant document, which defines further coordination Union. Currently, the parties are actively working on of national policies and ways of improving the com- expansion of these sectors by, among other things, petitiveness of the economies of the EAEU Member the phased reduction of exemptions and restrictions, States. The effect of participation in the EAEU by 2030 which will strengthen the Eurasian integration is estimated to be 13% of additional GDP growth for project. the Member States.

Supreme Eurasian Economic Council

8 9 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

Timeline of Events

The decision of the Supreme Eurasian The Heads of the states of the “Customs Economic Council On the entry into force of Three” and Armenia adopted the Application international treaties forming the Common “On accession of the Republic of Armenia to Economic Space the Eurasian integration process”

1994 2007 Declaration on Eurasian Economic Lecture of the The Treaty on the Commission of the Customs Integration Nursultan Nazarbayev in Moscow State Union 29.05.2014 University Signing the Treaty on the Eurasian The Treaty on Creation of the Common Economic Union 1995 Customs Territory and Establishment of the Customs Union 02.02.2012 The Agreement on the Customs Union Commencement of the Common Economic Space 01.01.2015 2010 The Agreement on the Customs Union The Treaty on the Eurasian Economic Union coming into force Creation of the Customs Union The Eurasian Economic Commission’s commencement of operation 1996 Unification of the customs territories of the 02.01.2015 The Treaty on Deepening of Integration in three countries into the common customs 2013—2014 Economic and Humanitarian Areas territory on the basis of the common The work of the EEC and authorised authorities Accession of Armenia to the Eurasian Customs Code of the Republic of Belarus, the Russian Economic Union Federation, the Republic of Kazakhstan on the preparation of the Treaty on the Eurasian 1999 2011 Economic Union

The Treaty on the Customs Union and the The Treaty on the Eurasian Economic 12.08.2015 Common Economic Space Commission Memorandum on deepening of cooperation between the Eurasian Economic Commission Accession of Kyrgyzstan to the Eurasian and Kyrgyzstan Economic Union

2000 Declaration on Eurasian Economic Integration The Treaty on Establishment of the Eurasian Economic Community (EurAsEC)

01.01.2012 2003—2006 Treaty on the Eurasian Economic The Agreement on Formation of the Common Commission Economic Space

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The Member States of the Eurasian Economic Union WORLD RANKING OF INDIVIDUAL ECONOMIC AGRICULTURAL PRODUCTION. EAEU SHARE IN Position in the world INDICATORS OF THE MEMBER STATES OF THE THE WORLD PRODUCTION IN 2015, % EURASIAN ECONOMIC UNION IN 2015 (%)

Exatraction. The EAEU share in the world production 16.6 27.4 25.6 14.2 23.2

17.5 14.4 Territory and population 6 11.0 10.5 5

4.6 3.5 The Russian 1.9 More than Federation 1st 2nd 4th 6th place place place place 1st place 182.7 Crude oil (including gas Electricity condensate) output mln people Production. The EAEU share in the world production

More than 35.8 20 The Republic 2nd place The Republic of Kazakhstan mln sq.km of Belarus Sunflower (for )

4.8 4.8 3rd place

1st 4th 5th Potatoes place place place 14% The Kyrgyz Potash fertilizers Steel The Republic Republic 4th place of the world dry of Armenia Cast iron and pulses land The EAEU share in the world road length Meat products (livestock and poultry for slaughter) 7.8 5th place General economic indicators in 2015, USD bln 2.6 Vegetables and gourds * * 1,587.1 579.4 45.7 945.5 3rd 5th place place

volume of foreign volume of mutual trade industrial production Total rail mileage Total stretch of road gross domestic trade with third between the EAEU product of the EAEU countries Member States

* The data is represented based on the current .

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Results of the mutual trade in the Eurasian Economic Union THE STRUCTURE OF MUTUAL TRADE BY COMMODITY AGGREGATES FOR THE H1 2015 AND 2016 Member States in the first halves of 2015 and 2016 (AS PERCENTAGE OF TOTAL), %

January — June, 2015 January — June, 2016 Mineral Chemicals THE VOLUMES OF THE MUTUAL TRADE BETWEEN THE EAEU MEMBER STATES IN H1 commodities OF 2015 AND 2016 2.8 10.1 4.0 9.1 H1 2015, H1 2016, H1 2016 Share in volume 10.5 12.3 Machinery, Fabrics, USD mln USD mln in % to H1 2015 for H1 2016, % equipment textile goods 10.5 and vehicles and footwear 10.5 EAEU 22,870.9 18,979.5 83.0 100.00 31.8 35.6 15.4 including: 16.5 Food products Other goods and agricultural Armenia — Belarus 18.2 13.8 75.7 0.07 15.1 15.8 stock

Armenia — Kazakhstan 2.8 2.4 82.7 0.01 Metals Armenia — Kyrgyzstan 0.2 0.1 60.2 0.00 and metal goods

Armenia — Russia 570.7 537.6 94.2 2.83

Belarus — Kazakhstan 302.1 157.7 52.2 0.83 THE VOLUME OF SUPPLIES IN BILATERAL TRADE OF THE MEMBER STATES OF THE EAEU

Belarus — Kyrgyzstan 21.3 17.7 82.8 0.09 H1 2015 H1 2016 H1 2016 in % to Share in volume for Belarus — Russia 12,789.1 11,825.3 92.5 62.31 USD mln USD mln H1 2015 H1 2016, %

Kazakhstan — Kyrgyzstan 487.8 201.7 41.4 1.06 EAEU 22,870.9 18,979.5 83.0 100.0

Kazakhstan — Russia 7,930.2 5,682.8 71.7 29.94 including:

Kyrgyzstan — Russia 748.5 540.4 72.2 2.86 Armenia 95.2 174.8 183.6 0.9

Belarus 5,333.2 4,991.8 93.6 26.3

Kazakhstan 2,751.9 1,803.7 65.5 9.5 * Total monetary volume of the export transactions of the Member States in mutual trade.

Kyrgyzstan 212.9 104.3 49.0 0.6

Russia 14,477.7 11,904.9 82.2 62.7 In H1 2016, in comparison to the same period of of Belarus — from 48.7% to 51.8%, in the Russian 2015, the share of mutual trade in the overall for- Federation — from 8% to 8.6%, in the Republic of eign trade within the EAEU increased from 13.4% Kazakhstan the indicator has slightly changed from to 14.2%. In the Republic of Armenia, this indica- 21% to 20.8%. The share of mutual trade in the total tor has risen from 25.6% to 28%, in the Republic foreign trade for the Kyrgyz Republic decreased from 45.1% to 36%.

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Results of the foreign trade in goods produced in the EAEU Member States Commodity Composition of STRUCTURE OF EXPORT AND OF GOODS IN FOREIGN TRADE in the first half of 2016 and FOR THE FIRST HALF OF 2016 (AS PERCENTAGE OF TOTAL), % Export Import In the commodity composition of exports of the EAEU Member 5.2 States to third countries, mineral 9.5 VOLUMES OF FOREIGN TRADE IN GOODS OF THE EAEU MEMBER STATES WITH THIRD COUNTRIES FOR THE products (60.7% of the total 3.5 41.6 FIRST HALF OF 2016, USD MLN exports of countries of the Union 10.7 8.5 Member States to third countries), 0.3 6.7 metals and metal products 10.7%, 3.3 6.3 chemical products 6.8% dominate. Export Import Balance In % to H1 2015 6.8 60.7 1.9 14.4 19.3 1.3 export import The biggest share in imports is taken by machines, equipment and Food products Fabrics, textile goods vehicles (41.6% of total imports), and agricultural stock and footwear EAEU 140,542.7 88,117.4 52,425.3 70.7 89.7 chemical products (19.3%), food products and agricultural raw Mineral commodities Metals and metal goods including: materials (14.4%).

Chemicals Machinery, equipment Armenia 640.2 979.4 –339.2 106.2 95.3 The main share of exports of the and vehicles Member States (85.9%) falls on Belarus 6,148.4 5,481.8 666.6 73.4 86.7 intermediate goods, including Wood materials Other goods energy products with 59.1%, other and pulp and paper goods Kazakhstan 14,983.1 7,226.5 7,756.6 68.6 72.3 intermediate goods with 26.8%.

Kyrgyzstan 406.0 1,104.0 –698.0 73.8 114.6 In imports of the Member States intermediate goods (43.6% of Import purchases are concentrated countries, the largest volumes Russia 118,365.0 73,325.7 45,039.3 70.7 91.8 total imports) and consumption in the countries of the European account for China (21%), the United goods (32.8%) prevail. The share of Union (41.9% of total imports of States (6.4%), (3.8%), South goods is 20.5%. goods) and the APEC (40.4%). (2.6%). In the CIS countries Among the 4.3% of goods were purchased, Geographical distribution of countries, significant are supplies including the Ukraine — 2,7%. The foreign trade from (11.7%), (4.8%), share of accounts for 1.9% of (4.7%). Among the APEC total imports of the Member States. CONTRIBUTIONS OF THE EAEU MEMBER STATES IN THE AGGREGATE INDICATORS OF FOREIGN TRADE The main buyer of goods exported (AS A PERCENTAGE OF THE TOTAL FOR THE EAEU), % by the Member States is the European Union (51.1% of total FOREIGN TRADE OF THE EAEU BY COUNTRIES — MAJOR TRADE Turnover Export Import exports). PARTNERS, USD BLN

Among the countries of the (Next to the name of the country, its share in the total foreign trade is indicated) 0.7 0.3 European Union significant 1.3 are supplies of goods to the CHINA, 14.8% 15.3 18.5 9.7 10.7 8.2 Netherlands (11.6%), Germany GERMANY, 8.9% 10.1 10.3 (7.2%), Italy (6%), (3.2%). NETHERLANDS, 16.3 1.7 5.1 4.4 6.2 7.9% ITALY, 5.6% 8.4 0.7 0.4 4.2 83.8 84.2 83.2 1.1 24.2% of exports are sold to THE USA, 4.4% 4.3 5.6 the APEC countries, including TURKEY, 3.8% 6.9 1.7 China — 10.9%, Japan — 3.4%, JAPAN, 3.5% 4.8 3.3 — 3.3%. Exports to FRANCE, 3.2% 3.1 4.1 Turkey accounted for 4.9% of total POLAND, Armenia Belarus Kazakhstan Kyrgyzstan Russia exports of the Member States. 3.1% 4.5 2.5 THE REPUBLIC OF KOREA, The CIS countries bought 5.5% 3.0% 4.7 2.3 Export UKRAINE, of the goods exported, of which 2.9% 4.3 2.4 Import Ukraine — 3%. GREAT BRITAIN , 2.6% 4.2 1.8 , 1.9% 3.3 1.1

20.015.010.05.00.0 5.0 10.0 15.0 20.0 16 17 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

Statistical information on the results of external and mutual trade Industrial Production in goods of the EAEU Member States In the first half of 2016 compared to the first half of LEVEL IN THE EAEU, % 2015 the index of industrial production of the Eurasian 9.6 9.6 Economic Union was 100.1% (in 1H 2015 vs 1H 9.4 2014 — 97.4%), in June 2016 compared with June 2015 — 101.6%, compared with May 2016 — 101.8%. 7.3 Total volume of foreign trade in goods of the Member States of the Customs Union and the Common Economic Space with third countries amounted to USD 907.2 bln, 5.7 In the structure of industrial production of the EAEU, 5.3 including exports — USD 581.4 bln, imports — USD 325.8 bln. 2011 in the first half of 2016, the largest share was held Volume of mutual trade in goods (amount of the cost volumes of export operations of by processing industry (64.7%). Its share increased the Member States of the Customs Union and the Common Economic Space in mutual compared to the first half of 2015 by 1.2 pp. The trade) amounted to USD 63.1 bln. share of and quarrying amounted to 24.2% (decreased by 1.8 pp). EAEU EU USA Total volume of foreign trade in goods of the Member States of the Customs Union and the Common Economic Space with third countries amounted to USD 934.6 bln, including 2010 2015 2012 exports — USD 593.7 bln, imports — USD 340.9 bln. In the first half of 2016, in the farms of all categories of Volume of mutual trade in goods of the Member States of the Customs Union and the the Member States of the Eurasian Economic Union, Common Economic Space amounted to USD 67.8 bln. agricultural production increased at constant prices by 2.7% compared to the first half of 2015 (in 1H 2015 vs 1H 2014 — by 2.9%). THE AVERAGE MONTHLY NOMINAL SALARY Total volume of foreign trade in goods of the Member States of the Customs Union and IN THE EAEU MEMBER STATES (USD)* the Common Economic Space with third countries amounted to USD 933.0 bln, including The biggest growth is observed in Armenia and 2013 exports — USD 587.7 bln, imports — USD 345.3 bln. Belarus — 3.3%, it was 2.7% in Kazakhstan, 2.9 in Kyrgyzstan. Russia with an increase of 2.6% rounds 2010 2015 Volume of mutual trade in goods of the Member States of the Customs Union and the out the top five. Common Economic Space amounted to USD 64.5 bln. In the first half of 2016, production of major livestock Armenia** 274.7 386.4 products also increased. Amount of livestock and poultry Total volume of foreign trade in goods of the Member States of the Eurasian Economic increased by 5.4% to more than 8 million tons, by 0.6 Belarus 406.6 413.1 Union with third countries amounted to USD 868.7 bln, including exports — (22.5 million tonnes), eggs by 2.3% (26.6 million). 2014 USD 556.8 bln, imports — USD 311.9 bln. Kazakhstan 526.7 568.4 Volume of mutual trade in goods of the Member States of the Eurasian Economic Union Social Indicators of the Member States of the amounted to USD 58.5 bln. Eurasian Economic Union Kyrgyzstan 156.4 209.2

Unemployment level in the Union, according to the Russia 690.1 561.0 results of 2015, is 5.7%, which is better than the EU Total volume of foreign trade in goods of the Member States of the Eurasian Economic value (9.4%) and similar to the USA value (5.3%). Union with third countries amounted to USD 579.4 bln, including exports — 2015 USD 373.9 bln, imports — USD 205.5 bln. A trend for alignment of economic development level between the Union Member States has appeared, * The indicator is calculated based on the exchange rates of national (central) Volume of mutual trade in goods of the Member States of the Eurasian Economic Union banks of the Member States of the EAEU for the year: in Belarus — based on despite the differences in the scale of the economy and amounted to USD 45.7 bln. the average exchange rate of the against the US dollar, in Ar- the global crisis. A gap in the per capita GDP fell from menia, Kazakhstan, Kyrgyzstan and Russia — based on the average exchange USD 9.8 thous. in 2010 to USD 9.4 thous. in 2015. A rates of national currencies to the US dollar. gap between the Member States in the level of labour ** Since 2013, payments for labour and other payments equivalent to them Total volume of foreign trade in goods of the Member States of the Eurasian Economic renumeration, labour ; availability of scientific have included payments of the employer for mandatory social insurance; the Union with third countries amounted to USD 228.6 bln, including exports — salaries of military personnel have also been taken into account. For 2015 only staff, unemployment figures has been also reduced. preliminary data are available. H1 2016 USD 140.5 bln, imports — USD 88.1 bln. Volume of mutual trade in goods of the Member States of the Eurasian Economic Union amounted to USD 19 bln.

18 19 1H 2016 Eurasian Economic Commission Eurasian Economic InteIntegrationgration: Facts and FiguresFigures

From the Customs Union to the Eurasian Union What does the Customs Union stand for?

The Customs Union (CU) is handed over to the Customs Union middle of September 2016, 1 more primarily a single market with Commission1. investigation is being carried out. an application of the norms of the common Customs Since that moment and pursuant On , 2010, the Customs Code Code, a Single Customs to the international treaties of the Customs Union came into Tariff, a system of the Commission has been effect. A common regulation system measures for the internal authorized to: in this area was launched in three market, a unified system of countries. Normative documents on • change the rates of import foreign trade and customs customs administration, including customs duties; regulation, as well as a single common rules for the declaration legal framework in technical • maintain the Commodity of goods, payment of customs regulation. Customs duties Nomenclature of Foreign duties and single customs regimes and restrictions of economic Economic Activity of the have been adopted. Common nature are not applied on its Customs Union; rules for determining the customs territory. value and the origin of goods • set the tariff preferences and tariff have been applied. A system quotas; The Customs Union provided of information and analytical of goods. • determine the tariff preferences support of the customs tariff and Therefore, at this stage, the key structure; non-tariff regulation processes trends in integration work are the • introduce non-tariff regulatory has been created. Due to the customs cooperation, trade and measures. above measures, the number of technical regulation. The main task documents required for registration to be resolved by the states was of customs declarations has been the development of a common From July 1, 2010, the Commission significantly reduced. Common legal framework in the key areas was empowered to conduct rules for declaration of goods in the of work and creation of conditions investigations and other procedural Customs Union were formulated for the start of the harmonization actions prior to the introduction for business. The process of of national laws of the Member of safeguard, anti- and customs clearance has become States in other areas of activities compensatory measures in the more transparent, consistent and brought from the national to the common customs territory of the convenient for the participants of supranational level. Customs Union in respect of goods foreign economic activity. originating from foreign countries. The Customs Union was formed In order to improve the efficiency of sequentially. In October 2007, the Thus, from 2011 till now, the customs authorities, the information Heads of the Republic of Belarus, Commission has conducted and reference list of checkpoints the Republic of Kazakhstan and 25 investigations (including 7 across the external of the the Russian Federation signed the repeat investigations). Following Customs Union has been adopted. Treaty on the Establishment of a their outcomes, the Commission In addition, implementation of Common Customs Territory and introduced 4 special protective compulsory preliminary information Formation of the Customs Union. measures — against damage of the goods imported into the caused by a sharp increase in Customs Union by road and rail By January 1, 2010, legal imports to the Union, and 15 anti- has been provided. The work on conditions necessary for the dumping measures to compensate preparation of a similar decision for union to start operating were the damage caused to industry the goods transported by air has created, when the competence of sectors by unfair competition been conducted. the foreign trade regulation was from foreign suppliers. As of the

1 From February 2, 2012 the Eurasian Economic Commission operates instead of the CU Commission.

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At this stage of integration, local use within the territory of any Customs Union in 2012—2015 What does the Common Economic Space stand for? maintaining of the customs Member State began to freely move was started. Their implementation statistics of foreign and mutual within the single customs territory. will allow for the transfer to the trade of the Member States declaration of goods mainly in The formation of the Com- Common Economic Space of Systematic work to identify and has been arranged. A single electronic form, provide technology mon Economic Space (the Belarus, Kazakhstan and Russia eliminate exemptions from the free statistical portal on ten signs of The paid duties were distributed development of preliminary CES) represents provision was adopted. According to the said trade regime was carried out. This the Commodity Nomenclature of into the state budgets of the triad in informing and declaration of goods. of the so-called four “free- Action Plan, a number of relevant work was launched by the Eurasian the Foreign Economic Activity has compliance with following agreed It was expected that this work doms”: movement of goods, international treaties were signed by Economic Commission in 2013 on been created. This allowed to fully breakdown: would aid to transfer focus from services, capital and labour. the Heads of the Member States. behalf of the Heads of the Member understand the structure of export- customs to postrelease stage to Therefore, creation of condi- A year later, on January 1, 2012, States of the Customs Union and import operations. As a result, the Belarus control the goods. tions favourable for the prin- by the decision of the Supreme the Common Economic Space. business of the Union countries ciple of free movement of Eurasian Economic Council, was able to quickly track actions 4.7% Activities in the sphere of the services, capital and labour 17 basic international treaties Removal of restrictions in mutual of unfair foreign competitors, technical regulation, sanitary, and also elimination of the forming the Common Economic trade continued. It was based on providing strong arguments to phytosanitary, veterinary measures rest of exemptions prevent- Space were put into effect. In 2013, the unification of customs tariffs, the Commission for relevant Kazakhstan including those aimed to design ing free movement of goods another treaty was signed. formation of a single customs investigations. and adopt the technical regulations were determined to be the tariff established on the basis of the Customs Union and the main goals of economic in- During the formation of the CES of the methodology agreed by 7.33% In mutual trade in the Customs interstate standards also were the tegration at the stage of CES the work in the field of customs, the Member States, non-tariff Union, the procedure of levying most crucial focus area of the Union construction. trade and technical regulations regulation measures, application of indirect was used. Practice states at this stage. In fact, it is a key that prevailed at the stage of the regulatory tools for trade in goods for electronic data exchange on Russia element in formation of a common CES formation was continued. with third states. the amounts of indirect taxes paid market with no technical barriers, The area of cooperation between between authorities of the three 87.97% with unified requirements to safety In order to implement the the member states of the Consistent and comprehensive states was formed. of the goods and with a unified base integration processes envisaged integration project on ensuring work was conducted in the sphere of standards. A modern regulatory in the near future, an important full-fledged freedom of movement of technical regulation, sanitary, Agreement on Establishment and framework in the sphere of technical area of work at the stage of of services, capital and labour veterinary and phytosanitary Application in the Customs Union of By the end of 2011, regulation contributes to improving the Common Economic Space was expanded. measures, as well as in the the Procedure for Transferring and contractual and legal the competitiveness of the products introduction was codification of development and adoption of Distributing Import Customs Duties framework of the Customs manufactured in the Union and on international treaties forming the The work on ensuring smooth technical regulations and interstate (other Duties, Taxes and Fees Union has been formed. At the world market. Customs Union and the Common movement of goods, in particular, standards. Active development of Having Equivalent Effect) came this stage, it included more Economic Space. This included, on improving customs legislation technical regulations governing into force. The import customs than 70 international treaties The Eurasian Economic in particular, preparation for the and declaration, including electronic product safety of the Union duties began to be credited to and over 900 decisions of the Commission that started to operate signing by the Presidents of the declaration, and introducing countries and its processes related the common account of the Commission of the Customs on February 2, 2012 was granted Member States of the draft Treaty the principle of the priority of thereto continued. An increasing authorised authority of that member Union. all the powers necessary in the filed on the Eurasian Economic Union. electronic information over paper number of goods circulating in the state where they were subject to of the technical regulation, sanitary, documents. Customs operations Customs Union and the Common payment. On July 16, 2012 the Council of the phytosanitary and veterinary The CES has been formed were simplified, a “single window” Economic Space became safer, Eurasian economic commission measures. By the end of 2012, gradually, by increasing the level of system was developed. their quality improving. From July 1, 2011, the customs approved a new edition of the the integration unit adopted 24 integration, through synchronization control at the internal Commodity Nomenclature of the common technical regulations. of economic transition made by the between Belarus, Kazakhstan and External Economic Activity and Member States, cooperative efforts Russia has been fully removed. All the Common Customs Tariff of the At the stage of the Customs in conducting an agreed economic types of control and registration Customs Union with regard to terms Union, the legal foundations policy, harmonization and were transferred to the external of Russia’s joining the WTO. for successful development of unification of legislation in economy, border of the Customs Union. The other areas of activities were trade and other areas. The work introduction of the single customs To further simplify the movement laid. It gave the possibility to was conducted with respect to the territory was completed. Goods and of goods, development of Main smoothly move to the next generally recognized norms and vehicles of the Customs Union and directions for improvement of stage of integration — the principles of international law, as third states after their release for customs administration in the Common Economic Space. well as the expertise of the world’s best legal practices.

On December 19, 2010, by the decision of the supreme body of the Customs Union, an Action Plan for the introduction of the

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reliability of the energy complex, to The Eurasian Economic protection and enforcement and Member States in October 2013. optimize the use of primary energy Commission in a close dialogue labour migration was developed. By It, in its turn, defines the common resources and to increase non- with the business representatives May 2014, the date of signing the methods of dealing with the main resource export potential. and the expert community of the Treaty on the Eurasian Economic provisions of national legislations on integration association member Union, in order to supplement the competitive policy of the member A similar job was done in the states was working on development commenced agreements, dozens of states of the integration project. sphere of industrial policy, i.e. in of entrepreneurship in the Union agreements and decisions in these The model law was a reference May 2013 the Supreme Eurasian countries and creation of a fully- areas were signed and adopted point for Belarus, Kazakhstan and Economic Council at the prime- featured domestic market of including those of direct action. Russia in law-making in the field of minister level adopted the Decision financial services in banking, competition policy. “On main directions to coordinate insurance and securities market. At this stage of integration, in the national industrial policies of the The work on liberalization of accordance with the decision of The work on deepening integration Republic of Belarus, the Republic relations in the framework of the the Supreme Eurasian Economic between the participants of the of Kazakhstan and the Russian Eurasian project in the sphere of Council of January 1, 2014, the Eurasian economic project made Federation”. This document investment and on creation of a Commission was empowered at the stage of introduction of the established a concept of the common market of services was to monitor compliance with Common Economic Space allowed industrial policy within the CES, conducted. For the purposes of, common rules on competition the Member States of the Customs defined the main areas of industrial among other things, achieving in the transboundary markets of Union and the Common Economic cooperation between the Member the free circulation of services, the CU and the CES. Delegation Space to create conditions to States as well as the tracks on capital and labour a number of of this authority is backed by the establish the Eurasian Economic cooperation with the Business basic agreements in the sphere Model Law “On Competition” Union, which started functioning on Dialogue of Belarus, Kazakhstan, of intellectual property rights approved by the Presidents of the Janary 1, 2015. Russia and the representatives of Development of coordinated sectors and evolution of the credit the business communities of the policies in the most important and financial system. Work in both parties. The list of economy sectors economic sectors was launched. of these areas includes directions in top priority for the industrial What does the Eurasian Economic Union stand for? macro-economic, transport, that unfold the potential of the interaction within the CU and CES energy, agriculture, foreign Eurasian economic integration, was also determined. exchange and migration policies, the best practices applied in the The Eurasian Economic Union contradictions were excluded, of the Union to ensure freedom as well as policies in the spheres Member States of the CU and CES, We expect to see the following (EAEU) is an integration existing rules were optimized and of movement of goods, services, of economics, such as financial and also the cutting edge global results of the agreed (coordinated) association created to ensure updated, gaps were filled, and a capital and labour. Provisions markets, security and protection of experiences in these fields. policy on agriculture: creation of economic interests of all its single conceptual framework was of the contractual and legal intellectual property. transparent conditions for bilateral members. formed. The Treaty included rules framework of the CU and the CES A draft Programme of the Common trade, increase of self-sufficiency of and regulations of the EurAsEC were brought into conformity with The leaders of Belarus, Kazakhstan Economic Space Transport policy the common agricultural product The Treaty on Establishment of that meet the goals and objectives the WTO rules and regulations. and Russia approved the first for the period up to 2020, a draft and food market based on the the Eurasian Economic Union programme document in the field Strategy of the Common Electricity coordinated development of its was signed on May 29, 2014 at a of macroeconomic policy — Main Market, a draft Methodology of national segments, as well as session of the Supreme Eurasian Guidelines of Macroeconomic Forming indicative balances of strengthening export potential of Economic Council in Astana and Policy of the Member States of the energy sources of the Member agroindustrial complex. entered into force on January 1, Customs Union and the Common States of the CU and CES were 2015. The Treaty on the Union is a Economic Space for 2013—2014. developed. Supra-national coordination legal and regulatory basis for the The document was prepared conducted by the Commission functioning of the EAEU. This is a based on the analysis of the social Forming of a coordinated (agreed) on the basis of interaction with single core document developed and economic development of transport policy of the CU and the authorized authorities of the by taking into account the best these states, their main external CES member states will unlock the member states of the CU and international practices. risks and internal confinements transport and logistics potential of the CES contributed at this stage in order to ensure sustainable Belarus, Kazakhstan and Russia. to stimulation of the agricultural The document containing nearly economic growth. It identified key Conducting a coordinated (agreed) product markets development. It 1000 pages is divided into four targets of macroeconomic policy will ensure a steady was a question of maintaining a parts that include 28 sections, of the Member States in the short growth of the national economies level playing field in production of 118 articles and 32 annexes. term. These included support of and energy security of the states, and trade in agro-food products, in In developing the Treaty on the the macro economic resilience, protect the interests of consumers the use of resources of agricultural EAEU, the work on systematization creation of conditions for consistent and producers of energy production to improve the income of international treaties concluded economic growth by a deeper resources. It also aims to increase of producers, the availability of food within the framework of the cooperation in the real economy the economic efficiency and for consumers. CU and SES was conducted:

24 25 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

In addition, in accordance with access to services of natural adoption of common rules in the the provisions of the Treaty, 31 entities in the electricity field of their circulation, etc. Unified exemptions revealed in the areas sector is expected to be completed registers of registered medicines of industrial policy, as well as by 2019, common gas, oil and oil and medical products are being those related to sanitary, veterinary product markets — by 2025. formed, good development, and sanitary and quarantine research, manufacturing and phytosanitary measures, will The Treaty establishes the general distribution practices, as well as be eliminated during different principles of technical regulations. medicines and medical products transitional periods. Among them — establishment safety control practices are being of mandatory requirements for introduced. Common markets will The Treaty on the EAEU defines products and related processes operate based on the decisions the legal basis of a single market of (from design and manufacture to of the Commission establishing services. The most important basis disposal). Such requirements are common rules for registration, is release of their provider from prescribed in technical regulations rules for conducting studies re-establishment as a legal entity. of the EAEU. By October 2016, (tests), as well as other rules and Now, it is able to provide services a list of the technical regulations requirements governing individual on the basis of a permit issued in adopted in the Eurasian Economic stages of circulation of medicines the country where the provider is Union included 36 documents and medical products. registered. Professional qualification already, 34 of which came into of employees of the service force. By this very time the number The EAEU Customs Code provider shall also be recognized. of standards contained in the lists is a unified set of rules The conditions for their provision to the technical regulations of the for execution of foreign The Treaty on the EAEU is based legal personality. Previously, the regulation and developing the by the provider personnel of one Union was 8000. economic activity in the on codification of the contractual Customs Union and the Common institutional measures to improve Member State to service recipients Union, a progressive and legal framework of the Economic Space functioned within the business climate, it is extremely in another country of the Union are The Treaty defines the regulation document promoting Customs Union and the Common the institutional framework of the important for the new internal also being created — the Treaty mode for medicines and medical simplification of customs Economic Space (68 international Eurasian Economic Community procedure of assessing the enshrines guarantees for their products circulation in the Union. formalities and, as a treaties), as well as supplemented (EurAsEC) only. Thus, the Eurasian regulatory impact of draft decisions recipients. It is planned that common consequence, improvement with new topics of the integration Economic Union is becoming a by the Eurasian Economic markets of medicines and of the business climate. “construction”. significant element of the global Commission that might affect the The leaders of the Union countries medical products will be created economic architecture. The Treaty environment of entrepreneurial agreed to conduct a coordinated in 2016. These are new areas of The document is aimed at The Treaty contributes to free stipulates that the Union has activity to be fixed in the Treaty on policy in the field of energy and integration cooperation of the electronic data processing and use movement of goods, services, the right to perform, within its the EAEU. to establish common markets Union countries. They are based of modern software and hardware capital and labour, a coordinated, jurisdiction, international activities for electric power, gas, oil and on a set of important principles, at all stages — from submission of agreed or common policy in the aimed at addressing the challenges The Principle of four “freedoms” oil products. The Treaty on the including harmonization and the declaration to release of goods. economic sectors stipulated in the faced by the Union. The Union can as a fundamental market principle EAEU provides for this task to be unification of the requirements of It will significantly save business Treaty and international agreements cooperate with states, international enshrined the refusal to apply implemented in several stages national legislations; ensuring the resources, speed up the process of within the Union. organisations and international safeguard measures for domestic and finally performed by 2025: unity of mandatory requirements customs clearance procedures and integration associations. Jointly with market in mutual trade. Completion establishment of a common energy for quality, efficiency and safety of minimize contacts of foreign trade The Eurasian Economic Union the Member States, the Union can of the formation of the single market of the Union and ensuring medicines and medical products; operators with officials. was founded on the principles of also conclude international treaties goods, services, capital and international law which, among with the above organisations on any labour market is the purpose of the others, include a principle of matters within its jurisdiction. Eurasian integration at this stage, sovereign equality of the member which is characterized by a deeper states, respect to the specifics of Rules on the correlation of the integration as compared to the the political set-up of the members Treaty on the EAEU with other Customs Union and the Common to the association, ensuring the international agreements, on its Economic Space. mutual benefit in the cooperation, registration in the UN Secretariat, observing the provisions on the accession to the The Union countries defined principles and its functioning (as Treaty and withdrawal from it, as the directions of deepening the a rule) without exemptions and well as provisions on observers at integration. For example, the restrictions. the Union were adopted. Treaty on the EAEU provides for elimination, from January 1, The Union is an international From the point of increasing the 2015, of 29 revealed exemptions, organisation of regional economic level of transparency, balance barriers and restrictions, mainly integration and has international and quality of the supranational in .

26 27 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

industrial policy implemented macroeconomic policy include under an employment contract, but in the Union is focused on joint formation of the common principles also under a civil law contract. In development by the Member States of functioning of the economy addition, no restrictions established of new types of export-oriented of the Member States, providing by the legislation of the Member products, including by deepening their effective cooperation, States in order to protect the cooperation, increasing localization development of common principles national labour market are applied. of production and promoting and guidelines for the prediction of import substitution; creation of new socio-economic development of The issues of direct recognition production chains and innovative the parties. of education and qualification industrial sectors; production certificates without any additional modernization in traditional The Treaty enshrines the principles procedures and the procedure for industries; building-up jointly for formation and communication recognition of academic degrees manufactured high-tech products of official statistical information and ranks have been formalized. export. For these purposes, of the Union. In addition, the the Treaty provides for and has Treaty provides for vesting the Currently the Commission in already implemented tools and Commission with the powers, such cooperation with the competent mechanisms, such as the Eurasian as development and approval of the authorities of the Member States technology platforms, the Eurasian methodology for compiling official is actively working on a Contract Subcontracting Network and the statistical information of the Union on Pension Provision of Workers Eurasian Technology Transfer on the basis of the official data of the Member States. After its Network. from the Member States, as well as signing, the Union citizens will be elaboration in cooperation with their able to receive pensions for the In 2016, a large-scale work on the of an agreed agroindustrial In accordance with the Treaty on The effective functioning of the authorised authorities and adoption period of their employment from the draft Customs Code of the EAEU policy. Forecasting in the the EAEU, this activity involves EAEU is impossible to imagine of the integration development Member State, where they worked. is to be completed, which was agroindustrial complex, state development of measures without conducting the coordinated program in statistics sector. All the pension rights acquired in conducted by the Commission and support for agriculture, regulation and mechanisms of interstate macroeconomic policy, which the Union Member States shall be public authorities together with the of the common agricultural cooperation to deepen integration provides for the development and The Treaty brings the countries of considered in assigning and paying business community of the Union market, uniform requirements processes and the sustainable implementation of joint actions of the Union to a qualitatively new the pension. countries. The EAEU CC is one of for product manufacture and development of agroindustrial the EAEU Member States in order level of cooperation in the field of the key documents constituting the circulation, development of complex. to achieve balanced economic labour migration. In order to expand The rule for provision of full scope legal basis of the Union. The Treaty agricultural products and development. The Treaty on the the possibilities for employment, of social insurance for employees of the Union stipulates that the food exports, scientific and With regard to industrial policy, the EAEU stipulates that the main citizens of the Member States have and their family members that are union should have unified customs innovative development of the Treaty substantially expands the directions of the coordinated an opportunity to work not only implemented under the same regulation under the EAEU CC and agroindustrial complex, as well contractual and legal framework international treaties covering the as integrated information support of the CU and the CES, which scope of the customs regulation. for agroindustrial complex are regulated only issues of industrial main directions of the agreed subsidies. Goals, objectives, The Treaty on the EAEU defines (coordinated) agroindustrial policy. principles and mechanisms main priorities of transport policy of industrial cooperation in within the territory of the Eurasian It is important that the the Union have been defined. Economic Union in the long term. implementation of policies in other It is also provided that when The parties agreed on stepwise areas of integration cooperation, developing and implementing liberalization of transportation including sanitary, phytosanitary and policies in trade, customs tariff in the field of road, rail, air and veterinary and sanitary measures cooperation, competition, technical water transport. The Member in respect of agricultural products, regulations, business development, States will conduct coordinated be carried out taking into account transportation and infrastructure, (agreed) transport policy aimed the objectives, tasks and directions in state procurement and other at ensuring economic integration of the agreed agroindustrial policy. spheres, the interests of industrial and introduction of the common It is aimed at efficient use of development of the Member States transport space. resources of the Union countries shall be taken into account. to produce competitive products, An agreement was reached on to meet the needs of the common In accordance with the Main formation and implementation agricultural market, to reduce import Directions of Industrial Cooperation by the Member States under dependence and to increase export within the EAEU adopted by the coordination of the EEC potential. the Heads of Governments, the

28 29 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

citizens of the Member States and The main management The judicial branch is represented Eurasian Economic Union is the other people who live there enjoy the bodies of the EEC are the by the Court of the Union. Before second example of an economic same legal protection of consumer Council and the Board creation of an independent union in the world practice after the rights as the citizens of these states. of the Commission. The judicial authority, issues of dispute European Union. Council consists of one resolution in the framework of the Apart from the content of industry, Vice Prime Minister of each Customs Union were settled in the Thus, on January 1, 2015 a in the development of the Treaty party, decisions are taken EurAsEC Court. The purpose of the new stage of development on the EAEU the tasks of creating by consensus. In the Board, Court of the EAEU is to ensure the of the Eurasian economic the institutional framework of the each state is represented by uniform application by the Member integration has begun. Eurasian Economic Union were two members, decisions are States of international treaties Launching the fully present. The Treaty lays down the taken by a qualified majority in the framework of agreements functioning Eurasian structure of permanent bodies of or by consensus. concluded with third parties, and Economic Union represents the Union. The Union management decisions taken by the Union not only fixation of a de facto bodies system is based on a The Commission’s decisions have a bodies. The headquarters of the deeper level of economic collective form of decision-making. direct effect on the territories of the EAEU Court is located in Minsk. integration within the Eurasian The main body of the Union is Member States of the Union. They space in comparison with the the Supreme Eurasian Economic do not require additional approval In 2015, the Republic of Armenia stages of the Customs Union Council (SEEC), which is composed at the national level. and the Kyrgyz Republic, which and the Common Economic of the Heads of the Member led the preparatory work since Space, but also assertion States. SEEC sessions are held at The Commission has broad powers 2012, accessed to the Treaty on of legitimate strategy for conditions and in the same manner competition in mutual trade in least once a year. The Supreme necessary for the implementation of the Union. In terms of the content the further integration as for the citizens of the state of goods and services. Council determines the strategy, the Treaty on the Union. and the degree of integration the development. employment is of great importance. directions and prospects for the In addition, employees and their As regards the government formation and development of the family members have the right to (municipal) procurement, the Union and makes decisions aimed receive free emergency medical Treaty, maintaining the provisions at implementing its objectives. At care and rescue emergency care in of the contractual and legal least twice a year the Eurasian their territories in accordance with framework of the CU and the CES Intergovernmental Council (EIC) at the same procedure and under the on equal national treatment, clearly the level of Heads of Government is same conditions as to the nationals establishes that this treatment is summoned. At the proposal of the of the state of employment. available to the Member States. EEC Council, the Council considers At the same time, the Union will any issues for which no consensus Following the stepwise expand the number of methods was reached during decision- harmonization of the legislation, of procurement. In particular, making in the Council session. the Members States agreed the request for proposals will be to establish the common introduced. It gives the possibility The permanent supranational supranational authority on financial to select the best proposal not only regulatory body of the Eurasian market regulation by 2025 in order by , but also by other criteria: Economic Union is the Eurasian to ensure agreed regulation of for example, the time period of Economic Commission. It is a kind financial markets. work execution, quality of works of a supra-national government, with (qualification of bidders). its headquarters in Moscow, where In respect of taxes and taxation, national authorities have transferred it is provided that the Member For the first time, the parties started some of their powers. The States of the Union define areas to pursue an agreed policy in the Commission acts in the interests of of cooperation in the tax policy for Union in respect of consumer no particular state, but combines harmonization and improvement protection. Previously, the and coordinates the interests of all of tax legislation, including the contractual and legal framework of the Member States of the Union, mechanism for collection of indirect the CU and the CES did not include as the taxes in performance of works, such provisions. The Treaty on the in Brussels. However, the basic rendering services, convergence EAEU stipulated that this policy is principle of operation is different of rates on the most sensitive aimed at creating equal conditions from the European one — the EEC excisable goods. The principle of for citizens of the Member States provides for the principle of equality non-discrimination lies at the heart to protect their interests against of the Member States, irrespective of the arrangements. It will make unfair activity of business entities of of , territory and it possible to prevent unfair price the Union. It was determined that population.

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Institutions of Eurasian Economic Integration

THE COURT OF THE EURASIAN ECONOMIC UNION IS A PERMANENT JUDICIAL BODY In 2012—2015, effective institutional framework of OF THE EURASIAN ECONOMIC the Eurasian economic integration was formed: The UNION Eurasian Economic Commission with its headquarters in Moscow, the Court of the Eurasian Economic Union located in Minsk. By 2025, it was DATE OF STARTING OPERATION decided to establish a financial regulator that will be January 1, 2015 located in . PLACE OF LOCATION Minsk (the Republic of Belarus)

OPERATED BASED ON: THE EURASIAN ECONOMIC • the Treaty on the Eurasian Economic Union COMMISSION (EEC) IS A • the Statute of the Court of the Eurasian Economic PERMANENT SUPRANATIONAL EEC Union REGULATORY BODY OF THE The purpose of the Court’s activity shall be to ensure, EURASIAN ECONOMIC UNION in accordance with the provisions of the Statute, the uniform application by the Member States and the Union Bodies of the Treaty, international treaties in the DATE OF STARTING OPERATION framework of the Union, international treaties of the 2 February 2012 Union with Third Parties and decisions of the Union Bodies. PLACE OF LOCATION The Court shall include two judges from each Member Moscow (the Russian Federation) State, the term of office for each of them is nine years. The first-ever body of this kind in the history of the The Chairman of the Court and the Vice-Chairman shall Eurasian economic integration process be elected to their positions from among the judges of the Court by Court judges in accordance with the Rules OPERATED BASED ON: subject to approval by the Supreme Eurasian Economic • Annex No. 1 to the Treaty on the EAEU Council. • Regulations on the Eurasian Economic Commission The Chairman of the Court and the Vice-Chairman may not be nationals of the same Member State. MAIN OBJECTIVES OF THE COMMISSION Status, composition, competence, procedure for enabling conditions for operation and development of formation and functioning of the Union Court shall be the Union, as well as developing proposals in the area of determined by the Statute of the Court of the Eurasian economic integration within the Union. Economic Union in accordance with Annex No. 2 to the THE FINANCIAL REGULATOR Treaty on the EAEU. THE COMMISSION SHALL CARRY OUT ITS OF THE EURASIAN ACTIVITIES BASED ON THE FOLLOWING The Court shall consider disputes arising from the ECONOMIC UNION PRINCIPLES: implementation of the Treaty, international treaties within the Union and (or) the Union Bodies’ decisions, • ensuring mutual benefit, equality and respect for the upon a request of a Member State or upon a request national interests of the Member States; DATE OF STARTING OPERATION of a business entity (Annex No. 2 to the Treaty on the • economic justification of the decisions adopted; Creation of the EAEU Financial Regulator is scheduled Eurasian Economic Union, the Statute of the Court of • openness, transparency and objectivity (Annex No. 1 for 2025 the Eurasian Economic Union). to the Treaty on the EAEU, the Statute on the Eurasian The procedure of taking the oath by the judges - Economic Commission). PLACE OF LOCATION February 10, 2015. The place of location of Financial Regulator shall be Chairman of the EAEU Court since 2015 - Alexander Almaty (the Republic of Kazakhstan) Fedortsov (Republic of Belarus).

32 33 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Eurasian Economic Commission Facts and Figures

Management Bodies of the Eurasian Economic Union

THE SUPREME President President President President President EURASIAN ECONOMIC of the Republic of the Republic of the Republic of the Kyrgyz of the Russian COUNCIL of Armenia of Belarus of Kazakhstan Republic Federation

Serzh Alexander Nursultan Almazbek Vladimir Sargsyan Lukashenko Nazarbayev Atambayev Putin

THE EURASIAN Prime Minister Prime Minister Prime Minister Prime Minister Prime Minister INTERGOVERNMENTAL of the Republic of the Republic of the Republic of the Kyrgyz of the Russian COUNCIL of Armenia of Belarus of Kazakhstan Republic Federation

Karen Andrei Bakytzhan Sooronbay Dmitry Karapetyan Kobyakov Sagintayev Zheenbekov Medvedev

THE EURASIAN Vice Prime First Deputy Vice First Deputy Vice Prime First Deputy ECONOMIC Minister, President Prime Minister Minister Prime Minister COMMISSION COUNCIL the Minister of the Republic of the Republic of the Kyrgyz of the Russian of International of Belarus of Kazakhstan Republic Federation economic Integration Vasily Askar Oleg Igor and Reforms Matyushevskiy Mamin Pankratov Shuvalov of the Republic of Armenia

Vache Gabrielyan

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THE BOARD OF THE EURASIAN ECONOMIC COMMISSION

TIGRAN TATYANA TIMUR SERGEY NURLAN VERONIKA VALERY MUKAY ADAMKUL KARINE SARGSYAN VALOVAYA SULEYMENOV SIDORSKIY ALDABERGENOV NIKISHINA KORESHKOV KADYRKULOV ZHUNUSOV MINASYAN

CHAIRMAN OF THE MEMBER OF THE MEMBER OF THE BOARD — MEMBER OF THE MEMBER OF THE MEMBER OF THE MEMBER OF THE MEMBER OF THE MEMBER OF THE MEMBER OF THE BOARD OF THE BOARD — MINISTER IN MINISTER IN CHARGE OF BOARD — MINISTER IN BOARD — MINISTER IN BOARD — MINISTER IN BOARD — MINISTER BOARD — MINISTER IN BOARD — MINISTER IN BOARD — MINISTER IN EURASIAN ECONOMIC CHARGE OF INTEGRATION ECONOMY AND FINANCIAL CHARGE OF INDUSTRY CHARGE OF CHARGE OF TRADE IN CHARGE OF CHARGE OF CUSTOMS CHARGE OF ENERGY AND CHARGE OF INTERNAL COMMISSION AND MACROECONOMICS POLICY AND AGRICULTURE COMPETITION AND TECHNICAL COOPERATION INFRASTRUCTURE MARKETS, ANTITRUST REGULATION REGULATION INFORMATION SUPPORT, INFORMATION & COMMUNICATION TECHNOLOGIES

The Organizational The Integration The Financial Policy The Industrial The Antitrust Tariff and Non-tariff The Technical Department of The Transport and The Information Support and Protocol Development Department Policy Department Regulation Customs Regulation Regulation and Customs Legislation Infrastructure Technologies Department Department Department Department Department Accreditation and Law Enforcement Department Business The Agricultural Department Practice The Domestic The Finance The Macroeconomic Development Policy Department The Competition Department for Internal The Energy Markets Operation Department Policy Department and Public Procurement Market Defence The Sanitary, The Customs Department Department Department Policy Department Phytosanitary and Infrastructure The Legal Department The Labour Migration The Trade Policy Veterinary Measures Department The Statistics and Social Security Department Department The Administrative Department Department Department THE EEC DEPARTMENTS THE EEC BOARD

The Advisory Committee The Advisory Committee for The Advisory The Advisory Committee The Advisory The Advisory Committee The Advisory Committee The Advisory The Advisory for Statistics Migration Policy Committee for Competition and Trade Committee for Technical Regulation, for Customs Regulation Committee Committee for for Industry Antimonopoly Sanitary, Veterinary and for Oil and Gas Information Support, The Advisory Committee The Advisory Committee for Regulation, Price Application of The Advisory Committee Information and for Macroeconomic Tax Policy and Tax The Advisory Controls and Phytosanitary Measures for the Interaction of The Advisory Communication Policy Administration Committee for Governmental Regulatory Bodies at the Committee Technologies and Agriculture (Municipal) Procurement The Advisory Committee Customs Border of the for Electric Power Information Security The Advisory Committee for for Consumer Rights Customs Union Intellectual Property The Advisory Committee for Transport and The Advisory Committee for Infrastructure Entrepreneurship The Advisory Committee The Advisory Committee for for Natural Monopolies Financial Markets

The Advisory Committee for Social Security, Compliance with Pension Rights, Health Care Provision and Professional Activities of Working Population of the EAEU Member States THE ADVISORY BODIES UNDER THE EEC BOARD 36 37 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

Member of the Board — Minister in charge of Integration Activity areas of the Eurasian and Macroeconomics Economic Commission Tatyana Valovaya

Key Trends between the EAEU and the Silk May 29, 2014, at the supranational in Integration Road Economic Belt project, level an agreed macroeconomic cooperation between the EAEU policy is conducted. The Eurasian Economic Union and the SCO, establishment of Chairman of the Board was created with the purpose contacts between the EEC with Coordination of macroeconomic Tigran Sargsyan of forming and developing a the European Commission; policy is due to creation in the common Eurasian economic EAEU of the common economic • international positioning of the space — that is, for the effective space, i.e., a common market EAEU and promotion of objective implementation of the tangible for goods, services, labour perception of the Union in the The Chairman of the Commission benefits created by the freedom and capital, where national international community; Board shall organise the activities of movement of goods, services, borders do not play a significant of the Board of the Commission capital and labour in the territory • analysis of possibilities role in economic terms any and bear responsibility for the that is much larger than each of deepening integration more. Due to the fact that the exercise of its functions. The individual country, which became cooperation of the member economy is mainly regulated at Chairman of the Board of the a member of the Union. states. the national level, through an Commission shall be appointed agreed macroeconomic policy, by the Supreme Council for a term Further deepening of economic Work in order to improve the problems related to compatibility of 4 years on a rotational basis, integration in the Union is the main provisions of the Treaty on the of integration goals of the Union without the right of prolongation. activity of the Eurasian Economic EAEU is carried out within the and national development Commission. respective Consolidated Working objectives of the Member States, Group with participation of rise of “competition of policies” The Integration Development plenipotentiary representatives of and maintenance of economic Department carries out this work in the Member States and the EEC. sustainability of the union as a several areas. First of all, it is: whole are being solved. On the outer track, the activities • improvement of the rules of the are carried out in several formats. The Treaty on the Union identified Treaty on the EAEU of May 29, These include creation of free trade the following elements of an agreed 2014 and development of the areas; development, execution and macroeconomic policy of the Union law; implementation of international Member States. • implementation of Main treaties and memorandums; Directions for International cooperation with third countries, 1. Compliance by the Member Activities of the EAEU and international and States with quantitative values elaboration of the proposals integration associations; image- of indicators that determine the for the Union external relations building activities. sustainability of their economic development; development (included in the Treaty on the Union): the annual • analysis of prospects and abilities Macroeconomics consolidated budget deficit of the for inter-regional cooperation public government sector; the expansion, including under In accordance with the Treaty on public government sector debt; the the initiative of conjugation the Eurasian Economic Union of rate of . of integration development 38 39 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

Member of the Board — The Eurasian Economic defining the goals, objectives the agreed interval quantitative Minister in charge of Customs Cooperation Commission together with the of economic development of values of external parameters. Member States are empowered the Union, directions, where Mukay Kadyrkulov to take measures aimed at cooperation could have a positive Statistics stabilizing the economic situation impact on the competitiveness of and ensuring compliance the Member States, as well as the Operational and open access to with the quantitative values of criteria for determining areas of statistical data is one of the factors macroeconomic indicators. the economy that have potential contributing to increasing the for integration. Implementation of competitiveness of the economies 2. Consideration by the Member the Main Directions for Economic of the EAEU countries, and States of the Main Guidelines of Development must ensure that improving the investment climate in the macroeconomic policy. This each Member State gets an the Eurasian Economic Space. The document identifies the most additional economic benefit and Commission’s activities in statistics important challenges for the accelerate (simplify) achieving contribute to the openness of Customs Cooperation areas of work of the customs • cooperation with the World Union’s economy in the short and national strategic goals by the integration processes in their unit of the Eurasian Economic Customs and medium term. effects of “”, effect of statistical measurement. The An important factor in the Commission may be specified: other international specialized “economies of scale”, “synergy”, “a Commission is working to support sustainable development of the institutions; study and analysis of • development and improvement 3. Consideration by the Member common market”, etc. the integration process with diverse Eurasian Economic Union is the global best practices, advanced of the EAEU customs legislation, States of the Main Direction and timely statistical information effective foreign economic activity. international developments and ensuring a uniform practice for Economic Development 4. Formation by the Member and analytic materials on the socio- Creating favourable conditions aimed at the simplification of of its application; of the Union until 2030. It is a States of forecasts for social and economic development of the for the business environment and customs rules and procedures comprehensive strategy document economic development based on EAEU Member States. entrepreneurial activity, customs • development of advanced in execution of foreign economic regulation is one of the factors technologies within the activity; stimulating economic development of common customs territory of the EAEU countries. Thus, the main the Union, such as the “single • ensure cooperation between the long-term goal is to create simple and window” mechanism in the EEC and business associations effective mechanisms of customs system of foreign economic of the EAEU Member States in administration for entrepreneurs. The activity regulation of the EAEU the framework of the Advisory measures developed and undertaken Member States, the institute Committee for Customs are aimed at creating equal of authorized economic Regulation and the Advisory competitive conditions for carrying operator, foreign trade operators Committee for Regulatory out foreign economic activities identification systems, etc.; Authorities Cooperation at the throughout the Union. customs border of the EAEU; • development and improvement of customs information • negotiations with the People’s The competence of the technologies and common Republic of China on Commission’s customs unit processes within the EAEU, arrangement of information includes a wide range of issues of providing for information exchange between customs customs regulations. It includes exchange between customs and authorities; various aspects of the legal other government bodies, as well regulation of relations connected • maintenance of the environment as with foreign trade operators; with the movement of goods across for operation, development, the customs border of the Union, • reengineering of the traditional and elaboration of common their transportation within the practices of execution and approaches to placement, EAEU under the customs control, regulation of foreign economic construction, reconstruction, temporary storage, customs activity on the territory of the maintenance and technical declaration, release and use in EAEU through the transition equipping of places of goods accordance with the customs to electronic communication, movement through the EAEU procedures, conduct of customs development and implementation customs border, free (special) control, customs payments. of structures and formats of economic areas, temporary electronic documents and data in storage warehouses, bonded At this stage of integration relations electronic form used for customs warehouses, free shops, development, the following priority purposes; office buildings.

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Member of the Board — Member of the Board — Minister in charge of Trade Minister in charge of Technical Regulation Veronika Nikishina Valery Koreshkov

Trade lowering the customs duties were launched — also on the basis Technical regulation aimed at the implementation and epidemiological welfare, on components, raw materials, of a free . of such requirements; in the quarantine phytosanitary and Today, the efforts of regulators in equipment. Conclusion of free The task of the area is to create a field of assessment of products veterinary&sanitary safety of the field of trade should be focused trade agreements also facilitates In the autumn of 2016, the first modern regulatory framework in for compliance with technical the EAEU territory, scientific on creating conditions for export achieving this goal. round of negotiations on the the field of technical regulation, to regulations of the Eurasian substantiation of SPV measures expansion, inclusion of domestic Agreement on Trade and Economic form the appropriate conditions Economic Union. application, weighted assessment products in the global value chains The Commission continues to work Cooperation between the Eurasian for ensuring the safety of of risks, compliance with the and formation of own production on the application of reasonable Economic Union and the People’s products in the EAEU Member The objectives of development proportionality of restrictive chains. Through incentive of export- and adequate measures to protect Republic of China will be held. Work States’ markets and increasing and adoption of technical measures and removal of oriented production, competitive at the domestic market and combat on conjugation of the Eurasian business competitiveness regulations are assurance within unjustified administrative barriers to the international product markets, anti-competitive practices of trade Economic Union and the Silk Road and living standards of the the common customs territory of trade. These issues are addressed the set task of import substitution partners from third countries. Economic Belt is in progress. Member States’ population. the protection of life and health of in the framework of the main without technological conservation The technical regulation is the people, property, environment, life tasks of the area, among them is is also solved. For the purpose of increasing The Commission is also basis for providing the safety and health of animals and plants, assurance of the formation of an the access to markets of third studying the possibilities of of product throughout their life prevention of actions misleading agreed policy of the Member States Accordingly, the trading unit of countries the Commission’s efforts concluding economic partnership cycle. The mechanisms laid consumers, and assurance of in application of SPV measures, the Eurasian Commission faces a are focused on the development agreements intended for creation down in it allow eliminating many energy efficiency and cost-effective sanitary and epidemiological number of challenges: increasing of trade regimes with priority of preconditions for a deeper barriers to trade, thus ensuring use of resources. welfare of the population, protection the competitiveness of the EAEU partners. integration. freedom of movement of goods. of the common customs territory goods, facilitating access to the Problems of technical regulation from introduction and spread of markets of third countries, forming A network of free trade agreements The Commission prepares a within the EAEU lie in three Sanitary, quarantine objects and epizootic joint policies and practices to is being created. The Agreement package of measures to promote interrelated planes covering legal Phytosanitary and well-being of the customs territory, promote goods of the EAEU. on Free Trade Area (FTA) with exports within the Treaty on the regulation of relations in the field Veterinary Measures taking into account harmonization Vietnam entered into force on EAEU, which will be used in of establishing, application and with international standards, To improve the competitiveness October 5. In October 2015, conjunction with the countries of the implementation of mandatory (SPV Measures) guidelines or recommendations. of products of the Union Member based on the report of the Joint Union. It is necessary to establish requirements for products and Such a policy results in creation States, it is important to ensure Research Group, it was decided mechanisms for joint insurance and production processes, installation, The main issues covered by the of optimal conditions for free the efficiency of production, the to launch negotiations on FTA crediting of export, to support and commissioning, operation, Eurasian Economic Commission circulation of goods that are availability of necessary raw with Israel. Joint research groups promote cooperation products of storage, transportation, marketing in the field of SPV measures are safe for life and health of human, materials and intermediate goods. continue their work to establish the EAEU, to conduct marketing and disposal; in the field of development of normative legal animal and plant, property and It is necessary to reduce costs of free trade areas with India, Egypt campaigns, to create a system of application of voluntary standards acts in order to ensure sanitary environment. manufacturers and the net cost of and Iran. The Joint Expert Group voluntary certification. finished products, and to stimulate conducts research for prospects the development of technologies of development of trade and In addition, the Commission is in the EAEU, support exports economic cooperation between constantly monitoring restrictive and international cooperation. the Union countries and the measures against goods of the Therefore, the Commission is Republic of Korea. Consultations EAEU countries by third countries, constantly working on “fine-tuning” on unification of the trade regime and from 2015 it is also working to of the customs tariff, for example, of the Eurasian Union with eliminate them.

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Member of the Board — Member of the Board — Minister in charge of Energy Minister in charge of Industry and Infrastructure and Agriculture Adamkul Zhunusov Sergey Sidorskiy

Energy developing the fuel and energy security, reliability, availability Manufacturing products, including by deepening reducing import dependence and complex. Therefore, conducting an and sustainability. First of all, Industry cooperation and increasing increasing export potential. The main task of the area is coordinated energy policy of the this implies creating a common localization of production; creation conducting a coordinated energy Eurasian Economic Union countries transportation service market, All industrial policies within of new production chains and In accordance with the Treaty on policy of the Eurasian Economic aimed at creating common electric taking agreed measures to ensure the EAEU shall be aimed at innovative industrial sectors; the EAEU, this activity involves Union Member States for the energy, gas, oil and oil product mutual advantages in transport accelerating and improving production modernization in development of measures efficient use of the aggregate markets is identified as one of and infrastructure, implementation the sustainability of industrial traditional industries; building-up and mechanisms of interstate energy potential and the creation the most important directions of of best practices, integration of development, improving the high-tech products export. cooperation to deepen integration of common energy markets. activities of the Union. transport systems of the Union competitiveness of industrial processes and the sustainable Implementation of this task will countries in the world transport systems of the Member States, Within the Union, cooperation development of agroindustrial provide energy security and system, efficient use of the transit implementation of effective is developing in priority sectors; complex. sustainable growth of the national Transport potential of the Member States, cooperation aimed at increasing a business and innovation economies of the Member States, and Infrastructure improving the quality of transport innovation activity, and elimination infrastructure is being formed, For this purpose, joint forecasts balance the interests of consumers services, provision of transport of barriers in the industrial sector, including technological platforms, of the agroindustrial complex and producers of energy, improve The main goal of the area is (technological) security. With including with respect to the engineering centres; conditions development, economic efficiency and reliability formation of a coordinated (agreed) , the volume of traffic movement of industrial goods of for fair competition are being for the main types of agricultural of fuel and energy complexes, transport policy of the Member between countries is growing the Member States. developed, interstate programs products are formed, actions optimize the use of primary energy States of the Eurasian Economic providing new opportunities for the and projects are being developed on state support of agriculture, resources and expand non- Union aimed at ensuring economic Union for implementation of the total Industrial policy within the and implemented, a network removal of barriers in mutual resource export potential. Long- integration, consistent and gradual transit capacity, creating a land link Union is formed by the Member of industrial cooperation trade are coordinated, common term stable development of the formation of a common transport between and Asia. The use States in the main directions of and subcontracting is being requirements for the production economies of the Union Countries space based on the principles of synergies in this area is one of the industrial cooperation and carried implemented, a system of and circulation of agricultural is impossible without constantly of competition, transparency, main advantages of integration. out by them with the advisory transfer of technology is being products and food are elaborated, support and coordination of the established. mechanisms for technology transfer Commission. The objectives, and scientific and innovative principles and instruments of cooperation are developed. industrial policy, as well as the Agroindustrial competence of the States and the Conducting an agreed Commission are defined in section Complex agroindustrial policy provides XXIV “Industry” of the Treaty on the establishment of an all-Union EAEU. In the agroindustrial sector, the system of sectoral priorities, Member States, with coordination formation of chains of cooperation In accordance with the Main of the EEC, conduct an agreed consistent with national Directions of Industrial Cooperation agroindustrial policy aimed at expertise and resource security, within the EAEU adopted by effective implementation of the strengthening food security in the Heads of Governments, the resource potential of the Union the EAEU and strengthening the industrial policy implemented countries with the purpose of position of the States and raising in the Union is focused on joint producing competitive products, the states and the Union in general development by the Member States meeting demands of the in the global market of agricultural of new types of export-oriented common agricultural market, products.

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Member of the Board — Member of the Board — Minister in charge of Competition Minister in charge of Economy and Antitrust Regulation and Financial Policy Nurlan Aldabergenov Timur Suleymenov

Competition January 1, 2015 — the date of Currently, the Commission analyses Economy and capital. Establishment of the Implementation of a harmonized entry into force of the Treaty on the the markets for compliance of and Financial Policy common financial market of the policy in business and investment and antitrust Eurasian Economic Union — the their operators’ activities with the Member States will ensure the activities in the Member States with regulation EEC has been entitled to initiate general competition rules. The work The main long-term goal of the efficient allocation of capital, risk the participation of the business and examine cases of violation of on the study and implementation ECE in the field of economy diversification, increase competition community will eliminate excessive Competition, antitrust regulation the general rules of competition of fair rules of competition in the and finance policy is to create in the financial market, remove administrative barriers, improve and governmental procurement in cross-border markets, impose pharmaceutical market, the markets favourable business conditions barriers to mutual access and the quality of business regulations, regulation of the EEC is the fines against violators and issue for sales of new cars and socially in our countries, to minimize the ensure access of business to improve the business climate, foundation for an efficient economy, binding resolutions to eliminate important goods is of particular administrative barriers. After all, cheaper loans. including investment activities and incentive for innovation processes violations and their consequences. importance. it is the business that should be mutual trade in services in the and production of quality goods Decisions of the EEC, as well as the main driving force behind the Also our goals include introduction EAEU countries. in the Eurasian Economic Union. national competition authorities, Thus, in the field of antitrust integration of the economies of the of a common labour market. The boundaries of the EAEU are may be appealed in the Court of regulation, competition policy and Member States of the Eurasian To execute this goal we should The gradual introduction of the open to all its economic entities, the Eurasian Economic Union. public procurement the Eurasian Economic Union. develop a common policy in labour single services market within and therefore creation of a legal Economic Commission executes migration, including provision of the Union is also a priority for framework for trade and assurance Under the powers transferred, powers aimed at all social groups, In this regard, an important social security, health care for the Commission activity. The of equal competitive positions in currently, activities such as the and is based on agreed norms and strategic objective of the EEC for working people — citizens of the Treaty on the EAEU defines the product markets and governmental study of cross-border commodity rules of national laws. The main the long term is establishment of EAEU countries and their families in basic principles of liberalization procurement becomes the main markets, cooperation with national objective of the Eurasian integration a common market of the Eurasian other countries of the Union, export of trade in services, with a task. According to the Treaty antitrust authorities of the EAEU is to ensure equal conditions Economic Union, which will ensure of pensions and recognition of work gradual reduction of a number of on the EAEU, enforcement of countries, as well as competition and opportunities for the EAEU the freedom of movement of record gained in another state of limitations and exceptions, which competition rules and suppression advocacy, which includes Member States. This, in turn, is goods, services, investment and the Union. greatly expands the opportunities of violations in the Member conducting an open anti-monopoly a positive impetus for positive labour. In order to achieve this for business activities in our States are pursued by antitrust policy and raise of market economic development and objective it is necessary to build a Another important task of the countries. In the area of tax policy authorities of the states. In turn, the operators’ awareness, teaching increasing competitiveness of the common financial market, including Commission is to conduct a the work is being conducted for Eurasian Economic Commission them the principles and rules of EAEU Member States in the global the banking sector, the insurance coordinated policy in protection and creating tax conditions for fruitful suppresses such violations on law competition, become of the market. market and the securities market, enforcement of intellectual property non-discriminatory operation the cross-border markets. Since particular importance. since the close coordination of in certain respects within the whole of business within the common financial, monetary, fiscal and territory of the Eurasian Economic economic territory, removing monetary policies will form the Union. This will clearly increase all obstacles along the way. In prerequisites for implementation the attractiveness of the Member the foreground lies a planned of the principle of freedom of States for investors, especially in convergence of excise tax rates on movement of goods, services knowledge-intensive sectors. the most sensitive products

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Member of the Board — companies to become strategic co- information system and the cross- Minister in charge of Internal Markets, Informatisation, owners of digital assets, to generate border space of trust. Information Support, Information added value in the global digital Information & Communication Technologies and Communication cooperation, to be active participants However, in the framework of Karine Minasyan Technologies in the new digital markets. this collaboration of the Union countries, they have yet to The global economy is rapidly The challenges such as the determine the future of the being transformed into a new freedom to choose the jurisdiction ambitious image of the EAEU quality — a digital economy. Major of consumption and creation with digital capabilities projected economic players, countries and of added value by business for 2025-2030. To this end, work integration associations form and entities of the Union in third is needed to design joint mega implement their strategies for digital countries’ jurisdictions, traditional projects, to create new digital transformation, determine their asset depreciation, depletion of platforms in order to enter with ambitious goals in the global digital competences and drain of talent them global markets. It is also Internal Markets without barriers, exceptions and freedom of movement of goods, environment. led to a discussion of the basic necessary to identify and launch restrictions, as well as the priority of services, capital and labour without directions of the formation of the the priority directions on the In a situation of a global economic solving the tasks on establishment barriers, exceptions and limitations. In the foreground, there is an EAEU digital space. basis of breakthrough initiative turbulence, one of the main of the common/single markets led economy of creation and use of projects for digital transformation integration effects contributing to the adoption in December 2015 Adaptation of the EAEU realities data, digital processes, digitized This should give a new impetus of the economy affecting all the to the recovery and sustainable by the Presidents of the Member to the global best practices for images of physical objects that to the Eurasian integration project countries, and a significant part of development of the EAEU Member States of the decision to establish monitoring, assessment and become the basis for new forms and combine the efforts of the economic processes. An essential States economy, increased scale an appropriate new direction of the settlement of problematic issues of added value chains and Member States in the framework task remains the identification and effect, creation of the environment Commission. at the interstate level will allow relationships of business entities. of movement to the digital elaboration of joint standards for that encourages entrepreneurship, the Member States to use the transformation of the economies. accelerated agreed digitalization, competition and mutual trade, One of the main goals of this opportunity of the Commission Only a proactive stance will help formulation of standards for should be improvement of direction is to reduce a gap as an independent supranational the Union countries to save their Significant steps made in this operation of the EAEU digital conditions for functioning of the between the declared norms of body. With the effective mediation in the digital space, to direction include the projects for market and participation of small EAEU internal market. the Eurasian integration and the of the EEC, it is possible to achieve jointly formulate priorities and create formation of common processes, and medium-sized enterprises in it practice of the daily work of public goals and objectives specified an environment that will allow our creation of the EAEU integrated on common competitive conditions. The need to concentrate efforts on authorities and business entities in in the agenda of the Eurasian creating conditions for functioning the EAEU domestic markets based Economic Union to ensure effective of the internal market of the Union on the principle of four “freedoms”: functioning of the internal markets.

EXISTING DEFINITIONS

means an obstacle created by a Member State to free movement of goods, services, capital and labour within the framework of functioning of the Union internal market that does not comply with BARRIER the provisions of the Treaty, international treaties and instruments of the Union law, or that has signs of their violations.

means a provided exception (clause) on non-application by a member state of individual provi- sions of the Treaty, international treaties and instruments of the Union law that prevents or may EXEMPTION prevent free movement of goods, services, capital and labour within the framework of functioning of the Union internal market.

means an obstacle introduced by a Member State to free movement of goods, services, capital and labour within the framework of functioning of the Union internal market in case the EAEU law RESTRICTION allows introduction of the restriction by the national law of the Member State. It may also occur due to lack of proper legal regulation of economic relations in the Union law.

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Decision Making Process in the Eurasian Economic Union

* Domestic procedures (DP) ** Procedures of internal coordination (PIC)

THE SUPREME DP* EURASIAN THE MINISTRY ECONOMIC RATIFICATION OF FOREIGN COUNCIL AFFAIRS

THE EURASIAN INTERGOVERN- MENTAL COUNCIL GOVERNMENT

PIC** THE EURASIAN THE MINISTRY THE MINISTRY THE MINISTRY RELEVANT ECONOMIC OF JUSTICE OF FOREIGN OF ECONOMY MINISTRIES COMMISSION AFFAIRS

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Procedure for preparation and execution of international instruments

International Treaty

Keeping of the international treaty in the EEC. THE SUPREME EURASIAN Depository certified copy of the international treaty shall be sent to the Ministries of Foreign ECONOMIC COUNCIL Affairs of the EAEU countries for the internal legal procedures necessary for its entering into Authorised force authorities THE EURASIAN INTERGOVERNMENTAL COUNCIL

The draft document shall be sent for the THE EURASIAN ECONOMIC internal procedures required for its signing COMMISSION COUNCIL

RELEVANT SUBDIVISION OF THE EEC The draft document shall be sent to the parties for the Organization of the internal approval procedure decision making process of the Eurasian RELEVANT MEMBER OF THE BOARD — MINISTER OF Economic Commission Representatives of the authorised THE EEC authorities of the Parties SESSION OF THE EEC BOARD involves close, phased and coordinated interaction with the parties - relevant ministries and agencies of the Republic of Armenia, RELEVANT SUBDIVISION OF THE EEC the Republic of Belarus, the Republic Initiative of Kazakhstan, the Kyrgyz Republic and the Russian Federation.

It ensures the adoption of high-quality RELEVANT ADVISORY COMMITTEE developed and subsequently agreed decisions that take into account the interests and requirements of the RELEVANT MEMBER OF THE BOARD — MINISTER OF parties, as well as the best global THE EEC practices. RELEVANT SUBDIVISION OF THE EEC

THE EURASIAN ECONOMIC COMMISSION

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The procedure for preparation and execution of decisions and recommendations of the EEC, orders and decisions of the SEEC, the EIS and the EEC Council

A certified copy of the decision, recommendation, instruction shall be sent THE SUPREME EURASIAN to the Ministries of Foreign Affairs and the Governments of the parties ECONOMIC COUNCIL

Authorised authorities Decision, disposition and recommendation THE EURASIAN of the EEC Board INTERGOVERNMENTAL COUNCIL

A certified copy of the decision, recommendation, instruction shall be sent THE EURASIAN ECONOMIC to the Ministries of Foreign Affairs and the COMMISSION COUNCIL Governments of the parties

RELEVANT MEMBER OF THE BOARD — MINISTER OF Organization of the THE EEC decision making SESSION OF THE EEC BOARD process of the Eurasian Economic Commission Representatives of the authorised authorities of the Parties RELEVANT SUBDIVISION OF THE EEC involves close, phased and coordinated interaction with the parties - relevant ministries and agencies of the Republic of Armenia, the Republic of Belarus, the Republic Initiative RELEVANT ADVISORY COMMITTEE of Kazakhstan, the Kyrgyz Republic, and the Russian Federation.

It ensures the adoption of high-quality RELEVANT MEMBER OF THE BOARD — MINISTER OF developed and subsequently agreed THE EEC decisions that take into account the RELEVANT SUBDIVISION OF THE EEC interests and requirements of the parties, as well as the best global practices. THE EURASIAN ECONOMIC COMMISSION

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Interaction of the EEC with Business Community of the The EEC regularly interacts with the business Permanently working bodies of the Commission are Member States of the Eurasian community of the Eurasian Economic Union Advisory Committees, Subcommittees, Working countries in order to achieve greater transparency Groups and Expert Groups whose members include Economic Union of the Commission’s activity, and to ensure mutual officials and businessmen of the Union countries. benefit and equality. In turn, the strategic and systemic issues are The EEC has established mechanisms that allow discussed within the framework of the Advisory businesses to take part in the discussion of draft Council for Interaction between the EEC and the decisions of the Commission. Some decisions are EAEU Business Council. made at the initiative of enterprises; they are based on a consolidated position of the business of the Union countries.

Formats of Cooperation between the EEC and the EAEU Business Council

The Advisory Council for interaction between the EEC and the EAEU Business Council

The Advisory Council is a platform for the continuous The Advisory Council accumulates views and discussion of strategic and systemic issues related proposals of national and sectoral business to the development and functioning of the integration associations of the Union countries, aimed at association, with participation of business associations improving the regulatory framework of the EAEU. of the Union member states.

The EAEU Business Council

The EAEU Business Council is a permanent In February 2016, the Members of the Board coordination and advisory body of business circles - Ministers of the EEC approved the draft of the Union countries. The Council includes the Memorandum on Cooperation between the Eurasian The EEC includes Union of Industrialists and Entrepreneurs (Employers) Economic Commission and the Business Council of Armenia, the Confederation of Industrialists of the Eurasian Economic Union. The document 21 Advisory Committees 30 Subcommittees and Entrepreneurs (Employers) of Belarus, the confirms the importance of taking into account National Chamber of Entrepreneurs of Kazakhstan the interests of the business communities of the “Atameken”, the Kyrgyz Union of Industrialists and Union countries to ensure its effective development. Entrepreneurs and the Russian Union of Industrialists Feasibility of the formation of a consolidated more than more than and Entrepreneurs. position of the business communities on the matters related to business activity in the Union has been 50 Working Groups 20 Expert Groups The Council develops a coordinated position of recognized. the EAEU business community in its interaction with the bodies of the Union, establishes direct The document describes the main areas of communication and dialogue between the Union cooperation between the Commission and the EAEU business circles, promotes trade and economic Business Council such as consideration of proposals relations, industrial and financial cooperation, as of the Business Council aimed at creating a well as improving the competitiveness of national normative legal base of the Union, holding business economies, identifying barriers, exemption and forums with participation of business communities of limitations of mutual access to the markets of the the Member States. integration association.

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Advisory Committees and Working Groups EASE OF DOING BUSINESS RANKING*

Advisory Committees and Working Groups operate in • interact with leading experts of authorised public all activity areas of the Commission within the scope authorities and the EEC on system and strategic economic issues of the Union functioning, Changes of forming systemic work between the EEC and the Country Ranking 2016 Ranking 2015 Ranking 2014 for 2014—2016 business community. • prepare proposals on improving the law of the Union to meet the needs of the market. Representatives of all national business communities The Republic of Korea 4 5 7 +3 of the EAEU member states act as independent The Advisory Committee for Entrepreneurship was experts of the Advisory Committees, Working and created under the Board of the Commission with a Great Britain 6 8 10 +4 Expert Groups on a permanent basis. view to improving the business environment in the Union member states and the systemic elimination of The USA 7 7 4 –3 Within the scope of these formats, representatives of excess pressure upon business. business regularly: Germany 15 14 21 +6

France 27 31 38 +11

Regulatory Impact Assessment (RIA) Armenia 35 38 37 +2

Kazakhstan 41 53 57 +16 Regulatory Impact Assessment (RIA) is a mandatory The EEC Working Group is responsible for regulatory step in the process of preparation of draft decisions impact assessment of draft resolutions. Following the Belarus 44 43 63 +19 of the Commission which may have an impact on first half of 2016, about 550 comments and proposals business activities. aimed at improving the business environment in Russia 51 54 92 +41 the Union countries have been prepared. With the The procedure is performed in order to identify and introduction of the RIA procedure into the daily operation eliminate the potential excess duties, restrictions, of the Commission, terms for placement on the EEC Israel 53 40 35 –18 prohibitions, unreasonable expenditures for business website of draft decisions of the Commission affecting entities that create barriers to free movement of goods, business activities increased from 15 to 93 calendar Kyrgyzstan 67 67 68 +1 services, capital and labour within the Union. days before the date of their expected adoption. China 84 90 96 +12

Uzbekistan 87 141 146 +59

Administrative Barriers Elimination Vietnam 90 78 99 +9

Within the framework of business advocacy and in of the Commission was conducted. For every tenth Iran 118 130 152 +34 order to eliminate excessive administrative barriers to draft, proposals were made on the elimination of the effective business development in the Union, the administrative barriers and unreasonable expenditures India 130 142 134 +4 Commission carries out expert examination of the of representatives of business communities that impede efficiency of draft EEC regulations that affect the interests free movement of goods, services, capital and labour in Egypt 131 112 128 –3 of business entities. the Union countries. Tajikistan 132 166 143 +11 From October 2012 to the first half of 2016, an The businessmen take part in the consideration of the analysis of more than a thousand of draft regulations EEC resolutions concerning business activities.

* http://www.doingbusiness.org/.

The positions of the Member States in the Ease of At the same time, in certain positions of the ranking, Doing Business Ranking indicate roughly equal starting some Member States are at the top not only within the conditions for the operation of the business in the EAEU. Union but also in comparison with the rest of the world.

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Eurasian Integration as а Part of Global Economy

KEY PARTNERS OF THE EURASIAN ECONOMIC UNION GLOBALLY

Vietnam Iran Chile 4.3 2.3 0.8 92.7 79.0 18.1

GDP 193.59938* GDP 393.7* GDP 240.21571*

Israel The Republic MERCOSUR1 of Korea 2.8 19.7 8.2 8.5 51.4 292.1

GDP 296.07543* GDP 1,377.87311* GDP 2,485.7*

Egypt China ASEAN2 4.3 78.8 15.1 91.7 1,373.5 622.4*** GDP 330.77855* GDP 10,866.444* GDP 2,033.9**

India Singapore ЕU3 8.8 3.2 283.1 1,295.7 5.5 508.2 * Data from the official web site of the . ** Data from the official web site of the International Monetary Fund. GDP 2,073.54298* GDP 292.73931* GDP 16,229.46416* *** Data from the official web site of the АSЕАN.

Foreign trade volume of the EAEU Population, mln people GDP Aggregate GDP for 2015, bln USD Member States in 2015, bln USD 1 Countries included in the MERCOSUR: Argentina, Brazil, Paraguay, Uruguay, Venezuela. 2 Countries included in the ASEAN: Brunei, Cambodia, Indonesia, , Malaysia, , Philippines, Singapore, , Vietnam.

3 Countries included in the EU: , Belgium, Bulgaria, , Cyprus, Czech Republic, Denmark, , , France, Germany, Great Britain, , , Ireland, Italy, , , , Malta, the Netherlands, Poland, Portugal, , , Slovenia, , Sweden. 60 61 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

Eurasian Economic Union: global scale. The EAEU as a subject of international law task in the area of the EAEU’s Economic Relations of the Union on the procedure for conclusion trade policy. Free trade agreements with Third Countries and Key of international treaties of the are also intended both to create Integration Associations.” The Eurasian Economic Union with Regional economic integration associations, and principles of the better conditions for the expansion Eurasian Economic Union shall third countries, their integration integration is a key trend international organisations. The Charter and other universally of export supply of non-primary become an open economic associations and international in the global economy, the Eurasian Economic Union as an recognised principles and goods and to include national community, organically integrated organizations; for conjunction of future of which will largely international organisation of the regulations of international law. economies of the Union members in the global economic system the Eurasian Economic Union depend on the effectiveness regional economic integration in the global value added chains. as a reliable bridge between and the Silk Road Economic of the integration of the global has the legal personality and The Eurasian integration project not Europe and advancing Asia. Belt Project; for deepening dialogue groups and their is vested with the right to enter only gained legal independence Thus, the EAEU representing a Whereby, development of trade economic relations and developing internal stability. Therefore, into international treaties with and internationally recognised broad market with a population of and economic relations with cooperation with third countries, trying to take the best other parties of the international influence, but also became an over 180 million peo-ple, access to major partners and new emerging including China, India, Israel, position in a new structure of relations and undertake obligations active and prominent player in skilled labour force, and transport markets shall contribute to the Egypt, Iran, Cambodia, Singapore, the world economic system corresponding to the status of an . infrastructure, is an attractive trade growing importance of the Eurasian Serbia, , Peru, Chile, the that has been emerging in international organisation. In order to expand the international and eco-nomic partner. Economic Union globally. Republic of Korea, Ecuador, and recent years, the Eurasian recognition of the Eurasian integration organizations such as Economic Union Member The Treaty on the Eurasian Economic Union, the EEC is In accordance with the initiative In order to promote international the SCO, ASEAN, MERCOSUR; for States develop their project of Economic Union of May 29, working to form the vision of the of the President of Kazakhstan cooperation, the Heads of Member establishing relations between the economic integration. 2014 in accordance with Article EAEU as a reliable and predictable N.A. Nazarbayev, 2016 was States set the objectives: for Eurasian Economic Commission 102 of the Charter of the United economic partner. Representatives declared the “Year of Deepening preparation of the Agreement and the European Commission. The Treaty on the Eurasian Nations was registered in the of the Commission deliver Economic Union, which entered United Nations Secretariat on speeches and presentations to the into force on 1 January 2015, July 24, 2015. Registration of the governmental, business and expert established the EAEU as a Treaty provides openness and communities of Europe, Latin The Asia-Pacific Region fully-fledged party of the global transparency of the agreements America, Asia and CIS, in the USA, economic relations. Moreover, of the participants thereto at the Republic of South Africa etc. and it laid the solid foundation highest international level. The take part in regular meetings with Vietnam Vietnam and the Chairman of the Immediately after the Agreement for the international relations Treaty on the EAEU confirmed diplomatic missions, international EEC Board was signed. enters into force, Vietnam will have between the Union and other once more the commitment of its organizations, and business In world practice, the conclusion of to cancel (set to zero) the import entities — third parties, their members to the objectives and structures. agreements on the establishment Vietnam is an attractive market customs duties on more than 58% of free trade zones (FTZ) with a population of about 90 tariff lines of the whole commodity continues to be an effective tool to mln people. The agreement nomen-clature for the suppliers promote bilateral and multilateral with Vietnam opens up new from the Eurasian Economic Union. International Cooperation cooperation in the field of trade opportunities to the EAEU As regards the other 30% of the and economic relations and countries. Vietnam is active in commodities nomenclature, the To date, the following tracks International contacts of the . developing supply chains in import customs duty rates will be The Union’s international of international cooperation of Commission are focused on the Asia-Pacific region. Deeper reduced to 0% during the transition activities are carried out by its the Commission have been the development of trade and Until 2014, the only free trade zone trade and economic relations period. The free trade zone bodies (the Supreme Eurasian formed - with economic cooperation of the involving all the Union countries with the partner will enable the between the EAEU and Vietnam Economic Council, the associations, governments of Member States of the EAEU with simultaneously was the free trade manufacturers and suppliers was not created from scratch. Our Intergovernmental Council, third countries, and international third countries, diversification zone of the CIS. from the Union countries to get countries have been involved in the Commission, and the organizations. and innovative development of access to the established supply mutually beneficial cooperation Court) in accordance with the their economies, increase in In May, 2015, the EAEU concluded channels in the Asia-Pacific Region. for many years. Mutual trade has Procedure of international Interaction in these areas is volumes and improving the trade its first full-scale free trade Furthermore, the products supplied been growing recently - from 2.6 cooperation conducted by the conducted in a variety of formats and investment framework that agreement with a state of the to Vietnamese market will be more bln USD in 2010 to 4.27 bln USD in Eurasian Economic Union. ranging from memorandums of will eventually contribute to the Asia-Pacific Region - Vietnam. competitive in terms of price due 2015, which proves the involvement understanding and deepening further development of the Union Negotiations with Vietnam started to reduction or cancellation of and interest of entrepreneurs in In accordance with this document, cooperation to agreements on as an effective and competitive in 2013. The EAEU delegation led import customs duties. Customs- maintaining and developing the the Main Directions of the creation of a free trade zone (FTZ). international organization. by the EEC Minister in charge of free access to the Vietnamese mutually beneficial cooperation. international activity of the EAEU Generally, the interaction starts in Trade held eight rounds of talks, market will also open the door to In view of this, the easing of trade are taken on the short-term a memorandum format that allows Creation of a preferential agreement and on May 29, 2015, in Burabay the export of goods which were not procedures and elimination of basis, which are followed by the creating a platform for discussion network to ensure beneficial trade village, Kazakhstan, an Agreement supplied earlier due to higher price, barriers is a logical and consistent Commission in exercising its and deepening cooperation in the relations with partners in different at the level of the Chairmen of the including due to quite high customs decision. international contacts. future. regions of the world is the priority Governments of the EAEU and duties.

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The free trade zone agreement procurement. The Agreement of trade in services, investment the Eurasian Economic Union. the Union as a subject of the world between the EAEU and Vietnam significantly increases the execution and movement of The Agreement on information economy with the PRC on trade embraces all areas of trade and predictability of trade regulations individuals. Initially, they apply exchange between the customs regulations, to economic cooperation. Apart and creates conditions for the to relations between Russia and bodies of the EAEU Member promote cooperation, and ensuring from the reduction of import increase and diversification of trade Vietnam only. However, other States and the People’s Republic operation of the developed customs duty rates, the Agreement turnover in the framework of the countries of the Union also have of China will enable monitoring cooperation institutions on a establishes the Parties’ obligation free trade zone. This document also the opportunity to join them later. of the flow of goods crossing the broad cooperation agenda. The to protect the intellectual property provides for “safety” mechanisms customs borders of the Union Agreement does not provide for the rights, sets common principles against unfair competition and On October 5, 2016 after the more efficiently and improve liberalization of customs duties in for competition protection, sets uncontrolled growth of imports. completion of all ratification conditions for control over the mutual trade. forth cooperation venues in the procedures, the Agreement import of Chinese goods to the area of sus-tainable development, It also provides for obligations in entered into force. EAEU Member States, as well as A new impetus to the deepening of e-commerce and government terms of the mutual liberalisation their transit through the common cooperation between the EAEU and customs territory of the Union. the PRC was given with the visit of Information exchange will promote the Chairman of the Board of the trade in good faith and have a Eurasian Economic Commission Meeting of Tigran Sargsyan, the beneficial impact on the overall Tigran Sargsyan to China in August Chairman of the Board of the Eurasian economic situation of the Member 2016, where he met with the First Economic Commission with Zhang Gaoli, States. Vice Prime Minister of the State the First Vice-Premier of the PRC of China Zhang Gaoli. How negotiations on the free trade zone are conducted Council In May 2015, the Presidents of the Member States of the Eurasian On the suggestion of Zhang Gaoli, Both the supranational body (the EEC) and any of the Member States may initiate Economic Union decided to the Parties, inter alia, agreed to negotiations between the Eurasian Economic Union and a third country or a start negotiations with China on work on the creation of a “data China group of countries for creation of a free trade zone. A potential partner may conclusion of an agreement on bank” in respect of projects also make a proposal to start negotiations. The initiator of such negotiations The Eurasian Economic trade and economic cooperation. of common interest for China should provide a statement of reasons underlying the FTZ Agreement. Having Commission is actively cooperating This is an important stage and the Union Member States. received the aforementioned statement, the EEC makes an expert assessment with the authorities of one of the sequencing the entire structure Tigran Sargsyan and Zhang Gaoli and collects the opinions of the Union Member States. If all members agree that major trading partners of the of relations and providing a basis also agreed that they would the prospects of the Agreement are interesting, they form a joint research group Union - the People’s Republic of for further progress in the area of meet periodically to discuss the (JRS) comprising the representatives of the EAEU countries, the EEC, and the China. In 2012, two Memoranda of trade simplification and elimination development of relations and interested partner. Cooperation were signed with the of non-tariff barriers that restrict support the responsible authorities Chinese Ministry of Commerce: on reciprocal access to markets. to find optimal solutions. The work carried out by the research group is the preparation for negotiations; trade and cooperation in the field In addition, in October 2015 the here, ex-perts study the economies of the Parties and the parameters of their of anti-dumping, countervailing and Presidents adopted a disposition India external and mutual trade, and search for the areas which are of mutual interest safeguard measures. on coordination of activities of The joint research group is for the participants, and develop a draft scheme of future arrangements. the EAEU Member States on currently continuing its work on Following the results of its work, JRS presents a detailed report about the In 2013-2014, due to regular expert conjunction of the Eurasian the investigation of the feasibility feasibility of negotiations regarding the free trade zone (FTZ). consultations, the Parties managed Economic Union and the Silk Road of entering into a Free Trade Zone to settle some disputable mutual Economic Belt. Agreement with India. On the basis of this report, the Presidents of the EAEU Member States decide on trade issues at the initial stage. the launch of negotiations. If the decision is positive, the EEC Council approves Furthermore, the interests of both Formal negotiations started in the Mongolia the Directives for negotiations at the level of vice prime ministers. After that, manufacturers from the Union first half of 2016. In June this year in In June, 2015, in order to promote the representatives of the EEC, the EAEU Member States and the future FTZ countries and Chinese exporters , the EEC Minister in charge comprehensive cooperation partner elaborate the text of the Agreement and decide on future obligations and were taken into account. of Trade Veronica Nikishina and between the EAEU Member concessions. As a rule, it takes several negotiation rounds. the Chinese Minister of Commerce States and Mongolia, to increase Since 2012, the Commission has Gao Hucheng signed a joint the efficiency of mutual trade The negotiation process itself is a good background for the development of been working on the arrangement statement on the transition to the and implement measures aimed mutual trade on a bilateral basis by the participating states. Based on the of information exchange with negotiation stage of the Agreement at eliminating barriers to trade, a expected simplification of market access, the entrepreneurs start to actively the People’s Republic of China. development. Memorandum on Cooperation establish business contacts and elaborate establishing a distribution network in The PRC has been chosen as a between the EEC and the order to be the first ones to take the advantages of the free trade. “pilot” partner due to its greatest The goal of the Agreement is Government of Mongolia was share in foreign trade turnover of provision of complex interaction of signed.

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The Republic of Korea and improvement of e-procurement countries and the Republic of ASEAN The EEC is developing cooperation system in particular. Korea completed its work. It with such a large and industrialized was previously established to economy as the Republic of In addition, on November 30, 2015, determine the optimal format for The Commission is working to Korea, too. A Memorandum a Memorandum of Cooperation deepening economic and trade establish cooperation with the of Understanding between the between the Eurasian Economic cooperation between the partners. ASEAN. Commission and the Government Commission and the Ministry of The results of its work will be Procurement Service of the Industry, Trade and Energy of the reported to the Council of the In 2014, the Minister of Trade Republic of Korea was signed Republic of Korea was signed on a Eurasian Economic Commission of the EEC for the first time in October 2015. The document wide range of trade cooperation. for making a decision on further participated in the discussion provides for the exchange of steps in order to increase quality of the economic agenda of experience in regulation of In September 2016, the joint and diversification of bilateral trade the Russia-ASEAN dialogue. government procurement in general team of academics of the EAEU and investment. In 2015, the EEC successfully participated in a business forum with the ASEAN, which resulted in identifying real interest of the regional business in the EAEU Tigran Sargsyan, the Chairman of the EEC Board and Samdech Akka Moha market. Sena Padey Techo Hun Sen, the Prime Minister of the Kingdom of Cambodia APEC signing the Memorandum of Understanding between the EEC and the Kingdom On May 19, 2016 in Sochi, the of Cambodia One of the EAEU Member States The results of the Joint Strategic of the Forum. In the case of EEC Board Chairman Tigran - the Russian Federation - is a Study and the results of the implementation of the FRZAPR Sargsyan, at a plenary session of member of the APEC Economies discussion on the FRZAPR by in the foreseeable future, the Russia - ASEAN Business Forum Forum. The Forum pays great the leaders of economies of the Union will pay special attention “Russia - ASEAN Partnership in attention to the improvement of Forum in 2016 are of “substantive” to the solutions that are offered the new integration architecture Member States. The EEC Council Serbia trade regulation and represents interest for the Union, taking by FRZAPR in respect of trade of the Asia-Pacific Region: in October 2016 will consider a sort of an “incubator” of ideas, into account the location of our simplification and facilitation, business opportunities”, stated establishment of the JRG with the Consultations on preparations for which, if successfully tested integration association between efficiency of industrial cooperation the need to develop cooperation Republic of Singapore. the first round of talks with Serbia by individual APEC member Europe and the Asia-Pacific at the regional level and other between the Commission and will be held before the end of the economies, are available for Region, as well as plans for initiatives aimed at improving the the ASEAN. In his opinion, one The year. With regard to Serbia, we large-scale implementation in the the EAEU on establishing FTZs competitiveness of goods and of the most effective formats hope that the negotiation process framework of the multilateral trade with the individual economies services produced in the region. of cooperation could be the On October 16, 2015 at the will be fast enough as it is here system. exchange of information on session of the Supreme Eurasian on the harmonization of the trade matters of interest to the business Economic Council in Burabai village, regime - Belarus, Kazakhstan On the platform of the Forum, in trade, technical regulations, Kazakhstan, based on the report and Russia already have bilateral the participants also discussed customs regulations and barriers of the Joint Research Group, it was agreements with Serbia. However, the possibility of establishing the reduction. The ASEAN decided to launch negotiations on Armenia and Kyrgyzstan do not APEC free trade zone (FRZAPR). General Le Luong Minh also the FTZ with Israel. The first round of have similar agreements. The initiative on the FRZAPR was called for further strengthening of talks is scheduled for autumn 2016. enshrined in the Bogor Goals in relations between the business The CIS 1994. However, the discussion in communities of the Member Today, the work of the joint this area has advanced thanks to States of the associations. research group on the study of On the initiative of the EEC, the the initiatives of China in 2014. One the feasibility of concluding a Memoranda of Understanding of the activities directions was the In May 2016, the Eurasian free trade agreement with Egypt have been signed with the launch of the Joint Strategic Study Economic Commission signed has been completed. Till the Standing Committee of the Union to Assess the Economic Feasibility the Memoranda of Understanding end of this year, it is planned State Belarus and Russia. The of FRZAPR (completion is planned with the Government of the to summarize the outcomes of Memorandum of Cooperation with before the end of 2016). Kingdom of Cambodia and with the joint study of the feasibility the CIS Committee was the Government of the Republic of concluding a preferential also signed. of Singapore, the ASEAN agreement with Iran. Tigran Sargsyan, the Chairman of the EEC Board and Koh Poh Koon, the Minister of Trade and Industry of Singapore signing the Memorandum of Understanding between the EAEU and Singapore

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The Latin America (CEFACT), the United Nations International Road Transport positions, on which Kazakhstan’s countries did not go beyond the Issues discussed in the WTO and Commission on Union (IRU), the Organization bindings are below the bindings basic commitments under the WTO related to the area of the EAEU The Memorandum of Law (UNCITRAL), the UN Food for Cooperation of Railways specified by the Russian Agreement. The incorporation of regulation are reviewed at the Understanding was signed in and Agriculture Organization (FAO), (OSJD), the International Civil Federation, the EAEU Member these commitments into the Union platform of the Commission. Thus, June 2015 between the EEC and the Aviation Organization (ICAO), States have made a joint decision law was considered as inexpedient. the EEC conducted an analysis the Government of the Republic (WTO), the Shanghai Cooperation the International Air Transport not to incorporate the bindings of the WTO Agreement on Trade of Chile, and in October 2015 - Organization (SCO), the World Association (IATA), the International of Kazakhstan in the Common The relevant provisions are Facilitation, which was agreed between the EEC and the Govern- Health Organization (WHO), the Maritime Organization (IMO), etc. Customs Tariff, but to provide for enshrined in the treaties on by the WTO members by the ment of the Republic of Peru. International Labour Organization exemptions from it for the Kazakh accession of the Republic of Ar- end of 2013 and adopted by the (ILO), the Organisation for Economic The main aim of the party. menia and the Kyrgyz Republic decision of the General Council Cooperation and Development Commission’s work in to the Treaty on the Eurasian of the WTO in November 2014. The EU (OECD), the International Monetary this direction is the use of To ensure the application by Economic Union. Moreover, from Its provisions will be taken into Fund (IMF), the World Bank (WB), experience and best global Kazakhstan of the exemptions the date of accession to the Union, account in the improvement of One of the priorities of the the World Customs Organization practices of international from the CCT within the EAEU, in the Armenian and Kyrgyz parties customs regulations in the Eurasian Eurasian Economic Commission (WCO), Eurostat, the European organizations to meet the October 2015, the Heads of the began to apply the Common Economic Union. is development of cooperation and Mediterranean Organization challenges of the Eurasian Member States signed the Protocol Customs Tariff that is allowed by between the Eurasian Economic for Plant Protection (EPPO), the Economic Union. Most tracks on certain matters of entry and the WTO (Article XXIV of the GATT) Within the framework of the Union, Union and the European Union. The International Organization for are based on memoranda on circulation of goods in the customs in the case of joining the Customs the work to optimize the internal urgency of such a dialogue is due Migration (IOM), the International interaction, cooperation and territory of the Eurasian Economic Union by an organization member. interaction of the Member States to the fact that the European Union Aviation Committee (IAC), the understanding. Union. The Protocol provides for In order to ensure compliance and the Commission on specific is the biggest trade and economic the ability for Kazakh foreign trade by Armenia and Kyrgyzstan with matters related to the WTO is partner of the EAEU. In 2015 the operators to import goods, Kazakh- its commitments to the WTO, in carried out. The Procedure for EU accounted for over 50% of stan’s tariff bindings for which are accordance with Article XXVIII interaction between the Members total exports and over 40% of total below the CCT, either under the of the GATT, procedures for the States of the Eurasian Economic imports of the Eurasian Economic WTO rates, or the CCT rates. revision of tariff commitments Union and the Eurasian Economic Union. Meeting the obligations by the EAEU Member of the two countries in the WTO Commission on international States in relation to the WTO at the supra- Whereby, it is agreed that the were initiated. At the Union level, trade disputes with third parties goods imported using the WTO the decisions were made on was adopted. The document International national level rates should be used only for the establishment of common specifies the issues of interaction organizations consumption in the Republic of negotiating delegations on the on possible disputes, including Kazakhstan and shall not be freely revision of tariff commitments with against any of the Member States The EEC is also actively The law of the Union, as well of individual member states of the circulated throughout the Union. the participation of representatives in the framework of the WTO cooperating with international as the preceding law of the association. Thus, the Common Exemptions to the CCT allowed of all the Member States and the under the regulation measure of organizations and institutions Customs Union and the Com- Customs Tariff of the Customs Kazakhstan to fully meet its Commission in each of them. the Union. regarding the international activities mon Economic Space, was Union (CU CCT) has been aligned commitments in the World Trade of the Eurasian Economic Union. formed in accordance with with the tariff bindings of Russia. Organization until Kazakhstan’s Today, the EEC ensures The Procedure for interaction of the rules and principles of This Agreement has become an commitments are not revised that the measures taken the Member States of the Eurasian The organizations, with which the World Trade Organization integral part of the Treaty on the following negotiations in the WTO. in the field of foreign trade Economic Union and the Eurasian the Commission conducts a (WTO). Eurasian Economic Union. In addition, exemptions to the regulation (anti-dumping, Economic Commission on the dialogue, include: The United CCT retained a higher level of tariff countervailing and special preparation of draft notifications Nations Conference on Trade and After joining the WTO by one Considering almost similar protection of the Union as a whole. protection measures, for submission to the World Trade Development (UNCTAD), the United of the CU and CES Member obligations of Kazakhstan and sanitary and phytosanitary Organisation has been developed Nations Industrial Development State - the Russian Federation Russia to the WTO (with the In 2015, the Republic of Armenia requirements, technical and is under approval. The purpose Organization (UNIDO), the UN - the Agreement on operation exception of tariff concessions), and the Kyrgyz Republic, which regulations and other of this document is to ensure the Economic Commission for Europe of the Customs Union within the alterations to the Treaty on the have a longer history of the measures) are compliant timely and consistent submission (UNECE), the United Nations multilateral trade system was EAEU after accession of the membership in the WTO, joined the with the rules and regula- of notifications to the WTO on Economic and Social Commission signed that provided for assurance Republic of Kazakhstan to the Union. Given the earlier accession tions of the WTO; it also the Union regulation measures for Asia and the Pacific (ESCAP), of compliance of the CU with not organization were not required. In of Armenia and Kyrgyzstan to the participates in the work of envisaged under the commitments United Nations Centre for Trade only the basic principles of the respect of tariff bindings, taking into WTO as compared to Russia or specialized committees of the to ensure the transparency of trade Facilitation and Electronic Business WTO, but with the commitment account the significant number of Kazakhstan, commitments of these organization. regulation.

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Integration Segment of Economies of the EAEU Member States

THE CONTRACTUAL LEGAL FRAMEWORK OF THE EURASIAN ECONOMIC INTEGRATION. KEY DOCUMENTS

Integration potential means THE CUSTOMS UNION COMMON ECONOMIC THE EURASIAN 2017 The Agreement on additional opportunities for SPACE ECONOMIC UNION requirements to implementation economic development of The Agreement on regulation of of activities in financial markets. 2010 the alcohol market within the the Union countries due to 2012 2015 EAEU. The Agreement on mutual the most efficient use of The Customs Code of the 17 basic international The Treaty on the EAEU. admission (accreditation) of resources, diversification of Customs Union The Pension Agreement of brokers and dealers of the economies, implementation agreements introducing the workers and their families within Transfer to the CU Commission The Agreement on coordination EAEU Member States to the Common Economic Space. the EAEU countries. To ensure of transport, including of powers to implement the of activities on protection of national stock exchange. social provision of workers of the transit potential, foreign trade regulation (the intellectual property rights. 2013 parties, and the provision of The international treaty on the development of competitive power to change rates of import Agreement on shipping. equal rights and guarantees, the rules and procedures to environment, financial customs duties, introduction of Model Law “On Competition” Treaty on the EAEU enshrines ensure safety and circulation markets and improving the the Foreign Economic Activity that defines a common approach the right of recognition of of products, the requirements Commodity Nomenclature, 2016 business climate, to the basic provisions of the insurance service record for which are not established development of common establishment of tariff in the CU The Customs Code of the acquired in the countries of the by the Technical Regulations preferences and tariff quotas, countries (the EAEU) with the aim guidelines of Eurasian Economic Union. Union. of the Eurasian Economic macroeconomic policies determination of tariff preference of convergence of legal Union. and establishment of system, introduction of non-tariff regulation of economic relations The Agreement on exchange of The Protocol on exchange of effective working common regulation). in competition policy on the information, including confidential, information in electronic form The international treaty on the Union territory. In accordance in the financial sector in order to between tax authorities of the procedure and conditions for market of goods, services, Investigation and other with the law, the EEC gained the create conditions for free capital EAEU Member States for tax removal of technical barriers in capital, and labour. procedural actions prior to the power to control the compliance flow in the financial markets. administration. mutual trade with third introduction of safeguard, with the competition rules in countries. anti-dumping and compensatory transboundary markets on the The Protocol on amendments to The Agreements on the tax measures in the common territory of the Customs Union the Agreement on the common policy principles in respect of The Treaty on trademarks, customs territory of the Customs (the EAEU) countries. customs registry of intellectual excise duties on alcohol and service marks and appellations Union in respect of goods property objects of the Member tobacco products in the EAEU of origin of EAEU goods. originating from foreign countries The Agreement on information States of the Customs Union, Member States. The Agreement on the cooperation in statistics in order dated May 21, 2010. to provide the EEC and the Union The Agreement on the audit procedure of managing countries with the official The Agreements on the tax activity on the territory of the copyright and related rights on statistical information necessary policy principles in respect of EAEU. a collective basis. to carry out their activities and excise duties on alcohol and The Agreement on information Amendments to the Treaty on monitor the implementation of tobacco products in the EAEU exchange in the area of the EAEU in respect of the international treaties that are the Member States. counteraction to legalisation principle of exhaustion of the legal framework of the CU (the The Agreement on joint control (laundering) of the proceeds of exclusive right to the trademark, EAEU). activities on compliance with crime and terrorist financing in the trademark of the Union. The Agreement on the procedure the Procedure for transfer and the movement of cash and (or) of movement of narcotic drugs, distribution of import customs monetary funds across the psychotropic substances and duties (other duties, taxes and customs border of the EAEU. their precursors on the Customs fees having equivalent effect) The Agreement on coordinated Territory of the Customs Union. and their transfer to the budgets of the EAEU Member approaches to the regulation of States. currency relations and measures of liberalisation.

70 71 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

SINGLE AND COMMON MARKETS OF THE EAEU AGREED (COORDINATED) POLICIES OF THE EAEU

2025 THE CUSTOMS THE COMMON THE EURASIAN 2022 UNION ECONOMIC SPACE ECONOMIC UNION Coordinated 2019 financial policy The EAEU 2017 common market The common oil The common for audit services and oil products 2015 The EAEU common electricity market of the EAEU exchange space market of the The single services market of the EAEU EAEU The common Creating a common financial market of The common labour market of the EAEU system of access to the EAEU the state (municipal) Agreed labour migration policy procurement in the EAEU The common gas made in electronic format market of the EAEU Agreed policy for consumer protection policy

Agreed intellectual property policy

Agreed policy for ensuring uniformity of measurements

The Main Directions of Industrial Cooperation between the Union Member States, as well as formats and tracks 2012 of cooperation with the business community of the Member States with the prospect of the agreed industrial The agreed policy policy have been defined. in technical 2010 regulations Agreed policy in the application of sanitary, veterinary and phytosanitary quarantine Agreed measures macroeconomic The integrated policy The Agreement on Procedure for Confidential Information currency market of Protection and Liability for its Disclosure in the the EAEU Implementation by the EEC of the Powers to Control The common Compliance with the General Rules of Competition market of entered into force. Harmonization of excisable goods The common the legislation of (alcohol and tobacco medicines market the EAEU Member products) of the EAEU States in respect of of the EAEU* administrative and The common criminal liability for violations in the field of 2023 market for medical competition products of the 2020 Agreed agricultural policy EAEU *

Decision of the Supreme Eurasian Economic The main directions 2018 Council of the EEC transferred powers to and stages of the monitor compliance with uniform rules on transport agreed competition in the transboundary markets. (coordinated) policy ** The Model Law «On Competition» is adopted * Protocols of the Armenia accession to the Agreement on common principles and rules of medicines and The common 2016 medical products circulation in the Eurasian Economic Union undergo the ratification procedure. market of goods ** The document is expected to be approved at the meeting of the Supreme Eurasian Economic Council by the of the CU 2013 end of 2016.

2011

72 73 1H 2016 Eurasian Economic Commission Eurasian Economic Integration: Facts and Figures

FOUR “FREEDOMS” IN THE EAEU

The aspiration to introduce a single market for goods, services, capital and labour is one of the main objectives of Contact Information of the Eurasian the Union enshrined in Article 4 of the Treaty. Economic Commission

2011 2015 2025

CUSTOMS UNION EURASIAN ECONOMIC UNION Chairman of the Board Member of the Board — Minister in charge of Tigran Sargsyan Customs Cooperation • the right to receive free emergency medical care; Reception tel.: +7 495 669 24 44 Mukay Kadyrkulov THE COMMON 2. Reception tel.: +7 495 249 25 00 ECONOMIC SPACE • the right of children to Member of the Board — Minister in charge of the education. Development of Integration and Macroeconomics Member of the Board — Minister in charge of The single services Tatyana Valovaya Energy and Infrastructure market — free movement 1. of services Reception tel.: +7 495 669 24 06 Adamkul Zhunusov 4. Reception tel.: +7 495 249 25 25 Start of operation for 43 Member of the Board — Minister in charge of services sectors from 2015. Till The single market of Economy and Financial Policy Member of the Board — Minister in charge 2025 a transitional period for 21 goods — free movement The common financial Timur Suleymenov of Competition and Antitrust Regulation service sectors is fixed with the of goods market — free movement Reception tel.: +7 495 669 24 07 Nurlan Aldabergenov indication of a concrete date of of capital transition to the status of the Reception tel.: +7 495 669 24 14 Removal of customs controls Member of the Board — Minister in charge of at internal borders between single market for each sector. The common financial market

Belarus, Kazakhstan and implies: Industry and Agriculture Member of the Board — Minister in charge of Russia. Sergey Sidorskiy Internal Markets, Information Support, Information • harmonised requirements Reception tel.: +7 495 669 24 08 & Communication Technologies for the regulation and supervision in the sphere Karine Minasyan 3. Member of the Board — of financial markets of the Reception tel.: +7 495 669 25 55 Member States; Minister in charge of Trade Veronika Nikishina The common labour • mutual recognition of market — free movement licenses in the banking Reception tel.: +7 495 669 24 09 of labour and insurance sectors, as well as in the service Member of the Board — Minister in charge of Ensuring the right of citizens of sector in the market of Technical Regulations the Union to work in any securities; Valery Koreshkov Member State of the Union without any a permit. • conducting activities to Reception tel.: +7 495 669 24 11 provide financial services The common labour market on the entire territory of implies: the Union without the • direct recognition of establishment of a legal education documents; entity; • settling issues in respect of • administrative cooperation periods for temporary stay between authorised of citizens; authorities of the Member States, including through • providing a full scope of exchange of information. social guarantees;

74 75 Eurasian Economic Integration: Facts and Figures

Press office of the Eurasian Economic Commission e-mail: [email protected] Telephone: +7 495 669 24 64

Website of the Eurasian Economic Union www.eaeunion.org

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