2018 Annual Report CONNECTING PATHS Annual Report Annual Report EEC | Annual Report 2018 Contents Introduction by the Chairman of the EEC Board 6 Free Movement of Goods 59 EAEU Customs Code 59 Address by the Chairman of the Supreme Eurasian Economic Unified Technical Regulation 63 Council, the President of Russia 8 Stimulation of Industrial Cooperation 68 Heads of the Member States about the EAEU 10 Domestic Market Protection 71 Intellectual Property 73 EAEU Common Markets 75 Reliable Partner for the World 12 Common Markets of Energy Resources 75 EAEU in a Changing World 14 Common Market of Transportation Services 81 Forms of International Cooperation 14 Common Markets of Medicinal Products and Medical Devices 83 Geography of EAEU’s Cooperation 16 Common Agricultural Market 85 Common Trade Policy 28 Free Movement of Services 87 Reliability in the Union 30 Free Movement of Capital 88 Integration Results in the Rankings 32 Keep Up with the Times 35 Guarantor for Citizens 90 Ambitious Goals 39 Free Movement of Labor 92 Pension Provision in the EAEU 94 Business Development Space 40 Special Status for Workers in the EAEU 95 Interaction with Business Community 42 Eurasian Electronic Labor Exchange 95 Barrier-free Environment 43 Recognition of Scientific and Academic Degrees 96 Competition in Transboundary Markets 44 Requirements for Professional Driver’s Training 96 Assessment of the EEC Draft Decisions’ Impact on Business 46 Prospects for Developing the EAEU Single Labor Market 97 EEC Business Forums 48 Consumer Safety in the EAEU 98 EAEU Business Council 50 Novelties in Technical Regulation Ensuring Product Safety 98 Meetings with Business Community 50 SPS Measures: Standing Guard Over the Safety 100 Interaction with Experts 51 Protecting the Union’s Common Market from Hazardous Products 104 EEC Project Activities 52 In the Interests of Citizens 106 EAEU Digital Agenda to Help Businesses 52 Industrial and Agro-industrial Initiatives 56 Our Team 110 Eurasian Brands 57 EAEU Highlights 130 Four Freedoms in the EAEU 58 List of Abbreviations 134 2 3 EEC | Annual Report 2018 We Bring the World Together ustrial Develop ions Ind men d Nat t O nite rg U a n iz a t i o n United Nations Economic Commission for Europe Torshavn Moscow C Minsk o m International Organiz it atio é Eu éen de N AIFC n rop orm fo a r li Nur-Sultan sa M Budapest ti o i Ulaanbaatar g VD n M r A Е a А t als B i i R o r C e n at E Chisinau Yerevan M L Bishkek Beijing nd E a ng N Seoul sti E Te Athens for C In U y ter iet na A Soc Rabat Tehran t n m can io i eri n t a e l d U T N I r a n n a t Havana t i io e Amman on d ns rn In e C t on a er C f tio ion nat ere na iat ionale e nce l Air ssoc des Ch Hanoi n on Transport A emin t Tra s de f r de er W e an I d n o De t r v e e Bangkok ld lo r U pm n Phnom Penh O n en a r it t t g e i d a o Na n ti n ons i Eco s nomic Comm a is a sio l t Quito n A i o f Singapore o i n r r T f L r o a a r n t s A i p n o n r A t i A m s m soc ia a t e io l n H r Lima i e c a a l t a h n F d o t o h d e W a o n C rld d a En r er il A i gy Counc g b ri b cu e ltu a re n O s rgan ation Santiago ization of the United N W o rld C ANDEAN u MERCOSUR АSEАN CIS st COMMUNITY EAEU om s O rga nization 4 5 EEC | Annual Report 2018 Introduction I feel sure that with your support we will increase the pace of integration and move forward removing obstacles, implementing by the Chairman digital projects, harmonizing legislation and finding common solutions in the interests of citizens and businesses of our of the EEC Board countries. Dear Friends and Esteemed Colleagues! approaches. We are constantly engaged in I would like to emphasize that today’s global Approaches to forming a common market of research of various economic processes, trying to world trend, which changes the logic of business alcohol and tobacco products in the EAEU have further understand how to effectively organize our architecture and, in fact, determines the future of been agreed. We almost completed to elaborate Eurasian economic space, so that businesses and our Union, is digital transformation of the economy. the agreements on tax policy principles in our citizens could live and work comfortably. This We have achieved some success in implementing respect of excise duties on alcohol and tobacco. means that all of our approaches should be up-to- our digital agenda. A management office was Technical Regulation On the Safety of Alcoholic date and adequately fit to the world’s changes. created to deal with digital initiatives, which received Beverages, which had been under development dozens of serious digital proposals from the private since 2010, was adopted. It will ensure the free In 2018, we have achieved a significant increase in sector and public authorities, some of which have movement of alcohol released into circulation most economic indicators in the countries of our already been implemented. Among other things, on the single customs territory of the EAEU. Union. The Union’s GDP growth rate at constant they include marking and traceability projects, Now, the unified requirements for safety and prices was 2.5% in 2018. The mutual trade volume the introduction of electronic accompanying quality of products cover about 85% of the in goods within the Union increased by 9.2%. The documents and their mutual recognition in the goods on the Union market included in the foreign trade volume with third countries in 2018 Union countries and a number of others. Single List. increased by 18.8% compared to 2017, and exports of goods – by 26.8%. Today, mass digitization primarily affects services In 2018, a decision was made to sign a treaty and facilities with high consumer demand. From aimed at establishing a new system for EAEU A lot has been done in each area of the our integration’s perspective, the digitization is trademark registration. Moreover, the business Commission’s activities over the past year. primarily important in areas where common markets supported our idea of creating Eurasian brands, For example, it has become very productive in are created and joint competence of the Union in particular, in jewelry. terms of international relations. We signed the countries is implemented. These are customs Agreement on Trade and Economic Cooperation and trade in general, transport, financial and The year 2019 is especially significant for us. with China and the Interim Agreement leading to pharmaceutical markets, data exchange systems, We celebrate the 5th anniversary of signing the the formation of a free trade area with Iran. The labor market, public procurement, manufacturing Treaty on the EAEU and the 25th anniversary functioning of our free trade area with Vietnam industry and agricultural sector. of the Eurasian integration idea. During this has shown effective work. Memorandums of period, we have achieved the main thing — we Cooperation have been signed with the largest The Union is in the process of forming common have built-up an efficient integration model of regional associations: ASEAN, MERCOSUR, markets of electric power, gas, oil and petroleum multilateral interaction, we have ensured the We hereby present the Annual Report of the the CIS, and with the Government of Thailand. products. In 2018, we managed to ensure a solidity and viability of our Union. Eurasian Economic Commission (EEC) detailing Negotiations on the formation of free trade areas breakthrough in this direction – in December, the the key results of our work in 2018. Yet, by our with Israel, Singapore, Serbia, India and Egypt were members of the Supreme Eurasian Economic We go ahead to make our integration work I understand, of course, joint activities of actively conducted. Moldova has been granted the Council approved programs of forming common association one of the most significant centers the Commission, governments, authorized public Observer State status at the EAEU. markets of gas, oil and petroleum products. The of today’s world, which would allow efficiently authorities, scientists, entrepreneurs of the EAEU Technical Regulation On Safety of Natural developing the economies of its Member countries of the Eurasian Economic Union (EAEU). The EAEU Customs Code, which entered into Combustible Gas Prepared for Transportation and States, while being open to mutually beneficial force since the beginning of last year, ensured (or) Use has been adopted. cooperation with external partners. This is our Together, we kept doing one common matter of closer integration processes in customs regulation great strategic task. great consequence — developing a project that throughout the Union. The Code established We gradually eliminated obstacles that hindered is ambitious, innovative, and flagship in many advanced approaches that meet international free trade in our common economic space. In respects, and while building it we have to bring standards and introduced electronic declaration. 2017–2018, 31 such obstacles were eliminated. Tigran Sargsyan together the positions of the five countries, make The Code included 70% of proposals and initiatives difficult decisions together, and elaborate common received from entrepreneurs.