The Customs Union is an agreement adopted by the participants of the Eurasian Economic Union, the purpose of which is abolition of customs duties in trade relations. Based on these agreements, common ways of carrying out economic activities and a platform for quality assessments and certification are created.
Thanks to this it is achieved abolition of customs controls at the borders within the Union, general provisions for regulating economic activity for the external borders of the CU are concluded. In view of this, a common customs space is being created, using a generally accepted approach to border control. Another distinctive feature is the equality of rights of citizens of the customs area during employment.
In 2020, the Customs Union consists of next members of the EAEU:
- Republic of Armenia (since 2015);
- Republic of Belarus (since 2010);
- Republic of Kazakhstan (since 2010);
- Kyrgyz Republic (since 2015);
- Russian Federation (since 2010).
The desire to become a party to this agreement was voiced by Syria and Tunisia. In addition, we know about the proposal to include Turkey in the CU agreement. However, to date, no specific procedures have been adopted for these states to join the Union.
It is clearly visible that the functioning of the Customs Union serves as a good help for strengthening economic relations between countries located on the territory of the former Soviet countries. We can also say that the approach established in the agreement by the participating countries speaks of restoring lost connections in modern conditions.
Customs duties are distributed through a single sharing mechanism.
Given this information, it can be stated that the Customs Union, as we know it today, serves serious tool for the economic unification of countries that are members of the EAEU.
To understand what the activities of the Customs Union are, it will not be amiss to gain an understanding of how it was formed to its current state.
The emergence of the Customs Union was initially presented as one of the steps in the integration of the CIS countries. This was evidenced in the agreement on the creation of an economic union, signed on September 24, 1993.
Step by step moving towards this goal, in 1995, two states (Russia and Belarus) entered into an agreement between themselves on the approval of the Customs Union. Later, Kazakhstan, Kyrgyzstan, and Uzbekistan also entered this group.
More than 10 years later, in 2007, Belarus, Kazakhstan and Russia signed a pact to unite their territories into a single customs region and approve the Customs Union.
In order to specify the previously concluded agreements, from 2009 to 2010, more than 40 additional agreements were concluded. Russia, Belarus and Kazakhstan have decided that, starting in 2012, a Common Market thanks to the unification of countries into a single economic space.
On July 1, 2010, another important agreement was concluded, which put into motion the work of the Customs Code.
On July 1, 2011, the current customs controls at the borders between countries were canceled and general rules were established at the borders with states that are not in the agreement. Until 2013, uniform legislative norms for the parties to the agreement will be formed.
2014 – The Republic of Armenia joins the Customs Union. 2015 – The Republic of Kyrgyzstan joins the Customs Union.
On January 1, 2018, a new unified Customs Code of the EAEU. It was created to automate and simplify a number of customs processes.
Territory and management
The unification of the borders of the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan became the basis for the emergence of the Single Customs Space. This is how the territory of the Customs Union was formed. In addition, it includes certain territories or objects under the jurisdiction of the parties to the agreement.
The limit of the territory is the border of the Customs Union with third-party states. Moreover, the existence of borders for individual territories located under the jurisdiction of the Union member states is normatively established.
The management and coordination of the Eurasian Economic Union is carried out by two organs:
- Interstate Council- the highest body of a supranational nature, consists of heads of state and head of government of the Customs Union.
- Customs Union Commission– an agency that deals with issues related to the formation of customs rules and regulates foreign trade policy.
Directions and conditions
When creating the Customs Union, countries declared the main goal socio-economic progress. In the future, this implies an increase in trade turnover and services produced by business entities.
The increase in sales was initially expected directly in the space of the vehicle itself due to following conditions:
- The abolition of customs procedures within the Union, which was supposed to make products produced within a single space more attractive, due to.
- Increasing trade turnover by eliminating customs controls at internal borders.
- Adoption of uniform requirements and integration of safety standards.
Achieving goals and perspectives
Having collected available information about the emergence and activities of the Customs Union, we can come to the conclusion that the results of increasing the turnover of goods and services are published much less frequently than news about the signing of new agreements, i.e. its declarative part.
But, nevertheless, analyzing the stated goals when creating the Customs Union, as well as observing their implementation, one cannot remain silent that simplification of trade turnover has been achieved and competitive conditions have been improved for economic entities of the Customs Union states.
It follows from this that the Customs Union is on the way to achieving its goals, however, in addition to time, this requires the mutual interest of both the states themselves and the economic elements within the Union.
The customs union consists of countries that have the same economic background, but today these states are very different from each other. Of course, even in Soviet times, the republics differed in their specialization, but after gaining independence, many more changes occurred that affected the world market and the division of labor.
However, there are also common interests. For example, many participating countries remain dependent on the Russian sales market. This trend is economic and geopolitical in nature.
Throughout the whole time leading positions in the process of integration and stabilization of the EAEU and the Customs Union played Russian Federation. This was possible due to its stable economic growth until 2014, when prices for raw materials remained high, which helped finance the processes launched by the agreements.
Although such a policy did not predict rapid economic growth, it still assumed the strengthening of Russia's position on the world stage.
The history of relations between the parties to the agreements is similar to a series of compromises that were built on the basis of the role of Russia and the positions of partner countries. For example, there were repeated statements from Belarus about its priorities: a single economic space with equal prices for oil and gas, access to Russian government procurement.
To achieve these goals, the Republic increased tariffs on imported cars in the absence of its own production. Because of such measures it was necessary to install rules for certification of light industry goods, which hurt retail trade.
In addition, the standards adopted at the CU level were unified with the WTO model, despite the fact that Belarus is not a member of this organization, unlike Russia. Enterprises of the Republic have not received access to Russian import substitution programs.
All this served as obstacles for Belarus on the path to achieving its goals in full.
It should not be overlooked that the signed CU agreements contain various exceptions, clarifications, anti-dumping and countervailing measures, which have become an obstacle to the achievement of common benefits and equal conditions for all countries. At various times, virtually every participant in the agreement expressed disagreement with the terms contained in the agreements.
Although customs posts on the borders between the parties to the agreement were eliminated, border zones between countries have been preserved. Sanitary control at internal borders also continued. A lack of trust in interaction practice has been revealed. An example of this is the disagreements that flare up from time to time between Russia and Belarus.
Today it is impossible to say that the goals that were declared in the agreement on the creation of the Customs Union have been achieved. This is evident from the decrease in the turnover of goods within the customs area. There are also no economic development benefits when compared with the time before the agreements were signed.
But there are still signs that in the absence of an agreement the situation would deteriorate more rapidly. The manifestation of the crisis would be broader and deeper. A significant number of enterprises gain relative benefits by participating in trade relations within the Customs Union.
Methods for distributing customs duties among countries also indicate favorable trends for the Republic of Belarus and the Republic of Kazakhstan. Initially, a large share was planned for the budget of the Russian Federation.
The agreements signed by the parties benefited the production of automobiles. Duty-free sales of cars assembled by manufacturers in participating countries have become available. Thus, conditions have been created for the implementation of projects that previously could not succeed.
What is the Customs Union? Details are in the video.
In Astana (Kazakhstan) by the presidents of Russia, Belarus and Kazakhstan. Came into force on January 1, 2015.
: Armenia (since January 2, 2015), Belarus, Kazakhstan, Kyrgyzstan (since August 12, 2015) and Russia.
The population of the EAEU countries as of January 1, 2016 was 182.7 million people (2.5% of the world population). The gross domestic product in the EAEU countries in 2014 amounted to $2.2 trillion (3.2% in the structure of world GDP). Industrial production reached $1.3 trillion (3.7% of global industrial production). The volume of foreign trade in goods of the EAEU with third countries in 2014 amounted to $877.6 billion (3.7% of world exports, 2.3% of world imports).
The Eurasian Economic Union was created on the basis of the Customs Union of Russia, Kazakhstan and Belarus and the Common Economic Space as an international organization of regional economic integration with international legal personality.
Within the framework of the Union, freedom of movement of goods, services, capital and labor is ensured, as well as the implementation of a coordinated, coordinated or unified policy in key sectors of the economy.
The idea of creating the EAEU was laid down in the Declaration on Eurasian Economic Integration adopted by the presidents of Russia, Belarus and Kazakhstan on November 18, 2011. It sets out the goals of Eurasian economic integration for the future, including the declared task of creating the Eurasian Economic Union by January 1, 2015.
The creation of the EAEU means a transition to the next stage of integration after the Customs Union and the Common Economic Space.
The main goals of the Union are:
— creating conditions for the stable development of the economies of the member states in the interests of improving the living standards of their population;
— the desire to form a single market for goods, services, capital and labor resources within the Union;
— comprehensive modernization, cooperation and increasing the competitiveness of national economies in the global economy.
The highest body of the EAEU is the Supreme Eurasian Economic Council (SEEC), which includes the heads of member states. The SEEC considers fundamental issues of the Union's activities, determines the strategy, directions and prospects for the development of integration and makes decisions aimed at realizing the goals of the Union.
Meetings of the Supreme Council are held at least once a year. To resolve urgent issues of the Union's activities, extraordinary meetings of the Supreme Council may be convened at the initiative of any of the member states or the chairman of the Supreme Council.
The implementation and control over the execution of the EAEU Treaty, international treaties within the Union and decisions of the Supreme Council is ensured by the Intergovernmental Council (IGC), consisting of the heads of government of the member states. Meetings of the Intergovernmental Council are held as necessary, but at least twice a year.
The Eurasian Economic Commission (EEC) is a permanent supranational regulatory body of the Union with headquarters in Moscow. The main tasks of the Commission are to ensure conditions for the functioning and development of the Union, as well as to develop proposals in the field of economic integration within the Union.
The Union Court is a judicial body of the Union that ensures the application by member states and bodies of the Union of the Treaty on the EAEU and other international treaties within the Union.
The chairmanship of the SEEC, EMU and the EEC Council (the level of vice-premiers) is carried out on a rotational basis in the order of the Russian alphabet by one member state for one calendar year without the right of extension.
In 2016, Kazakhstan presides over these bodies.
Among the largest modern international associations is the Eurasian. It was formally established in 2014, but by the time the agreement on its creation was signed, the EAEU member states already had significant experience of interaction in the mode of active economic integration. What are the specifics of the EAEU? What is this - an economic or political association?
General information about the organization
Let's begin our exploration of the question posed by reviewing the key facts about the organization in question. What are the most noteworthy facts about the EAEU? What kind of structure is this?
The Eurasian Economic Union, or EAEU, is an association within the framework of international economic cooperation of several states of the Eurasian region - Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia. Other countries are expected to join this association, since the Eurasian Economic Union (EAEU) is an open structure. The main thing is that candidates for joining the association share the goals of this organization and show a willingness to fulfill the obligations stipulated by the relevant agreements. The creation of the structure was preceded by the establishment of the Eurasian Economic Community, as well as the Customs Union (which continues to function as one of the structures of the EAEU).
How did the idea of forming the EAEU come about?
As evidenced by a number of sources, the state that was the first to initiate the processes of economic integration that grew into the establishment of the EAEU was Kazakhstan. Nursultan Nazarbayev expressed a corresponding idea at a speech at Moscow State University in 1994. Subsequently, the concept was supported by other former Soviet republics - Russia, Belarus, Armenia and Kyrgyzstan.
The main advantage of a state being part of the Eurasian Economic Union is the freedom of economic activity of entities registered in it on the territory of all member countries of the union. It is expected that a single trade space will soon be formed on the basis of the EAEU institutions, characterized by common standards and norms for doing business.
Is there room for political interaction?
So, what is the EAEU, a purely economic structure, or an association that may be characterized by a political component of integration? At the moment and in the near future, as various sources testify, it would be more correct to talk about the first interpretation of the essence of the unification. That is, the political aspect is excluded. Countries will integrate in pursuit of economic interests.
There is evidence of initiatives regarding the creation of certain supranational parliamentary structures within the EAEU. But the Republic of Belarus and Kazakhstan, as evidenced by a number of sources, do not consider the possibility of their participation in building the respective countries. They want to maintain full sovereignty, agreeing only to economic integration.
At the same time, it is obvious to many experts and ordinary people how close the political relations of the countries that are members of the EAEU are. The composition of this structure is formed by the closest allies who have no publicly expressed fundamental differences regarding the difficult situation on the world stage. This allows some analysts to conclude that economic integration within the framework of the association under consideration would be very difficult if there were significant political differences between the countries participating in the association.
History of the EAEU
Studying some facts from the history of the association will help us better understand the specifics of the EAEU (what kind of organization it is). In 1995, the heads of several states - Belarus, the Russian Federation, Kazakhstan, and a little later - Kyrgyzstan and Tajikistan, formalized agreements establishing the Customs Union. On their basis, the Eurasian Economic Community, or EurAsEC, was established in 2000. In 2010, a new association appeared - the Customs Union. In 2012, the Common Economic Space opened - first with the participation of the states that are members of the Customs Union, then Armenia and Kyrgyzstan joined the structure.
In 2014, Russia, Kazakhstan, and Belarus signed an agreement on the creation of the EAEU. Later Armenia and Kyrgyzstan joined it. The provisions of the relevant document came into force in 2015. The EAEU Customs Union continues to function, as we noted above. It includes the same countries as the EAEU.
Progressive development
Thus, the member states of the EAEU - the Republic of Belarus, Kazakhstan, Russia, Armenia, Kyrgyzstan - began to interact long before the corresponding association was established in its modern form. According to a number of analysts, the Eurasian Economic Union is an example of an international organization with a progressive, systematic development of integration processes, which can determine the significant stability of the corresponding structure.
Stages of development of the EAEU
Several stages of development of the Eurasian Economic Union have been identified. The first is the establishment of a free trade zone, the development of norms according to which trade between the EAEU member countries can be carried out without duties. At the same time, each state retains independence in terms of conducting trade with third countries.
The next stage in the development of the EAEU is the formation of the Customs Union, which involves the formation of an economic space within which the movement of goods will be carried out unhindered. At the same time, foreign trade rules that are common to all member countries of the association should also be determined.
The most important stage in the development of the union is the formation of a single market. It is expected that it will be created within the framework of which it will be possible to freely exchange not only goods, but also services, capital and personnel - between the member states of the association.
The next stage is the formation of an economic union, the participants of which will be able to coordinate the priorities of implementing economic policy among themselves.
After the listed tasks are solved, it remains to achieve complete economic integration of the states included in the association. This involves the creation of a supranational structure that will determine priorities in building economic and social policies in all countries included in the union.
Advantages of the EAEU
Let’s take a closer look at the key benefits that EAEU members receive. We noted above that among the key ones is the freedom of economic activity of economic entities that are registered in any state of the union throughout the entire territory of the EAEU. But this is far from the only advantage of the state joining the organization we are studying.
EAEU members will have the opportunity to:
Take advantage of low prices for many goods, as well as reduced costs associated with the transportation of goods;
Develop markets more dynamically by increasing competition;
Increase labor productivity;
Increase the volume of the economy due to increased demand for manufactured goods;
Provide employment for citizens.
GDP growth prospects
Even for such economically powerful players as Russia, the EAEU is the most important factor in economic growth. Russia's GDP, according to some economists, may, thanks to the country's entry into the association under consideration, receive a very powerful growth stimulus. Other EAEU member countries—Armenia, Kazakhstan, Kyrgyzstan, and Belarus—can achieve impressive indicators of GDP growth.
Social aspect of integration
In addition to the positive economic effect, the EAEU member countries are expected to integrate in the social aspect as well. International business activities, as many experts believe, will contribute to the establishment of partnerships and stimulate strengthening the friendship of nations. Integration processes are facilitated by the common Soviet past of the peoples living in the countries of the Eurasian Economic Union. The cultural and, what is very important, linguistic proximity of the EAEU states is obvious. The composition of the organization is formed by countries in which the Russian language is familiar to the majority of the population. Thus, many factors can contribute to the successful solution of the tasks facing the heads of state of the Eurasian Economic Union.
Supranational structures
The Treaty on the EAEU has been signed, it’s up to its implementation. Among the most important tasks within the framework of the development of the Eurasian Economic Union is the creation of a number of supranational institutions, whose activities will be aimed at promoting economic integration processes. According to a number of public sources, the formation of some basic institutions of the EAEU is expected. What structures could these be?
First of all, these are various commissions:
Economics;
For raw materials (she will set prices, as well as quotas for goods and fuel, coordinate policies in the field of precious metals circulation);
For interstate financial and industrial associations and enterprises;
By entering the monetary unit for calculations;
On environmental issues.
It is also planned to create a special Fund, the competence of which will include cooperation in a variety of areas: in the economy, in the field of development of science and technology. It is expected that this organization will deal with issues of financing various studies and help participants in cooperation in resolving a wide range of issues - legal, financial or, for example, environmental.
Other important supranational structures of the EAEU that are planned to be created are the International Investment Bank, as well as the arbitration of the Eurasian Economic Union.
Among the successfully created associations that are part of the governance structure of the EAEU - Let us study the features of its activities in more detail.
Eurasian Economic Commission
It can be noted that the EEC was created in 2011, that is, even before the agreement on the creation of the EAEU was signed. It was founded by Russia, Kazakhstan and Belarus. Initially, this organization was created to manage processes at the level of such a structure as the Customs Union. The EAEU is a structure in the development of which the Commission is called upon to directly participate now.
The EEC has established a council and a board. The first structure should include deputy heads of government of the member states of the association. The board should consist of three people from the EAEU member countries. The Commission provides for the creation of separate departments.
The Eurasian Economic Commission is the most important, but not the most important supranational governing body of the EAEU. It is subordinate to the Supreme Eurasian Economic Council. Let's look at the key facts about him.
This structure, like the Eurasian Economic Commission, was created several years before the states signed the agreement on the creation of the EAEU. Thus, for a long time it was considered a supranational body within the structure of the Customs Union, as well as the Common Economic Space. The Council is formed by the heads of the EAEU member states. It should meet at the highest level at least once a year. The heads of government of the member countries of the association must meet at least 2 times a year. A peculiarity of the functioning of the Council is that decisions are made in a consensus format. The approved provisions are mandatory for implementation in the EAEU member countries.
Prospects for the EAEU
How do analysts assess the prospects for the development of the EAEU? We noted above that some experts believe that simultaneously with economic integration, political rapprochement of the member states of the association is inevitable. There are experts who share this point of view. There are experts who completely disagree with her. The main argument of those analysts who see prospects for the politicization of the EAEU is that Russia, as the leading economic player in the association, will in one way or another influence the decisions made by the authorities of the EAEU member states. Opponents of this point of view believe that, on the contrary, it is not in the interests of the Russian Federation to show excessive interest in the politicization of the corresponding international association.
Provided that a balance is maintained between the economic and political components in the EAEU, the prospects for the union, based on a number of objective indicators, are assessed by many analysts as very positive. Thus, the total GDP of the member states of the structure under consideration will be comparable to the indicators of the leading economies of the world. Taking into account the scientific and resource potential of the EAEU, the volume of economic systems of the member countries of the union can grow significantly in the future.
Global collaboration
According to a number of analysts, the prospects for cooperation with the EAEU are attractive for countries that seem to be far from the economic space formed by the countries that signed the EAEU treaty - Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia. For example, Vietnam recently signed a free trade agreement with the EAEU.
For cooperation Syria, Egypt. This gives analysts reason to say that the Eurasian Economic Union can become a powerful player in the world market.
The Republic of Kazakhstan is an initiator and active participant in many integration processes. The idea of Eurasian integration was first voiced by the President of the Republic of Kazakhstan N.A. Nazarbayev in 1994. At first, this initiative, which at that time seemed revolutionary, was received ambiguously. However, over time it received greater support and development.
As a result, at the first stage the Customs Union was created, then the Common Economic Space, and on January 1, 2015, the Eurasian Economic Union was launched, the founders of which were Belarus, Kazakhstan and Russia. In the same year, the Republic of Armenia and the Kyrgyz Republic became full members of the EAEU.
Along with the European Union, the formation of which began in the middle of the 20th century, the EAEU became the second example of a full-fledged economic union in the world.
The EAEU is not a political association. During the work on the Treaty on the Union, the member states of the EAEU consciously refused to politicize it and include issues affecting national sovereignty within the competence of the Union. Within the framework of the EAEU, issues of exclusively economic cooperation are considered, and the principle of sovereign equality, equal rights and consideration of the national interests of its member states is ensured.
The EAEU is an international organization for regional economic integration, which is based on the agreements reached by states within the framework of the Customs Union and the Common Economic Space.
Within the framework of the EAEU, freedom of movement of goods, services, capital and labor is ensured, the implementation of a coordinated, agreed or unified policy in the sectors of the economy defined by the Treaty on the EAEU of May 29, 2014 and international treaties within the Union.
The main goals of the EAEU are to create conditions for the stable development of the economies of the Union member states in the interests of improving the living standards of their population; the desire to form a single market for goods, services, capital and labor within the Union, as well as comprehensive modernization, cooperation and increasing the competitiveness of national economies in a global economy.
The economic potential of Eurasian integration is very high. The combined economies of the states are more than US$2.2 trillion, with a population of more than 182 million people.
In conditions of continental “isolation”, the most important systemic aspect for the growth of the economy of Kazakhstan and its diversification is the reduction of transport costs. Within the framework of the EAEU, agreements on access to infrastructure and domestic tariffs of partner countries for the transportation of goods allowed Kazakh businesses to reduce transport costs. Accordingly, the competitiveness of Kazakhstani products in foreign markets has increased.
Unified principles of technical regulation, a common system of veterinary, sanitary and phytosanitary safety allow the movement of products across the territory of the Member States according to uniform requirements and on equal terms.
Citizens and businesses of the EAEU member states have already begun to feel the benefits of the free movement of labor. Ordinary citizens of the Union countries can work in any of the member states without obtaining work permits, and use educational documents without the procedure for their recognition.
In 2016, a package of documents was adopted necessary for the formation of a single market for medicines and medical devices, which will increase the volume of production of Kazakhstani pharmaceutical products, create additional jobs, and for consumers - reduce prices and improve the quality of medicines produced in the territory of the Union member states.
By 2019, a common electricity market will be formed, which will provide an effective pricing system, increase the volume of electricity production and the export component of the countries' energy systems. Within the framework of the common electricity market, the likelihood of electricity shortages will decrease.
Within the EAEU, agreements were reached on the formation of a common market for oil and petroleum products by 2025. It provides for the non-application of export customs duties and restrictions in mutual trade. In addition, by 2025, access to gas transportation infrastructure will be provided. Kazakhstan is interested in resolving these issues.
Agreements on access to the infrastructure of partner countries will reduce transport costs for our exporters. Accordingly, the competitiveness of Kazakhstani products, which are exported, including to European countries, will increase. There are interconnected supply systems for oil and petroleum products between the EAEU member states. The application of common terms of trade without barriers will ensure stability and balance in the functioning of these systems.
In the context of a slowdown in global economic growth, Kazakhstan’s participation in Eurasian economic integration creates the necessary foundation for diversifying the economy and increasing labor productivity.
In addition, efforts in the activities of the EAEU are focused on intensifying international contacts. The expansion of trade and economic ties with major partners and new growing markets should become an impetus for increasing the role of the EAEU throughout the continent. Evidence of the attractiveness of the EAEU is the interest of more than 30 countries in signing agreements with the EAEU on the creation of a free trade zone.
Currently, more than 25 memoranda of cooperation and interaction of the EAEU have been signed with various countries, including Mongolia, Chile, Peru, Singapore and Cambodia.
On October 5, 2016, the Free Trade Agreement with Vietnam came into force, which is the first preferential agreement within the EAEU. There is a mandate to hold negotiations with China, Israel and Serbia. At a meeting of the Supreme Council on December 26, 2016 in St. Petersburg, decisions were approved to begin negotiations on concluding free trade agreements with Iran, India, Egypt and Singapore. Partners from South America and South Korea are also showing interest in cooperation with the Union.
A search for common ground with the European Union and the Shanghai Cooperation Organization is underway. A course has been taken to integrate the EAEU and the Chinese Silk Road Economic Belt initiative.
In general, Kazakhstan always advocates the progressive development of integration across the wide expanse of Eurasia, which, in our opinion, gives a powerful multiplier impetus to global economic development.
Cooperation within the EAEU is carried out in such areas as:
Customs tariff and non-tariff regulation;
Customs regulation;
Technical regulation;
Sanitary, veterinary-sanitary and quarantine phytosanitary measures;
Transfer and distribution of import customs duties;
Establishment of trade regimes in relation to third parties;
Statistics of foreign and mutual trade;
Macroeconomic policy;
Competition policy;
Industrial and agricultural subsidies;
Energy Policy;
Natural monopolies;
State and (or) municipal procurement;
Mutual trade in services and investments;
Transport and transportation;
Monetary Policy;
Intellectual property;
Work migration;
Financial markets (banking, insurance, foreign exchange market, securities market).
The bodies of the EAEU are the Supreme Eurasian Economic Council (heads of member states), the Eurasian Intergovernmental Council (heads of government of member states), the Eurasian Economic Commission (Commission), as well as the EAEU Court, which is located in Minsk.
The commission consists of 2 levels – the Council and the Collegium. The Council is represented by five deputy prime ministers of the member states. The Commission's board consists of 10 people, 2 representatives from each state. The location of the Commission is Moscow. A representative of the Republic of Armenia, Tigran Surenovich Sargsyan, was elected Chairman of the Board for a four-year period (from February 1, 2016).
All decisions taken by the Supreme, Intergovernmental Councils and the Commission Council are made by consensus, which allows the interests of each member state to be taken into account.
The Board of the Commission has a mechanism for making decisions by consensus and qualified majority. Decisions are made on the most sensitive issues by consensus, and on the rest - by a qualified majority of two-thirds of the votes.
Moreover, any decisions made by the Collegium can be revised by higher bodies of the Union - the Council of the Commission, the Intergovernmental Council, the Supreme Council. And as a last resort, any issue can be challenged in the EAEU Court.
At the proposal of the Republic of Kazakhstan, in the structural divisions of both the Commission and the Court, the positions of directors and deputy directors are occupied by representatives of the Member States, taking into account the principle of their equal representation.
Currently, the Commission consists of 25 departments, in which each party is represented by 5 directors and 13 deputy directors of the Commission's departments. The remaining employees are appointed in proportion to the state's share in the financing of these bodies. The staff size of the Commission is 1071 people.
In general, the activities of the EAEU are aimed at solving problems of improving the well-being and quality of life of citizens of the member states. The EAEU is a powerful incentive for the development and comprehensive modernization of the economies of its member states and bringing them to leading positions in the global world.
The Customs Union is an organization that has legal personality obtained under the Treaty on the Economic Union of the Eurasian States. The document was signed on May 29, 2014.
Members of the Customs Union
The creation of the Union is aimed at ensuring the solution of the following issues:
- To help coordinate, harmonize, and develop a unified policy regarding all sectors of the economy.
- Ensure free movement of both labor and finance, services, and goods.
Currently, the following states are participants in the Customs Union:
- Russia,
- Kyrgyzstan,
- Kazakhstan,
- Armenia,
- Belarus.
Also, Tunisia, Syria and Turkey stated that they intend to join the Customs Union. But so far, these countries have not taken any concrete steps for this.
The evolution of the process will help to better understand the prerequisites and goals of creating a TS.
- The first agreement, which became the basis for the creation of the Union, was signed by Belarus, Kazakhstan and Russia in 1995. Later, the agreement was signed by representatives of Uzbekistan, Tajikistan, and Kyrgyzstan.
- 2007 Russia, Kazakhstan and Belarus have concluded the following agreement. It said that the listed countries agreed to build a Customs Union with a single customs territory.
- year 2009. The previously signed document was supplemented by many additional international treaties, there were more than forty of them. In addition, it was decided that from the first days of 2010 a single customs space will be formed. It will include the territory of Russia, Belarus and Kazakhstan.
- 2010 A common code was adopted for the listed states. At the same time, a single tariff comes into effect.
- In 2011, the removal of customs controls between the countries of the Union. It was moved to the outer borders.
- From 2011 to 2013. Development and adoption of legislative norms common to the CU countries. In addition, a unified law on product safety was developed.
- In 2014, the CU was replenished with one more country, Armenia, and the following year Kyrgyzstan also became a member of the Union.
In other words, integration processes were developed throughout the entire period. As a result, general norms of legislation and customs tariffs should be developed so that it would be possible to carry out trade operations with those states that were not included in the Customs Union.
The main goal pursued by the powers that signed the Treaty on the Eurasian Economic Union is to strengthen economic ties. First of all, strengthening ties was meant between the participating countries, and then with those states that were part of the Soviet Union. And also the task is to restore the once existing technological and economic chains. But this will have to happen taking into account the current economic and political situation of each state.
Who runs the EES?
The following structures coordinate and manage the work of the EAEU bodies:
- Highest Eurasian EC. This is the name given to a supranational body. It consists of the heads of countries that have become members of the CU. The meeting of the Supreme Council takes place annually. It makes regular decisions that all participating countries must implement. In addition, the council is responsible for determining the composition and powers of various CU structures.
- Eurasian Commission on Economics. This is the regulatory body of the Union, which works constantly. In addition to general issues, the commission also resolves those related to customs regulation and international trade. It also develops and provides conditions for the development of the vehicle and its normal operation.
The powers of the commission are quite extensive; it is authorized to resolve almost all issues:
- Technical regulation.
- Customs administration.
- Trade statistics.
- Procurement
- Monetary policy.
- Macroeconomic policy.
- Concerning transportation, transport.
- Subsidies for agricultural or industrial enterprises.
- Financial markets.
- Migration policy.
- Trade regime with third countries.
- Competition policies, energy.
- Copyright compliance.
- Measures regarding sanitary/veterinary standards.
- Natural monopoly and other areas.
Governing bodies of the Eurasian Economic Union
In addition, the duties of the commission include ensuring the implementation of international treaties included in the legal framework of the Union.
The Commission is competent to approve documents and make decisions that the countries of the Eurasian Economic Union will be obliged to implement.
CU goals and their implementation
The first goal of the CU concerned issues related to increasing markets where Union members could sell the goods and services they produced. So that, first of all, sales grow within it.
For this purpose the following was proposed:
- Cancel internal customs duties. Thanks to this, the price attractiveness of products produced by member countries of the Union could increase.
- Cancel customs control and paperwork for the movement of products. This helped speed up the turnover of goods within the Union.
- Adopt general requirements for veterinary safety standards and sanitary and epidemiological issues. It was proposed to obtain this based on the results of joint tests.
In order to unify the approach to safety and quality, the participating countries signed an agreement that all products offered for sale must have a certificate. Its form was specified in one of the Customs Union documents.
This agreement contains more than 30 regulations. All of them relate to the quality of services/products and their safety. Moreover, a certificate issued by one member state of the Union remains valid in other member states.
The following TS goals:
- Create all conditions so that the member countries of the Union can primarily sell their own products.
- Protect the domestic vehicle market.
Unfortunately, to date, no mutual understanding has been reached between the states on the listed points. Each of them has its own priorities regarding the development of production and intends to primarily protect its own interests, and not take care of the production of its neighbors. Because of this, both importing enterprises and the population suffer.
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