Fifth Session, Geneva, 18-19 June 2012 Eurasian Economic Commission Republic of Belarus, Republic of Kazakhstan, Russian Federation United Nations Economic Commission for Europe Committee on Trade Fifth Session, Geneva, 18-19 June 2012

The Eurasian Economic Union History of the Eurasian Integration Establishment of the Commission of the Customs Union / Devolution of some powers of national authorities to the CCU Abolishment of customs clearance procedure of the goods in member-countries’ mutual trade Launching the mechanism of enrolment and allocation of import customs duties Entering into force of the Customs Code of the CU Launching of the Common Economic Space: entering into force of the CES agreements The Eurasian Economic Union Treaty on the CU and the CES 1995 1999 2000 2007 Jan.2010 July 2010 July 2011 Jan.2012 Feb.2012 2015 Establishment of the Eurasian Economic Community (EurAsEC) responsible for efficient promoting of the CU and the CES forming International organization: legal capacity Final transfer of customs control to the external borders of the CU - forming the common customs territory of member-countries Establishment of the Eurasian Economic Commission - (legal successor of the Commission of the Customs Union) Agreement on CU (RB and RF) Agreement on the CU (RB, RK,RF) Launching the Customs Union within EurAsEC: common tariff and non-tariff regulation В настоящий момент завершено формирование Таможенного союза и заявлено о переходе к следующему этапу интеграционного строительства – Единому экономическому пространству, начало функционирования которого было провозглашено 1 января 2012 года в связи со вступлением в силу пакета международных договоров, формирующих правовую основу ЕЭП. 2

Eurasian Economic Union Key Phases of Eurasian Integration Stages Main features Eurasian Economic Union Unified macroeconomic, tax, monetary, trade and customs policies Common Economic Space Common economic regulation procedures Common infrastructure Coordinated tax, monetary and customs policies Free movement of goods, services, capital and labor force CES Agreement 16 CES Agreement17 … CES Agreement CES Agreement 2 Customs Union Common customs territory Common customs code Common trade regime with third countries Common customs tariff and non-tariff regulation measures Abolition of customs clearance of goods in mutual trade and transition of customs control to external boards Legal acts forming the legal base of the Customs Union in the framework of Eurasian Economic Community (EurAsEC) Treaties Agreements … CIS Free Trade Area Non-application of customs duties and economic restrictions in mutual trade (except for trade remedies) - with exemptions 3

Eurasian Economic Commission The Commission is a single permanent regulatory body of the Customs Union (hereinafter the CU) and the Common Economic Space (hereinafter the CES). The main goal of the Commission is “to provide for the operation and the evolution of the CU and the CES, and to carry out further economic integration initiatives within the framework of the CU and CES” 4

The CU Member States CU Member States: Republic of Belarus, Republic of Kazakhstan , Russian Federation Surface: 20 206 350 km² Population: 173,302 mln. Total GDP: 2 bln. $ US (4 % of world GDP) Total volume of external trade: 913 bln. $ US 5

Agreements Establishing the Common Economic Space On Unified Principles and Rules of Technical Regulations of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation On Cooperation in Counteracting Illegal Labor Migration from Third Countries On Legal Status of Migrant Workers and Members of Their Families On Coordinated Macroeconomic Policy On Coordinated Principles of Currency Policy On Creation of Conditions at Financial Markets Necessary to Ensure Free Movement of Capital On Unified Principles and Rules of Competition On State (Municipal) Procurement 17 6

Agreements Establishing the Common Economic Space On Unified Principles of Regulation in Protecting Intellectual Property Rights On Unified Rules of State Support for Agriculture On Unified Rules on Granting Industrial Subsidies On Trade in Services and Investment in the CES Member States On Unified Principles and Rules of Regulation of Natural Monopolies On Access to Rail Transport Including Fundamental Principles of Tariff Policy On Access to Natural Monopolies in the Power Industry Including Pricing and Tariff Policy On Administration, Operation and Development of the Common Oil and Oil Products Markets On Rules of Access to Services of Natural Monopolies in Gas Transportation by the Gas-transport Systems including Fundamental Principles of Tariff Policy 17 7

share in the global export in 2010 The CU and the CES share in the global export in 2010 Необходимо определиться с доменом и наименованием Варианты Предпочтительные варианты Возможность регистрации нового домена 8

Growth Rate of Customs Union Economies in 2009-2011 Необходимо определиться с доменом и наименованием Варианты Предпочтительные варианты Возможность регистрации нового домена 9

Bodies of the CU and the CES Supreme Eurasian Economic Council: level of Heads of States - level of Heads of Government Supreme Body of the CU and the CES EurAsEC Court - defines the strategy and the objectives of further development of the CU and the CES Dispute settlemnt body Structural units of the Commission Eurasian Economic Commission (the Commission) The Common permanent regulatory body of the CU and the CES Council of the Commission: 3 Members of the Council Departments of the Commissio - ensures functioning and development of the CU and the CES, carries out the initiatives on further economic integration Board of the Commission: Chairperson + 8 Members of the Board Consulting bodies of the Commission Missions of the Commission in member countries, in third countries and at the international organizations (established by the decision of the Supreme Eurasian Economic Commission) - ensure the interaction with national authorities 10

Council of the Commission Eurasian Economic Commission Council of the Commission three members of the Council (one Deputy Prime Minister representing each Member State) Republic of Belarus – Sergei Rumas Republic of Kazakhstan – Kairat Kelimbetov Russian Federation – Igor Shuvalov 11

Areas of Competence of the Eurasian Economic Commission under the Treaty on the EEC tariff and non-tariff regulation customs administration technical regulation sanitary, veterinary and phytosanitary measures enrolment and allocation of import customs duties establishment of trade regime with third countries statistics of external and internal trade macroeconomic policy competition policy industrial and agriculture subsidies energetic policy natural monopolies state and municipal purchases internal trade in services and investment transport and transportation currency policy protection of intellectual property and copyright migration policy financial markets (banking, insurance, foreign exchange market, stock market) other areas The EEC performs its activity within the powers provided by the Treaty on the EEC, by international agreements forming the legal base of the CU and the CES and by decisions of the Supreme Eurasian Economic Council Государства-члены ТС и ЕЭП передали Комиссии полномочия национальных органов власти в указанных сферах. Это означает, что разработкой и имплементацией законодательства ТС и ЕЭП, регулирующего указанные сферы, занимается Комиссия. Национальные органы власти могут привлекаться к процессу разработки законодательных актов в установленном порядке (порядок описан ниже). 12

Board of the Commission Eurasian Economic Commission Board of the Commission Chairman of the Board Viktor Khristenko Tatiana Valovaya Member of the Board-Minister in charge of development of integration and macroeconomics Valery Koreshkov Member of the Board-Minister in charge of technical regulation Andrey Slepnev Member of Board-Minister in charge of trade Danial Akhmetov Member of the Board-Minister in charge of energy and infrastructure Sergey Sidorsky Member of the Board-Minister in charge of industry and agriculture Nurlan Aldabergenov Member of the Board-Minister in charge of competition Vladimir Goshin Member of Board-Minister in charge of customs cooperation Timur Suleimenov Member of the Board-Minister in charge of economics and financial policy 13

Decision making process within the CU and the CES The Supreme Council takes decision on the issue Decisions taken by the CU bodies become the integral part of the legal base of the CU and the CES Supreme Eurasian Economic Council 5. The issue is submitted to the Supreme Eurasian Economic Council Council of the Commission The Council takes decision on issues within its competency 4. The issue is submitted to the Council of the Commission Board of the Commission National authorities The Board takes decision on issues within its competency 3. The issue is submitted to the Board 2. Member States analyze the issue and give their comments Профильные департаменты разрабатывают предложения по вопросам своей компетенции и передают их на рассмотрение соответствующего консультативного органа Комиссии. Консультативный орган Комиссии, в состав которого входят представители государств-членов и представители Комиссии, представляют свои замечания по вопросу. После учета замечаний согласованный вопрос передается на рассмотрение Коллегии с проектом соответствующего решения Коллегии. Если вопрос относится к сфере компетенции Коллегии, она принимает решение по данному вопросу, которое становится частью нормативно-правовой базы ТС. Если вопрос относится к сфере компетенции более высокого органа ТС, то Коллегия одобряет проект решения этого органа и передает вопрос на его рассмотрение. Consulting bodies of the Commission 1. The departments analyze the initiatives within their competency Departments of the Commission 14

Main directions of the integration process (Declaration on Eurasian economic integration by the Presidents of the CU member countries, December 2011) Ensuring effective functioning of common market (free movement of goods, services, capital and labor force) Coordinated industrial, transport, energetic and agriculture policies, development of industrial cooperation including potential creation of joint international corporations Further convergence of national legislations and their unification in spheres covered by the agreements establishing the CES Elaboration and realization of coordinated macroeconomic policy, transition to convergence of main macroeconomic indicators of member countries, development of cooperation in monetary field Intensification of cooperation in the field of economic security Cooperation in the field of migration policy Ensuring the compliance of education standards Comprehensive cooperation in the field of culture, parliamentary and business interaction Further development of regional and border cooperation, creating effective structures of regional cooperation Enhancement and development of supranational bodies Cooperation in the field of foreign policy on questions of mutual interest 15

of treaties and agreements achieved the Eurasian Economic Union Regulatory Legal Framework of the Eurasian Economic Union Single Codified Document Legal Base of the EurAsEC CODIFICATION of treaties and agreements achieved (no later than 2015) TREATY on the Eurasian Economic Union Legal Base of the Customs Union Legal Base of the Common Economic Space Principles of codification Необходимо определиться с доменом и наименованием Варианты Предпочтительные варианты Возможность регистрации нового домена Harmonization of existing legal norms Systematization of existing legal norms Elimination of inconsistencies and contradictions of legal norms Filling gaps and repealing obsolete norms Compliance with the WTO Agreement 16

The CU and the WTO membership Declaration on the Eurasian economic integration by the three Presidents (December 2011): «In their practical cooperation member countries of the CES are guided by norms and rules of the WTO and confirm the importance of the accession of all three states to the Organization» The Russian Federation becomes a member of the WTO since July of 2012 Treaty on the Functioning of the CU in the Framework of Multilateral Trade System of 19 May of 2011 enters into force July 2012 2012 – 2013 … 17

The Treaty on the Functioning of the CU in the Framework of the Multilateral Trading System Article 1. 1.1. Since the date of accession of any CU Party to the WTO, the provisions of the WTO Agreement, as set-out in its Protocol of Accession, including the commitments undertaken by that CU Party as part of the terms of its accession to the WTO, which related to matters that the Parties had authorised CU Bodies to regulate in the framework of the CU, as well as to the legal relationships regulated by the international treaties constituting the legal framework of the CU, became an integral part of the legal framework of the CU. 1.3. Upon the subsequent accession of another Party to the WTO, the commitments undertaken by that Party as part of the terms of its accession to the WTO, which relate to matters that the Parties have authorized Customs Union Bodies to regulate in the framework of the Customs Union, as well as the legal relationships, regulated by the international treaties, constituting the legal framework of the Customs Union, shall also become a part of the legal framework of the Customs Union. The Party acceding to the WTO shall notify other Parties and coordinate with them actions in respect of undertaking the commitments as a term of its accession, which require amendment to the legal framework of the Customs Union. 18

The Treaty on the Functioning of the CU in the Framework of the Multilateral Trading System 1.4. In case of divergence between the consolidated results of import tariff negotiations, achieved in the course of the accession to the WTO, the Parties concerned shall consult each other immediately and enter into negotiations with interested WTO Members expeditiously with a view to harmonize import tariffs rates. The Parties shall coordinate their positions and express the intention to follow the respective provisions of the WTO Agreement, that are applied in case of tariff harmonization by the customs unions. The rates of the Common Customs Tariff of the Customs Union shall not exceed the import tariff rates agreed as a result of harmonization unless otherwise is provided for in the WTO Agreement. Article 2. 2.1. CU Parties shall adopt measures to adjust the CU legal framework and decisions of CU Bodies to comply with the WTO Agreement as set-out in the Protocol of Accession of each Party. Until those measures were adopted... the WTO Agreement would always prevail over respective provisions of treaties concluded within the framework of the CU and of decisions adopted by its Bodies. 19

The official site of the CU and the CES: www.tsouz.ru For information: The official site of the CU and the CES: www.tsouz.ru Commission headquarters: 3/5 building 1, Smolensky boulevard , Moscow, 119121, Russian Federation 20