April 2013

Trade Policy Priorities Trade Policy Multilateral Level UNWTOAPECCIS Bilateral Level EUChinaUkraineViet NamEFTA New Zealand Tackling Trade Barriers Deepening relations with Main Trade Partners Preparing Free Trade Agreements | 2

| 3 CU/SES External Trade in * *Data in $ bln. Geography of Trade (2012) Geography of Trade (2012, oil/gas excluded)

| 4 Main Trade Partners

| 5 CU/SES Turnover Dynamics with the EU *Data in $ bln / 2011 (%) ExportImportTurnover CU/SES Trade with the EU ,8 CU/SES Trade with Third Countries ,2 EU Share in CU/SES Total External Trade 57,044,052,3

| 6 Structure of the CU/SES Trade with the EU* ImportExport * Data for 2011

The Customs Union Member States  CU Member States: Republic of Belarus Republic of Kazakhstan Russian Federation  Surface: 20 mln. km²  Population: 169 mln.  Total GDP: 2,7 trn. $ US (4 % of world GDP)  Total volume of external trade: 939 bln. $ US | 7

| 8 Universal Stages of Regional Integration Eurasian Economic Union January 1 st 2015 July 1 st 2010 January 1 st 2012 April 15 th 1994

SUPREME EURASIAN ECONOMIC COUNCIL - level of Heads of State - level of Heads of Government EURASIAN ECONOMIC COMMISSION (the Commission) Council of the Commission: 3 Members of the Council Board of the Commission: Chairman + 8 Members of the Board (Ministers) EurAsEC Court Supreme Body of the CU and the SES The Common permanent regulatory body of the CU and the SES - defines the strategy and the objectives of further development of the CU and the SES - ensures functioning and development of the CU and the SES, carries out the initiatives on further economic integration Structural units of the Commission - ensure the interaction with national authorities Departments of the Commission Consultative bodies of the Commission Governing bodies of the CU/SES | 9

Eurasian Economic Commission Chairman of the Board Viktor Khristenko Board of the Commission Nurlan Aldabergenov Member of the Board - Minister in charge of competition Timur Suleimenov Member of the Board - Minister in charge of economy and financial policy Sergey Sidorsky Member of the Board - Minister in charge of industry and agribusiness Andrey Slepnev Member of the Board - Minister in charge of trade Valery Koreshkov Member of the Board - Minister in charge of technical regulation Vladimir Goshin Member of the Board - Minister in charge of customs cooperation Danial Akhmetov Member of the Board - Minister in charge of energy and infrastructure Tatiana Valovaya Member of the Board - Minister in charge of development of integration and macroeconomics Departments Advisory bodies Council of the Commission Belarus – Sergei Rumas Kazakhstan – Kairat Kelimbetov Russia – Igor Shuvalov Departments | 10

Decision making process within the CU and the SES Departments of the Commission Consulting bodies of the Commission Council of the Commission Board of the Commission Supreme Eurasian Economic Council 1. The departments analyze the initiatives within their competency 3. The issue is submitted to the Board 4. The issue is submitted to the Council of the Commission 2. Member States analyze the issue and give their comments 5. The issue is submitted to the Supreme Eurasian Economic Council Decisions taken by the CU bodies become the integral part of the legal base of the CU and the SES The Board takes decision on issues within its competency The Council takes decision on issues within its competency The Supreme Council takes decision on the issue National authorities | 11 All Regulative Decisions

Coordinated/Single Trade Policy ( ) Elements of the single trade policy: Adoption and conduction of the Single Customs Tariff and Commodity Nomenclature of the Customs Union; Carrying out investigations and implementation of trade defense instruments (anti-dumping, countervailing, safeguard measures); Establishment of trade regimes with third countries; Establishment of a single Generalized System of Preferences (GSP); Establishment of a unified system of tariff preferences. multilateral format (WTO and other Intl. org.) preferential trade agreements (FTA) Currently a coordinated trade policy with elements of single trade policy being conducted. The Member States and the Commission make decisions conjointly. At the same time a part of authorities to form trade policy has been already transferred to the supranational body (Eurasian Economic Commission) and has been fulfilled by it. Trade policy is a range of measures, aimed at execution of foreign-economic activity tasks by means of economic and administrative instruments. | 12

To be done in : Development of main directions for trade policy up to 2020, which would contribute to the sustainable economic development and integration of the CU/SES Member States; Coordination of the CU/SES Member States’ trade policy; Improvement of the CU/SES legal framework in the spheres of tariff and non-tariff regulation; Elaboration and announcement in WTO of a common position of the CU/SES Member States on the issues of the Commission’s competence; Further work on establishment of bilateral contacts and formalization of cooperation with third countries, including negotiations on free trade agreements; Further forming of platforms for discussions on trade policy with third countries, building closer relationships with regional and international organizations. Coordinated/Single Trade Policy ( ) | 13

Total unification of the terms of trade with third countries on the basis of the most favoured nation status (MFN) or preferential agreements concluded with third countries on behalf of the Eurasian Economic Union and the Member States. Conducting trade policy on the basis of common rules and principles, laid down in the Treaty on Establishing Eurasian Economic Union; Establishment of supranational competencies for single trade policy implementation; Execution of international trade with third countries on the basis of Foreign Economic Activity Commodity Nomenclature and Unified Customs Tariff of the Customs Union; Elaboration and announcing in the WTO of the common position of the Member States of the CU/SES; Realization of the common tariff and non-tariff policy, including measures on domestic market defence; Conducting trade negotiations and concluding international agreements on behalf of the CU/SES, including preferential trade agreements. Single Trade Policy (from ) | 14

Foreign Trade Issues  Tariff regulation  Non-tariff regulation  Customs administration  Technical regulation  Sanitary, veterinary, and phytosanitary measures  Statistics of external and mutual trade  Trade remedies  Establishment of trade regimes for third countries The Competence of the Eurasian Economic Commission | 15 Other Issues  Macroeconomic policy  Competition policy  Industrial and agricultural subsidies  Energy policy  Transport and transportation  Natural monopolies  State and (or) municipal procurement  Mutual trade in services and investment  Financial markets (banking, insurance, foreign exchange market, stock market)  Currency policy  Protection of intellectual property and identification means for goods, work and services  Labor migration

EEC and GATT: Tariff Regulation | 16 Competence of the Commission:  Determining and adjusting:  Import tariff rates  Tariff preferences  Tariff exemptions  Rules of origin  Rules and guidelines on customs valuation Competence of the Member States:  Application of regulative norms set by EEC  Regulatory enforcement Applied tariff rates | 16

| 17 Competence of the Commission:  Taking decisions to introduce and cancel non-tariff measures including:  Licensing  Quantitative restrictions (such as those in accordance with Article XX of GATT)  Exclusive rights to export/import  Export and import quotas  Determining the procedure of application of non-tariff measures  Allocating export and import quotas between the Member States, and, if necessary, allocating/distributing import quotas between third countries Competence of the Member States:  Applying regulative norms set by EEC  Regulatory enforcement  Allocating quotas between national importers or exporters | 17 EEC and GATT: Non-Tariff Regulation

| 18 EEC and GATT: Trade Remedies Competence of the Commission:  Adopt decisions on imposition, extension, review or termination of trade remedy measures by the Customs Union to third countries  Conduct investigations (anti-dumping, countervailing and safeguard) and holding consultations with interested parties  Investigating authority – Department for Internal Market Defence of the EEC  Monitor the application of the relevant decisions of the Commission Competence of the Member States:  Implementation of trade remedy measures (collection of duties, administration of quotas) | 18

| 19 Competence of the Commission:  Developing and adopting:  Technical Regulations of the Customs Union  Common List of Products Subject to Technical Regulation  Criteria for Conformity Assessment Bodies and Test Laboratories  Rules for Conformity Assessment  Common Forms for Certification and Declaration of Conformity Competence of the Member States:  Regulatory Enforcement  Developing and Adopting:  National standards (non-obligatory)  Rules, norms and recommendations in the sphere of standardization  Standards adopted by organizations (standards of enterprises, scientific, technical, engineering institutions and other societies)  Sets of rules, (voluntary documents, elaborated and approved by the national bodies related to standardization) | 19 EEC Standards and Safety Technical Regulation

| 20 Competence of the Commission:  Developing and adopting:  List of Goods Subject to Veterinary Control  List of Goods Subject to Sanitary-Epidemiological Supervision  List of Products Under Quarantine (regulated goods, regulated articles of regulated products)  Common Veterinary Requirements  Uniform Sanitary-Epidemiological and Hygienic Requirements for Products Subject to Sanitary-Epidemiological Supervision  Order and Procedures of Veterinary Control  Common Forms of Documents Confirming the Safety of Products Competence of the Member States:  Implementation of Sanitary and Epidemiological Surveillance, Phytosanitary and Veterinary Control (Surveillance)  Carrying out Joint Inspections of Objects and Sampling Goods (Products) Subject to Veterinary Control (Surveillance)  Development and Implementation of temporary veterinary sanitary and phytosanitary measures and requirements | 20 EEC Standards and Safety Sanitary and Phytosanitary Measures

| 21 Competence of the Commission:  Approving common rules for customs operations in the Customs Union  Customs declaring and clearance  Customs examination  Approving customs documents forms and the rules of their fulfillment  Forms of customs declaration, declaration of customs value, passenger customs declaration, acts of customs control, etc. Competence of the Member States:  Determining specific requirements for customs operations (when it is permitted by the Customs Code)  Regulatory enforcement EEC Customs Administration

The Russian Federation became a member of the WTO in August of 2012 Declaration on the Eurasian Economic Integration by the three Presidents (November 2011): «In their practical cooperation, the member countries of the SES are guided by norms and rules of the WTO and confirm the importance of the accession of all three states to the Organization» August _ Treaty on the Functioning of the CU in the Framework of Multilateral Trade System of 19 May of 2011 | 22 EEC and the WTO Membership

The Treaty on the Functioning of the CU in the Framework of the Multilateral Trading System Action plan of adaptation the CU and SES legal framework to the multilateral trading system was adopted on 31 st May 2012 by the Board Decision № 54 | 23 Tariff Regulation – Implemented  New Import Customs Tariff (the Council Decision № 54 on 16 th July 2012) Customs Valuation – Implemented  Interpretative Notes of the WTO Agreement on Implementation (Article VII of the GATT 1994 Methods for Customs Valuation) The Board Recommendation № 1 “On the Rules for Checking whether the Interrelation Between the Seller and the Buyer Influences the Transaction Value” of 20 th June 2012 The Board Decisions in regards to the Application of the Customs Valuation Methods:  № 202 of  № 214 of  № 273 of  № 283 of

| 24 SPS – Implemented  E.g. to ensure compatibility with international standards, recommendations and guidelines in particular OIE standards, several Decisions on Common Veterinary Requirements and Common Forms of Veterinary Certificates were taken:  № 254 of  № 262 of  № 274 of  № 307 of  № 308 of SPS – Ongoing process  Guidelines on inspection reflecting the reliance on international standards, guidelines and recommendations (currently are going through public hearings and estimated to be approved by June 2013)  Amendments to the Common System of Joint Inspections of Objects and Sampling Goods (Products), Subject to Veterinary Control (Surveillance) currently are going through public hearings and estimated to be approved by June 2013 | 24 On Russian Federation Commitments to the WTO

| 25 Transparency – Implemented  Council Decision № 48 “On Regulation on the Procedure for Development, Adoption, Amendment and Cancellation of Technical Regulations of the Customs Union” of 20 th June 2012 (revising the old Regulation)  The Customs Union Commission Decision № 721 “On the application of international standards, recommendations and guidelines” of 22 nd June 2011 Transparency – Ongoing process  The Decision “On assuring transparency in the process of adopting Eurasian Economic Commission acts in SPS sphere” was taken by the Board on 5 th March 2013 | 25 On Russian Federation Commitments to the WTO

The official site of the CU and the SES: Commission Headquarters: 3/5 building str. 1 Smolensky boulevard, Moscow, Russian Federation For additional information