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(CU, SES and EAEU)

 

         Between 2006 and 2011,Kazakhstan madeconsiderable efforts to ensure the operationalization of the Customs Union of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation (the CU): adoption of the Common Customs Code of the three countries, application ofthe Common Customs Tariff, establishment of a supranational body – the Commission of the Customs Union, and a single customs territory where common customs duties and common non-tariff foreign trademeasures are applicable.

         The Single Economic Space of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation (the SES)was launched on January 1, 2012 and 17 basic SES agreements entered into force. Kazakhstan is working on the implementation of the provisions contained in these agreements in accordance with established timelines. The SES will ensure freedom of movement of goods, services, capital and labor. The CU and the SES have served as a base platform for a new level of the Eurasian integration – the Eurasian Economic Union (EAEU.)

         The activities of state bodies involved in the Eurasian integration processes in the first half of 2014 werefocused on the coordination of the draft EAEU Treaty (and related annexes.)

         As a result of the continuous work, the Treaty on the Eurasian Economic Union was signed on May, 29 2014 in Astana. The Eurasian Economic Union started operating on January 1, 2015.

         The EAEU Treaty consists of 4 parts(total amount – 1014 pages, main part – 154 pages, annexes– 860 pages.)

         Part One Establishment of the Eurasian Economic Union The Institutional Part.

         Part TwoCustoms Union.

         Part Three Single Economic Space.

         Part Four Transitional and Final Provisions.

         The Treaty is based on the agreements reached by the states within the CU and the SES.

         The Agreement includes sections in areas such as agriculture, industry, labor migration, monetary policy, financial market regulation, competition policy, natural monopolies, trade in services and investment, taxes and taxation, foreign trade policy, macroeconomic policy and energy.

         The Treaty stipulates that the Union is an international organization of regional economic integration with international legal personality.

         On the basis of the pre-existing CU and SES authorities the following bodies of the Union are being created:

         -  Supreme Council (at the level of Heads of State);

         -  Intergovernmental Council (at the level of Heads of Government);

         -  Eurasian Economic Commission (at the level ofthe Council and the Board);

         -  Court of the Eurasian Economic Union.

         It is envisaged that candidates for positions of directors of departments and their deputies are selected on a competitive basis taking into account the principle of equal representation of the Parties.

         At present, the Commission is represented by the Parties in accordance with thequota principle, in relation to Kazakhstan – 10%, Belarus – 6%, Russian Federation– 84%. This distribution was madebased on the indicators of the economically active population of the Member States.

         The Parties agreed that directors of departments and their deputies would be appointed from the candidates submitted by the Member States bymeans of a competition. The selection of candidates will be carried out by a competitive commission, consisting of 8 members of the Commission Board (except for the Chairman of the Commission Board.)

         Thus, the Commissionhas reached parity in the representation of the Member Statesat the level of the Board members, directors of departments and their deputies.

         Decisions of the Supreme Council, Intergovernmental Council, as well as the Commission Council have been taken and will be takenonly by consensus.

         In addition,a binding principle of the translation of international agreementswithin the Union and decisions of the Commission into the official languages of the Parties, followed by their publication on the official website of the Union, was enshrined.

         Moreover, a new regulationwas introduced allowing individuals and legal entities of the Parties to apply to the Commission in the official languages of the Member States.

         Translation into the official languages of the Member States will be funded from the Union budget allocated for these purposes.

         The negotiating delegation of Kazakhstan fully implemented the instructions and directives of the Head of State regarding:

         - inadmissibility of politicization of the economic integration;

         - equal representation of the Parties in  the EAEU bodies;

         - consensus based decision-making;

         - possibility of withdrawal from the Treaty;

         - rule of constitutional human and civil rights and freedoms;

         - maintenance of Kazakhstan's commitments previously madeto third countries and international organizations;

         - inclusion in the Treaty of the principles of respect for sovereign equality, territorial integrity, political system and national interests of the Member States;

         - possibilityfor the supreme authorities ofthe Union to cancelor review decisions made by its subordinate bodies.

         The EAEU Treaty is focused onaddressingissues to improve welfare and quality of life of citizens of our states. The creation of the EAEU will become a powerful impetus for the development and comprehensive modernization of our economies and bringing our countries to leading positions in the world.

 

            For reference:

            The Treaty was ratified in the Majilis of the Parliament of the Republic of Kazakhstan on October 1, 2014, the Senate of the Parliament of the Republic of KazakhstanonOctober 9, 2014.

            The Law on Ratification of the Treaty was signed by President of the Russian Federation V. Putin on October 3, 2014. Earlier, on October 1, 2014, the Treaty was approved by the Federation Council of the Federal Assembly of the Russian Federation; on September 26, 2014it was ratified by the State Duma of the Russian Federation.

            On October 9, 2014,the Treaty was ratified by the members of the National Assembly of the Republic of Belarus, on the same day President of the Republic of Belarus A.Lukashenko signed the Law on Ratification of the Treaty.

            On October 14, 2014, President of the Republic of Kazakhstan Nursultan Nazarbayev signed the Law of the Republic of Kazakhstan on Ratification of the Treaty.

***

         TheAgreement on Accession of the Republic of Armenia to the EAEUdated May 29, 2014 was signed on October 10, 2014 in Minsk during the meeting of the Supreme Eurasian Economic Council at the level of Heads of State, and theAgreement on Accession of the Kyrgyz Republic to the EAEUdated May 29, 2014 was signed in the abridged form (the main part consisting of eleven articles and one annex)on December 23, 2014 in Moscow at the regular meeting of the SEEC atthe level of Heads of State.

         Moreover, two protocols detailing the process of accession of Kyrgyzstan were signed on May 8, 2015 in Moscow following the meeting of the Supreme Eurasian Economic Council.

         Since August 12, 2015, Kyrgyzstan has been a full-fledged member of the EAEU.

         On October 16, 2015the village of Burabay hosted a meeting of the Supreme Eurasian Economic Council.

         During the talks, the Heads of State agreed on the new composition of the Board of the Eurasian Economic Commission, including the Chairman. According to the decision of the Supreme Council, the next Chairman of the Commission Board will be a representative from the Republic of ArmeniaTigranSargsyan.

         Following the meeting the Parties signed a number of documents defining the procedure of interaction of the Eurasian Economic Union and the Eurasian Economic Commission with third countries and approved the MainDirections of the EAEU international activity for 2015-2016, as well as the Approaches to the Development of Trade and Economic Cooperation with Key EAEUPartners in the medium term.

         The meeting decided to start negotiations with the State of Israel to establish a free trade zone. The proposal was adopted following the results of the report by the joint study group.

         The Main Directions of the Union's economic development until 2030 were approved in order to coordinate national policies and develop integration measures to improve the competitiveness of the Member States' economies as well as an Order of admission of new members and termination of membership in the Union was adopted.

         On December 21, 2015 in Moscow, the Presidents determined the nominal composition of the Commission Board and the division of responsibilities between the members of the Board. The meeting agreed on the EAEU budget for 2016, as well ason the amendments to the Program of gradual liberalization of car transportation within the Union, conducting population censuses in the countries of the Union in 2020 and Kazakhstan's chairmanship in the Union’s bodies in 2016 (at the level of Heads of State, Heads of Government, the Prime Ministers' deputies.) The SEEC meeting also addressed the issue of aligning the EAEU with the project The Silk Road Economic Belt.The work is underway to createaroad map of cooperation with China.