What is a customs union and what is its significance? Customs Union

In 1995, the countries of the Customs Union were identified, united by economic and trade relations. These are today Kazakhstan, Belarus and Russia with Kyrgyzstan and Armenia that joined them. The countries of the Customs Union formed a single territory with the abolition of all duties on products sold within these borders. There is the same customs tariff for all and the same requirements have been created regarding the regulation of trade relations with other countries.

Before 2012 and after

Uniform standards were introduced, which the countries of the Customs Union undertook to comply with, thus protecting their own markets from low-quality imported products, as well as smoothing out the roughness of the trade and economic spheres within the Union. The same 2007 agreement provides for the creation of a commission that has become a regulatory body covering all countries of the Customs Union. Her term of work ended in July 2012, and she was replaced by an even more powerful organization - the EEC, which began its activities six months before the end of the Customs Commission. The Eurasian Economic Commission has an order of magnitude more powers, ten times more people are involved in its staff.

The customs commission formed normative acts and legal documents, which were necessarily considered and signed by all participants, that is, three people - the chairman and two members of the commission. It should be noted that such a commonwealth plan as the Eurasian countries of the Customs Union with Russia is far from the first experience in the history of mankind. In the nineteenth century, the German Customs Union was created, later the EU Customs Union, the South African Customs Union, and so on. This is nothing more than an interstate agreement between more than two countries on the abolition of customs trade duties, one of the forms of collective protectionism.

How does this happen

Every time a customs union is created, the participating countries negotiate the creation of multi-state bodies that will coordinate and harmonize foreign trade policy. Meetings are periodically held at the level of ministers of the relevant departments, relying in their work on a permanent interstate secretariat. The Customs Union, whose member countries have interstate integration, also creates supranational bodies. This is a more advanced form of integration than, for example, simple free trade zones. The EEC, on the other hand, is a permanent regulatory supranational body of the EAEU, which was previously the less advanced Customs Union and the Common Economic Space (CES).

This modern form of a single trade and economic union was created in 2011 by the decision of the three presidents - the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation - and sealed by an agreement dated November 18 this year. By status, this organization is a supranational governing body, and is subordinate to the SEEC (Supreme Eurasian Economic Council), and the decisions of the commission are mandatory implemented by all countries - members of the Customs Union, the EAEU and the CES. The main task for the EEC is to provide all conditions for the development and functioning of these three formations, as well as to improve the sphere of integration within the boundaries of these associations.

Powers

All powers of the Customs Union Commission were transferred to the Eurasian Economic Commission. In addition, there are also additional functions, there are quite a lot of them. The spheres of authority are very wide, the commission deals with customs-tariff and non-tariff regulation, customs administration, and technical regulation. Compliance with sanitary, phytosanitary and veterinary standards is of global importance, and here too the EEC is covered. Countries - members of the Customs Union enjoy import customs duties, which were credited and distributed by the commission. It also establishes trade regimes in relation to foreign countries. The commission is charged with maintaining statistics on mutual and foreign trade, building macroeconomic and competitive policies, and distributing agricultural and industrial subsidies.

Under the department of the Commission of the Customs Union is the energy policy, under its leadership, natural monopolies are created, municipal and state purchases are made. Each function of the EEC has the goal of flourishing mutual trade in investments and services, it controls the monetary policy. Also under its department - transportation and transport, protection of the results of individualization of services, works, goods, intellectual activity. The EEC deals with labor migration, financial markets - banking, insurance, securities markets and foreign exchange. And also in the areas of her interest, there is much more, which is quite difficult to list without rewriting multi-page documents. From the main point: it is the commission that implements international treaties, forms the contractual and legal framework of the CU and the EEC. The countries of the single Customs Union, being parties to this association, make share contributions approved by the heads of state of the parties.

History and prospects

So, in 1995, the leaders of Russia, Kazakhstan and Belarus signed agreements on the establishment of the Customs Union. Later they were joined by Tajikistan, Kyrgyzstan. In 2000, the Eurasian Economic Union was created on the basis of this organization. In 2007, the Customs Union Commission was established as a single acting, permanent regulatory body. This path turned out to be quite difficult for Tajikistan, and this needs to be discussed separately. Below there will be a chapter dedicated to Tajikistan and its path to the Customs Union, which this country has not yet mastered. Perhaps in 2017 he will become its sixth member.

In 2010, the Customs Code was introduced, and in 2011, the Declaration on Economic Integration and its Second Step, the CES (Common Economic Space), was adopted, which entered into force only in 2012 in the form of seventeen interstate agreements, where the legal basis was laid this organization. At the same time, the turn came to form the Eurasian Economic Commission, which replaced the Commission of the Customs Union. In January 2015, a comprehensive agreement on the Eurasian Economic Union was signed, which became the third step towards the creation of an advanced customs system on the territory of the above states. In 2016, five countries signed this treaty. Which countries are part of the New Type Customs Union? Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia.

Structure

In 2012, there were six hundred employees of the commission, in six months - eight hundred and fifty, and in 2013 - already more than a thousand. All of them are international employees. The EEC operates at two levels - the EEC Board and the EEC Council. The latter directs the activities of the commission, it has five representatives: from each participating country - the vice-premier of the national government. Meetings are held monthly. The Council includes I. I. Shuvalov from Russia, O. M. Pankratov from Kyrgyzstan, A. U. Mamin from Kazakhstan, V. S. Matyushevsky from Belarus, and V. V. Gabrielyan from Armenia. They take turns in alphabetical order. Decisions are made by consensus.

The executive body of the commission is the EEC Collegium, which carries out further integration within the borders of the CU and the CES. There are ten members, two people from each country, one of them presides. The countries that are members of the Customs Union appoint members and the Chairman of the Board for a period of four years, and extension of powers (at the level of heads of state) is also provided. Meetings are held weekly.

CU and Tajikistan

With the creation of the Customs Union, it became possible to unite in a certain format (supranational organization) a part of the space of the deceased Soviet Union. In essence, the Customs Union is the result of the manifestation of the will of the leaders of the three countries, which is aimed at removing barriers, at integration, freedom of movement of services, goods, all types of capital, including human capital, through the transparent borders of the participating countries. Logically, the union needs to expand, if not to sixteen members, but as many as possible. But from an economic point of view, this step is very risky. Regarding the entry into the CU of Tajikistan, the discussion has not ceased for many years, it is still burning. It must be said that, just like Kyrgyzstan, the Tajiks signaled their desire to join in a very contradictory way.

First, it is one of the poorest countries in Central Asia. There is no access to the sea, all around are mountains, where a civil war has lasted for five years since 1992. The entire infrastructure suffered, especially the economic one. Now the economy of this country is based on cotton production, light and textile industries. Recently, mining has begun - aluminum, coal, antimony, silver and gold. Also, power plants built under the Soviet Union are still operating in the republic. But in general, the situation in the country still remains deplorable. Almost the entire able-bodied population has left Tajikistan, mostly to Russia, from where money transfers are sent to families. Of course, this country would still be accepted into the Customs Union, but before Kyrgyzstan joined the Customs Union, Tajikistan did not have common borders with the Customs Union.

Territory

The single territory of the Customs Union is the countries that are its members and all their expanses. These are the terms of the agreements that are signed by the leaders of the CU: the boundaries of individual territories within any country participating in the CU are the boundaries of the CU. Within these states, customs borders have been eliminated, customs barriers have been removed, customs duties are not applied, and mutual trade is flourishing without any administrative restrictions.

Services, goods, capital and labor force flow freely throughout the territory, the domestic legislation of each participating country is unified with the creation of supranational regulation in the field of law. All this contributes to the growth and stability of all participating national economies.

Tasks

Only the main tasks that the countries of the Customs Union perform are presented here. List:

1. Create a single customs territory within the boundaries of the participating countries.

2. Introduce the regime of the absence of non-tariff and tariff restrictions in trade, except for those cases that are stipulated in special regulations.

3. Completely abolish customs control in the participating countries at their internal borders.

5. Use the same type of mechanisms in the regulation of trade and the economy, which are based on universal market principles of management and economic legislation harmonized for this purpose.

6. Establish the work of unified bodies managing the Customs Union.

Trade relations with countries that are not members of the CU along the entire external border exist according to different rules. They apply common customs tariffs, use uniform measures of non-tariff regulation, pursue a single customs policy and apply uniform customs regimes.

Positive sides

Compared to the functions of a free trade area, the CU has many advantages provided to all economic entities in the participating countries. First of all, the costs of creating, processing, moving, transporting goods across the territories of the CU countries are reduced.

In addition, financial and time costs are reduced due to the absence of administrative restrictions. The number of customs procedures is being reduced, while goods from other countries not participating in the CU must overcome many customs barriers. With the help of the vehicle, new markets are opened more easily. Customs legislation is being simplified and unified.

prospects

Countries such as Tunisia, Syria and Turkey intended to join the Eurasian Economic Union. So far, nothing is known about the specifics of actions regarding the implementation of these desires, but it may also happen that with the entry into the number of countries of the common customs space with Russia, political tensions will stabilize in these states. In any case, much says that these intentions in these countries are being discussed and weighed. Another country that is now a potential candidate for joining the CU is Uzbekistan.

With the death of President Karimov, who obviously did not want to integrate into any of the regional organizations, the policy in the state changed. Uzbekistan is experiencing the most difficult economic situation, with little hope of improvement. TS would be extremely beneficial to him. It is worth remembering that it is from Uzbekistan and Tajikistan in Russia that the largest number of migrants. There are also many from Kyrgyzstan, but they have a much more stable legal status, since this country is a member of the Customs Union. The customs union is still one of the steps to strengthen ties between the states of the former USSR. Through economic ties, through economic and technological chains - to the restoration of renewed ties and new political realities.

The Eurasian Economic Union (EAEU) is an international integration economic association (union), the agreement on the establishment of which was signed on May 29, 2014 and comes into force on January 1, 2015. The union included Russia, Kazakhstan and Belarus. The EAEU was created on the basis of the Customs Union of the Eurasian Economic Community (EurAsEC) to strengthen the economies of the participating countries and "rapprochement with each other", to modernize and increase the competitiveness of the participating countries in the world market. The EAEU member states plan to continue economic integration in the coming years.

The history of the creation of the Eurasian Economic Union

In 1995, the presidents of Belarus, Kazakhstan, Russia and later the acceding states - Kyrgyzstan and Tajikistan signed the first agreements on the creation of the Customs Union. Based on these agreements, the Eurasian Economic Community (EurAsEC) was created in 2000.

On October 6, 2007 in Dushanbe (Tajikistan) Belarus, Kazakhstan and Russia signed an agreement on the creation of a single customs territory and the Customs Union Commission as a single permanent governing body of the Customs Union.

The Eurasian Customs Union or the Customs Union of Belarus, Kazakhstan and Russia was born on January 1, 2010. The customs union was launched as a first step towards the formation of a broader European Union type of economic union of the former Soviet republics.

The establishment of the Eurasian Customs Union was guaranteed by 3 different treaties signed in 1995, 1999 and 2007. The first treaty in 1995 guaranteed its creation, the second in 1999 guaranteed its formation, and the third in 2007 announced the creation of a single customs territory and the formation of a customs union.

Access of products to the territory of the Customs Union was provided after checking these products for compliance with the requirements of the technical regulations of the Customs Union, which are applicable to these products. As of December 2012, 31 Technical Regulations of the Customs Union have been developed, which cover various types of products, some of which have already entered into force, and some will enter into force before 2015. Some technical regulations are yet to be developed.

Before the Technical Regulations entered into force, the following rules were the basis for access to the market of the member countries of the Customs Union:

1. National certificate - for product access to the market of the country where this certificate was issued.

2. Certificate of the Customs Union - a certificate issued in accordance with the "List of products subject to mandatory assessment (confirmation) of conformity within the framework of the Customs Union", - such a certificate is valid in all three member countries of the Customs Union.

Since November 19, 2011, the member states have implemented the work of the joint commission (Eurasian Economic Commission) to strengthen closer economic ties to create the Eurasian Economic Union by 2015.

On January 1, 2012, the three states formed the Common Economic Space to promote further economic integration. All three countries have ratified the basic package of 17 agreements governing the launch of the Common Economic Space (CES).

May 29, 2014 in Astana (Kazakhstan) signed an agreement on the establishment of the Eurasian Economic Union.

On January 1, 2015, the EAEU began to function as part of Russia, Belarus and Kazakhstan. On January 2, 2015, Armenia became a member of the EAEU. Kyrgyzstan announced its intention to participate in the EAEU.

Economy of the Eurasian Economic Union

The macroeconomic effect of the integration of Russia, Belarus and Kazakhstan into the EAEU is created by:

Reducing the prices of goods, due to a decrease in the cost of transporting raw materials or exporting finished products.

Stimulation of "healthy" competition in the common market of the EAEU due to an equal level of economic development.

Increasing competition in the common market of the Customs Union member countries due to the entry of new countries into the market.

An increase in average wages due to cost reduction and increased labor productivity.

Increasing production due to increased demand for goods.

Increasing the well-being of the peoples of the EAEU countries, due to lower food prices and an increase in employment.

Increasing the payback of new technologies and products due to the increased market size.

At the same time, the signed version of the agreement on the creation of the EAEU was of a compromise nature, and therefore a number of planned measures were not implemented in full. In particular, the Eurasian Economic Commission (EEC) and the Eurasian Economic Court have not received broad powers to control compliance with the agreements. If the EEC resolutions are not implemented, the disputed issue is considered by the Eurasian Economic Court, whose decisions are only advisory in nature, and the issue is finally resolved at the level of the Council of Heads of State. In addition, topical issues on the creation of a single financial regulator, on the policy in the field of energy trade, as well as on the problem of the existence of exemptions and restrictions in trade between the EAEU participants were postponed until 2025 or indefinitely.

Characteristics of the EAEU countries (as of 2014)

Source - CIA World Factbook

Governing bodies of the Eurasian Economic Union

The governing bodies of the EAEU are the Supreme Eurasian Economic Council and the Eurasian Economic Commission.

The Supreme Eurasian Economic Council is the supreme supranational body of the EAEU. The council includes heads of state and government. The Supreme Council meets at the level of heads of state at least once a year, at the level of heads of government - at least twice a year. Decisions are made by consensus. The adopted decisions become binding for implementation in all participating States. The Council determines the composition and powers of other regulatory structures.

The Eurasian Economic Commission (EEC) is one permanent regulatory body (supranational governing body) in the EAEU. The main task of the EEC is to provide conditions for the development and functioning of the EAEU, as well as the development of initiatives for economic integration within the EAEU.

The powers of the Eurasian Economic Commission are defined in Article 3 of the Treaty on the Eurasian Economic Commission dated November 18, 2010. All rights and functions of the previously existing Commission of the Customs Union have been delegated to the Eurasian Economic Commission.

Within the competence of the Commission:

• customs tariffs and non-tariff regulation;
• customs administration;
• technical regulation;
• sanitary, veterinary and phytosanitary measures;
• enrollment and distribution of import customs duties;
• establishment of trade regimes with third countries;
• statistics of foreign and domestic trade;
• macroeconomic policy;
• competition policy;
• industrial and agricultural subsidies;
• energy policy;
• natural monopolies;
• state and municipal purchases;
• domestic service trade and investment;
• transport and transportation;
• monetary policy;
• intellectual property and copyright;
• migration policy;
• financial markets (banking, insurance, currency and stock markets);
• and some other areas.

The Commission ensures the implementation of international treaties that make up the legal framework of the Eurasian Economic Union.

The Commission is also the depository of international treaties that formed the legal basis of the CU and CES, and now the EAEU, as well as decisions of the Supreme Eurasian Economic Council.

Within its competence, the Commission adopts non-binding documents, such as recommendations, and can also make decisions that are binding in the EAEU member countries.

The budget of the Commission is made up of the contributions of the Member States and is approved by the Heads of the EAEU Member States.

Possible new members of the Eurasian Economic Union

The main contenders for joining the EAEU are Armenia and Kyrgyzstan. In July 2014, news broke that Armenia would sign an agreement on joining the Eurasian Economic Union before September 10, 2014. There is information that negotiations between Armenia and the founding countries of the EAEU and the Eurasian Economic Commission have been completed. The agreement on the accession of Armenia to the EAEU is in the governments of Russia, Kazakhstan and Belarus, where it is undergoing the necessary bureaucratic stages, and after the decision of the governments, the question of the place where the presidents of Armenia and the EAEU countries will meet to sign the agreement will be raised.

It is also reported that Kyrgyzstan may soon join the EAEU member countries. However, no specific deadlines have been set for this country's accession to the EAEU so far (previously, the date was announced - until the end of 2014). In addition, the population of the country, apparently, is not particularly eager to join the EAEU. This conclusion can be drawn based on civic activity in collecting signatures for a petition in support of Kyrgyzstan's accession to the Customs Union and the EAEU. To date, only 38 people have signed the appeal.

Russians are also suspicious of Kyrgyzstan's possible accession to the Eurasian Economic Union. This is evidenced by the results of a survey conducted by the All-Russian Public Opinion Research Center (VTsIOM). According to researchers, only 20% of those polled were in favor of joining the union of Kyrgyzstan, the same number of votes for Moldova. The most desirable country that the Russians would like to see as allies turned out to be Armenia. 45% of respondents voted for it.

Azerbaijan and Moldova are waiting for every fifth person in the EAEU (23% and 20% respectively). Only 17% of survey participants are in favor of joining the EAEU of Uzbekistan, while Tajikistan and Georgia - 14% each. Respondents spoke least of all in favor of attracting Ukraine to the Eurasian Economic Union - 10%. And 13% of respondents believe that the EAEU should not be expanded yet.

Poll of public opinion in the CIS regarding integration

Since 2012, the Eurasian Development Bank (established in Russia and Kazakhstan) has been conducting a regular survey of the opinions of residents of individual states regarding Eurasian integration projects. The following question was asked to residents of individual countries: “Belarus, Kazakhstan and Russia united in the Customs Union, which freed trade between the three countries from duties, and created the Common Economic Space (in fact, the single market of the three countries). How do you feel about this decision?

The results of the answers "profitable" and "very profitable" are given below:

As can be seen, the idea of ​​creating the Customs Union and the Eurasian Economic Union as a whole is approved and looks “beneficial” in the eyes of the majority of the population of almost everyone, with the exception of Azerbaijan, the CIS countries and even Georgia.

Meanwhile, the United States in its foreign policy opposes the Customs Union and the EAEU, arguing that this is an attempt to restore Russian dominance in the post-Soviet space and create a union like the USSR.

The Customs Union is an agreement adopted by the members of the Eurasian Economic Union, the purpose of which is cancellation of customs payments in trade relations. Based on these agreements, common ways of carrying out economic activity, a platform for quality assessment and certification are being created.

This achieves abolition of customs control on the borders within the Union, general provisions for the regulation of 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 the implementation of border controls. Another distinctive feature is the equality of citizens of the customs area during employment.

In 2017, the Customs Union consists of the 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, it is known about the proposal to include Turkey in the CU agreement. However, no specific procedures have been adopted so far for the entry of these states into the ranks of the Union.

It is clearly seen that the functioning of the Customs Union is a good help for strengthening economic relations between countries located on the territory of the former Soviet countries. It can also be said that the approach established in the agreement by the participating countries speaks of restoration of lost ties in modern conditions.

Customs duties are distributed using a single shared distribution 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 the countries that are members of the EAEU.

Stages of formation

To understand what the activities of the Customs Union are, it will not be superfluous to get 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 establishment of an economic union, signed on September 24, 1993.

Step by step moving towards this goal, in 1995, two states (Russia and Belarus) concluded an agreement between themselves on the establishment of the Customs Union. Later, Kazakhstan, Kyrgyzstan, Tajikistan 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 establish 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 decided that, starting from 2012, a Common Market due to the unification of countries into a single economic space.

On July 1, 2010, another important agreement was concluded, which launched the work of the Common Customs Tariff and the Customs Code.

On July 1, 2011, the current customs control at the borders between countries was canceled and common rules were established at the borders with states that are not in an agreement. Until 2013, uniform legislative norms for the parties to the agreement are being formed.

2014 - The Republic of Armenia is a member of the Customs Union. 2015 - The Republic of Kyrgyzstan is a member of the Customs Union.

Territory and administration

The unification of the borders of the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan has become the basis for the emergence of the Common 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 Eurasian Economic Union is managed and coordinated by two organs:

1. Interstate Council- the supreme body of a supranational nature, consists of heads of state and head of government of the Customs Union.
2. Commission of the Customs Union- an agency that deals with issues related to the formation of customs rules and regulates foreign trade policy.

Directions and conditions

By creating the Customs Union, the countries proclaimed the main goal social and economic progress. In the future, this implies an increase in trade and services that are produced by economic entities.

The increase in sales was originally expected directly in the space of the vehicle itself due to following conditions:

1. The abolition of customs procedures within the Union, which was supposed to make products manufactured within the single space more attractive, due to the abolition of duties.
2. Increasing trade through the abolition of customs control at internal borders.
3. Adoption of uniform requirements and integration of security standards.

Achievement of goals and perspectives

Having collected the available information about the emergence and activities of the Customs Union, we can conclude that the results of increasing the turnover of goods and services are published much less frequently than let's say the news about the signing of new agreements, i.e. its declarative part.

But, nevertheless, analyzing the stated goals during the creation of the CU, as well as observing their implementation, one cannot remain silent that the simplification of trade has been achieved, the competitive conditions for economic entities of the CU states have been improved.

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 economic elements within the Union.

Activity analysis

The customs union is made up of countries that have the same economic past, but today these states are very different from each other. Of course, in Soviet times, the republics differed in their specialization, but after gaining independence, there were still a lot of changes that affect the world market and the division of labor.

However, there are also common interests. For example, many participating countries remain dependent on the Russian market. This trend is economic and geopolitical in nature.

All through the time leading positions in the process of integration and stabilization of the EAEU and the Customs Union played Russian Federation. This was possible thanks to its stable economic growth until 2014, when commodity prices remained high, which helped to finance the processes launched by the agreements.

Although such a policy did not predict rapid economic growth, it nevertheless assumed the strengthening of Russia's position on the world stage.

To achieve these goals, the Republic went to increase tariffs on imported cars in the absence of its own production. Because of these measures, it was necessary to establish rules for certification of light industry goods which hurt the retail industry.

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 Russia's programs for import substitution.

All this served as obstacles for Belarus on the way to achieve its goals in full.

It should not be overlooked that the signed CU agreements contain various exceptions, clarifications, anti-dumping and countervailing measures that have become an obstacle to achieving common benefits and equal conditions for all countries. At various times, virtually every party to the agreement expressed disagreement with the terms of the agreements.

Although customs posts at the borders between the parties to the agreement were eliminated, preserved border zones between countries. Sanitary control at internal borders also continued. The absence of trusting relationships in the practice of interaction was revealed. An example of this is the disagreements that flare up from time to time between Russia and Belarus.

To date, it cannot be said that the goals that were declared in the agreement on the creation of the CU have been achieved. This can be seen from the decrease in the turnover of goods within the customs area. There are also no benefits for economic development compared to the time before agreements were signed.

But there are still signs that in the absence of an agreement, the situation would worsen more rapidly. The manifestation of the crisis would have had a larger and deeper character. A significant number of enterprises gain relative benefits by participating in trade relations within the Customs Union.

The agreements signed by the parties benefited the production of cars. Duty-free sale of cars assembled by manufacturers of participating countries has become available. In this way, conditions have been created for the implementation of projects who previously could not be successful.

What is a Customs Union? Details are on the video.

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The Customs Union is an agreement adopted by the members of the Eurasian Economic Union, the purpose of which is cancellation of customs payments in trade relations. Based on these agreements, common ways of carrying out economic activity, a platform for quality assessment and certification are being created.

This achieves abolition of customs control on the borders within the Union, general provisions for the regulation of 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 the implementation of border controls. Another distinctive feature is the equality of citizens of the customs area during employment.

In 2017, the Customs Union consists of the 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, it is known about the proposal to include Turkey in the CU agreement. However, no specific procedures have been adopted so far for the entry of these states into the ranks of the Union.

It is clearly seen that the functioning of the Customs Union is a good help for strengthening economic relations between countries located on the territory of the former Soviet countries. It can also be said that the approach established in the agreement by the participating countries speaks of restoration of lost ties in modern conditions.

Customs duties are distributed using a single shared distribution 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 the countries that are members of the EAEU.

Stages of formation

To understand what the activities of the Customs Union are, it will not be superfluous to get 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 establishment of an economic union, signed on September 24, 1993.

Step by step moving towards this goal, in 1995, two states (Russia and Belarus) concluded an agreement between themselves on the establishment of the Customs Union. Later, Kazakhstan, Kyrgyzstan, Tajikistan 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 establish 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 decided that, starting from 2012, a Common Market due to the unification of countries into a single economic space.

On July 1, 2010, another important agreement was concluded, which launched the work of the Common Customs Tariff and the Customs Code.

On July 1, 2011, the current customs control at the borders between countries was canceled and common rules were established at the borders with states that are not in an agreement. Until 2013, uniform legislative norms for the parties to the agreement are being formed.

2014 - The Republic of Armenia is a member of the Customs Union. 2015 - The Republic of Kyrgyzstan is a member of the Customs Union.

Territory and administration

The unification of the borders of the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan has become the basis for the emergence of the Common 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 Eurasian Economic Union is managed and coordinated by two organs:

1. Interstate Council- the supreme body of a supranational nature, consists of heads of state and head of government of the Customs Union.
2. Commission of the Customs Union- an agency that deals with issues related to the formation of customs rules and regulates foreign trade policy.

Directions and conditions

By creating the Customs Union, the countries proclaimed the main goal social and economic progress. In the future, this implies an increase in trade and services that are produced by economic entities.

The increase in sales was originally expected directly in the space of the vehicle itself due to following conditions:

1. The abolition of customs procedures within the Union, which was supposed to make products manufactured within the single space more attractive, due to the abolition of duties.
2. Increasing trade through the abolition of customs control at internal borders.
3. Adoption of uniform requirements and integration of security standards.

Achievement of goals and perspectives

Having collected the available information about the emergence and activities of the Customs Union, we can conclude that the results of increasing the turnover of goods and services are published much less frequently than let's say the news about the signing of new agreements, i.e. its declarative part.

But, nevertheless, analyzing the stated goals during the creation of the CU, as well as observing their implementation, one cannot remain silent that the simplification of trade has been achieved, the competitive conditions for economic entities of the CU states have been improved.

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 economic elements within the Union.

Activity analysis

The customs union is made up of countries that have the same economic past, but today these states are very different from each other. Of course, in Soviet times, the republics differed in their specialization, but after gaining independence, there were still a lot of changes that affect the world market and the division of labor.

However, there are also common interests. For example, many participating countries remain dependent on the Russian market. This trend is economic and geopolitical in nature.

All through the time leading positions in the process of integration and stabilization of the EAEU and the Customs Union played Russian Federation. This was possible thanks to its stable economic growth until 2014, when commodity prices remained high, which helped to finance the processes launched by the agreements.

Although such a policy did not predict rapid economic growth, it nevertheless assumed the strengthening of Russia's position on the world stage.

To achieve these goals, the Republic went to increase tariffs on imported cars in the absence of its own production. Because of these measures, it was necessary to establish rules for certification of light industry goods which hurt the retail industry.

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 Russia's programs for import substitution.

All this served as obstacles for Belarus on the way to achieve its goals in full.

It should not be overlooked that the signed CU agreements contain various exceptions, clarifications, anti-dumping and countervailing measures that have become an obstacle to achieving common benefits and equal conditions for all countries. At various times, virtually every party to the agreement expressed disagreement with the terms of the agreements.

Although customs posts at the borders between the parties to the agreement were eliminated, preserved border zones between countries. Sanitary control at internal borders also continued. The absence of trusting relationships in the practice of interaction was revealed. An example of this is the disagreements that flare up from time to time between Russia and Belarus.

To date, it cannot be said that the goals that were declared in the agreement on the creation of the CU have been achieved. This can be seen from the decrease in the turnover of goods within the customs area. There are also no benefits for economic development compared to the time before agreements were signed.

But there are still signs that in the absence of an agreement, the situation would worsen more rapidly. The manifestation of the crisis would have had a larger and deeper character. A significant number of enterprises gain relative benefits by participating in trade relations within the Customs Union.

The agreements signed by the parties benefited the production of cars. Duty-free sale of cars assembled by manufacturers of participating countries has become available. In this way, conditions have been created for the implementation of projects who previously could not be successful.

What is a Customs Union? Details are on the video.

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The Customs Union is an interstate association between countries within the framework of the EAEU. The main purpose of the creation is to simplify trade operations between the states that are members of the association. The CU participants also adopted common customs tariffs and other regulatory measures.

The task of creating such an economic association:

• Formation of a single customs territory within the countries that entered the association.
• On the territory of the Customs Union of the EAEU, there are regimes of tariff and non-tariff restrictions on trade between member states.
• Cancellation of control at internal posts on the border of countries that are included in the CU.
• The use of the same type of mechanisms for regulating trade and the economy. For this, measures are being introduced to harmonize the legislation of the CU members.
• Implementation and functioning of a single governing body.

As for trade relations with countries that are not members of the Customs Eurasian Economic Union, the following interaction is expected with them:

1. The application of a common tariff for certain goods that enter the territory of the association.
2. Use of unified measures of non-tariff regulation.
3. Carrying out the same customs policy.
4. Use of uniform tariffs.

At the moment, the most famous and long-functioning is the European Customs Economic Union. Its formation began in 1958.

Members, Territory and Governance

At the moment, the association consists of the following countries:

• Russia since July 2010
• Kazakhstan since July 2010
• Belarus since July 2010
• Armenia since October 2015
• Kyrgyzstan since May 2015

Syria and Tunisia voiced their desire to join, it was proposed to become a member of Turkey, but so far no decision has been made on joining. It is clearly noticeable that participation in the bloc gives the countries of the Eurasian Economic Union the strengthening of economic relations.

The unification of the borders of the states indicated above became the basis for the formation of the considered customs association. The borders of the CU are the borders of the countries that are members of the union.

The governing bodies are the same, the main 2:

1. Interstate Council. This is the highest body, whose members are the heads of state and heads of governments of the CU countries. It is supranational.
2. TC commission. This department solves all issues related to the formation of customs rules, is responsible for regulating the trade policy of states.

History of creation

The formation of the CU has become a lengthy and complex process in many respects. The member countries of the Customs Union 2019 are those states that have managed to go through all the stages of approvals and adjustments.

The process began in January 1997, when the presidents of Belarus, Kazakhstan, Russia and Kyrgyzstan signed an agreement "On measures to implement the agreements on the Customs Union." The need for such consolidation arose when it became clear that the USSR as a structure had gone into oblivion. Then the countries of the Customs Union (the list of 2019 proposed above) agreed to cooperate in order to form and develop a common economic space within the CIS.

Interesting! The idea of ​​creating the union was formed at the beginning of 1994 by Nursultan Nazarbayev. As the basis of the CU in his vision, the common interests of the states that were previously part of the USSR should have become.

The idea of ​​forming a union assumed the unhindered movement of goods and the provision of services to all participating countries. At the same time, the proposed format of economic contacts fully protected the interests of the countries of the Customs Union.

As a result, a single customs space was created without internal customs duties. Borders as such were transferred to the outer borders of the union. Ideally, trade was greatly simplified, but in reality everything turned out not so easy. at the first stage, the agreements included, among other things, the definition of the main areas of activity for each country to strengthen the union. More specifically:

1. Guaranteeing equal rights to the property of the Customs Union.
2. Members of the Eurasian Economic Union could freely dispose of the property of the CU within the limits of the legislation of the participating countries.
3. Creation of a unified regulatory framework for state regulation of the economy.

In the same 1997, the following integration departments were formed: the Interstate Council, the Integration Committee.

In 1998, Tajikistan became a member of the union, and an agreement “On the Customs Union and the Common Economic Space” was already signed between 5 countries. A few months later, the members of the Customs Union signed the following important documents:

• "On the Formation of the Customs Union".
• "On international road communications".
• "On uniform conditions for transit through the territories of the countries participating in the Customs Union."
• "On the interaction of energy systems".

In February 1999, the agreement "On the Customs Union and the Common Economic Space" was signed. Due to the adoption of these acts, it was possible to significantly simplify the procedures for border control between the member countries of the Eurasian Economic Union.

The next important steps are:

1. 2007 Belarus, Russia and Kazakhstan conclude an agreement on a single customs territory.
2. year 2009. Agreements that were previously signed are given a "physical form", that is, they are being implemented in practice.
3. 2010 The Customs Code of the Customs Union adopted earlier comes into force, is formed and adopted.
4. During 2011-2013, important documents are being developed that regulate the activities of the union. Among the most important, there is a unified technical regulation on product safety.

2014-2015 were marked by the replenishment of the list of countries of the Eurasian Economic Union (for 2017 it is also relevant) with Armenia and Kyrgyzstan. In the future, the union will expand, at the moment Tunisia and Syria have expressed a desire to join, but so far the matter has not gone beyond talk and the composition remains the same.

In 2019, the previously adopted Customs Code of the EAEU came into force.

You will learn about the new Customs Code of the Customs Union of 2019 from our article. Go to .

Distribution of customs duties

The Unified Customs Union naturally receives duties for crossing the borders of the association, import/export of goods. The association has adopted a scheme for distributing these revenues among the member countries. The structure is like this:

• Russia receives 85.33% of total revenues.
• Kazakhstan - 7.11%.
• Belarus - 4.55%.
• Kyrgyzstan - 1.9%.
• Armenia - 1.11%.

As you can see, taxes are distributed according to seniority, that is, the earlier a country became a member of the association, the greater the amount of income from duties it can count on.

At the moment, there is a period of formation of the CU, so the EU customs union has gone through a long period of 30 years until the moment of absolute formation.

Goals, directions

When creating a detailed economic space, the main goal was socio-economic progress. As a result, one of the main long-term goals was to increase the turnover of services of the participating countries. To begin with, this moment was realized between the participants through the following actions:

1. Implementation of common requirements and adoption of safety standards for domestic economies and the association in general.
2. Abolition of procedures at the internal customs of the Union countries. Due to this, the goods of the countries of the Customs Union of the Eurasian Economic Community have become more accessible and attractive.
3. Increasing trade through the above measures.

At the moment, the desired increase in trade is not happening, although new agreements are regularly adopted. True, the simplification of trade did not happen so significantly, competitive conditions improved.

Technical regulation

Technical regulation in the Customs Union is aimed at achieving the following goals and objectives:

• Reducing the pressure on the manufacturer - economic and administrative.
• Formation of two-level regulatory documentation, which helps to make the relationship in the market clearer and clearer.
• Increasing the level of protection of markets from dangerous products.
• Empowering companies to choose a commercial solution. This excludes double certification and duplication of other procedures.
• Exclusion of technical barriers for members of the Eurasian Customs Union.
• Stimulating the development of the economy in various ways.

As for the principles of technical regulation in the customs association, there are the following basic principles:

1. Establishment of a unified technical regulation for the participating countries regarding products and goods.
2. Pursuing a policy that is agreed with each country regarding technical regulation.
3. Until the entry of the TR of the Eurasian Economic Union of the EAEU, the effect of national legislation in this area.

Benefits of participating in the TS

At the moment, not all countries of the EAEU have joined the CU, each has its own reasons. But the main advantages of participating in such an association should be highlighted:

• Significant reduction in costs for: processing, transportation of goods within the union.
• Reduction of bureaucratic procedures, and as a result, time costs when transporting goods across the territory of the Customs Union.
• Reducing the number that must be passed to travel with cargo to third countries.
• The customs union in 2019 provides new markets.
• Simplification of legislation due to its unification.

Contradictions, problems or why the TS does not work as planned

Since each country seeks to maintain and support its economy, it is not surprising that frictions and difficulties often arise. It is “convenient” to apply individual sanctions through the methods of non-tariff regulation, which is what is happening. Although the countries of the customs union with Russia in the period of 2018-2019 have already “befriended”, there were many problems before.

One of the most difficult conflicts between the Russian Federation and Belarus, when in 2014 Russia banned the export of meat almost in full. At that time it was 400 thousand tons. At the same time, there was a tightening of control over goods that cross the border of Belarus, although in fact, according to the norms of the Customs Code of the Customs Union, it is impossible to strengthen control measures.

The reaction of the president of the country participating in the Customs Union was not long in coming - Belarus returned border control on the border with the Russian Federation. The conflict has become a real problem, because Belarus has announced its intention to abandon the ruble in settlements and return to dollars. As a result, the idea of ​​a customs union was strongly shaken - the member states of the Eurasian Economic Union felt insecure in this format of relations.

Conclusion

In the future, the economic association of the Customs Union has a chance for active development and implementation of all the declared advantages. While the formation process is going on, in general terms, the most interested participants are the neighbors of the Russian Federation, which, with the entry, will receive more favorable conditions for the purchase of gas and oil. The declared simplification of trade turnover has not yet been observed.

Video: Customs Union 2019