The EAEU — the center for the formation of the Greater Eurasian Partnership

The Eurasian Economic Union (EAEU) is an international organization aimed at regional economic integration. It is the successor to the Eurasian Economic Community (EurAsEC), which existed in 2001-2014.

What is the EAEU

The Treaty on the Creation of the EAEU entered into force on January 1, 2015, it unites:

• Russia,
• Armenia,
• Belarus,
• Kazakhstan,
• Kyrgyzstan.

A number of countries have joined the activities of the EAEU as observers:

States — EAEU observers

• Republic of Moldova (2018)
• Republic of Uzbekistan (2020)
• Republic of Cuba (2020)

EAEU Free Trade Agreements:

• Vietnam (2015)
• Singapore (2019)
• Serbia (2019)
• Iran — Interim Agreement (2019)

Negotiating:

• Egypt — applied (2016). So far, four rounds of negotiations have been held.
• Iran — full free trade agreement negotiations (2020) Five rounds of negotiations held.
• Israel — negotiations for a free trade agreement (2015). Six rounds of negotiations were held.
• Mongolia — started the stage of negotiations on a free trade area and accession (since autumn 2016). Two SIG meetings were held.
• The UAE —has formed and is working on the Joint Study Group to study the feasibility of concluding a free trade agreement (2022).
• Tajikistan — the process of considering the feasibility of joining the EAEU (2015) is underway.

Concluding agreements

• On October 25, 2019, the Agreement on Trade and Economic Cooperation between the EAEU and China (signed in 2018) entered into force. In November 2020, the Agreement on the exchange of information on goods and vehicles of international transportation moving across the customs borders of the EAEU and China dated June 6, 2019 came into force.
• On February 16, 2023, the third meeting of the Joint Commission was held under the chairmanship of the EEC Minister for Trade Andrey Slepnev and Vice Minister of Commerce of the People's Republic of China Li Fei. The participants discussed issues of customs cooperation, cooperation in the field of competition and market protection measures. An important result of the meeting was the approval of a roadmap for the development of trade and economic cooperation between the EAEU, on the one hand, and China, on the other hand, including activities in the field of digitalization of railway transport, the exchange of information on strategic planning and joint scientific research on the prospects for developing cooperation.< /li>
• Agreed to hold joint events in 2023 to study the prospects for cooperation in the field of public procurement, industry and finance, as well as veterinary and phytosanitary cooperation.

Since its foundation in 2015, the Eurasian Economic Union has been steadily developing, clearly demonstrating its effectiveness and relevance. The absolute volume of mutual trade between states — members of the Union during this period increased by 60% and in 2021 reached a historical maximum of 73.1 billion dollars, and the volume of foreign trade grew by 46% — to 846.3 billion dollars. At the same time, the share of non-commodity goods with high added value increases every year in the internal trade turnover of the Union. The increase in total GDP per capita amounted to 28.7%, and the share of payments in national currencies approached 75%.

In 2022 in the EAEU:

• A set of measures and decisions of the EEC has been adopted, aimed at increasing the stability of the economies of states — members of the EAEU.
• An agreement was signed on the use of navigation seals in the Eurasian Economic Union to track shipments.
• Agreement on the establishment of the Eurasian Reinsurance Company was signed.
• The implementation of the joint project of the EAEU countries on the implementation of accelerated rail and multimodal transportation "Eurasian Agroexpress" was supported.
• A new format for financing industrial cooperation projects has been adopted.

"The EAEU has formed a digital framework to ensure the freedom of movement of goods, services, capital and labor." This was stated by the Chairman of the Board of the Eurasian Economic Commission Mikhail Myasnikovich at the plenary session of the V Eurasian Digital Forum EADF-2023. According to the Head of the EEC Board, 2023 will be of fundamental importance for the implementation of the digital agenda in the Eurasian Economic Union. “The Commission and the Member States have the formidable task of preventing the proper functioning of more than 50 business processes. And by the end of 2023, the Commission will create the technical ability to carry out information exchange between the countries of the Union on 70 of the 78 required general processes, — noted Mikhail Myasnikovich. — We provide a phased transition of an integrated information system to platform solutions, that is, to a more modern and efficient interaction model.

From January 1, 2023, Russia assumed the chairmanship of the Supreme Eurasian Economic Council, the Eurasian Intergovernmental Council and the Council of the Eurasian Economic Commission.

Russian President Vladimir Putin said that the Eurasian Economic Union has every opportunity to become one of the powerful independent poles of the multipolar world. In addition, in his address, V.V. Putin emphasizes that the EAEU is capable of “playing the role of one of the key centers for the formation of the Greater Eurasian Partnership,” having completed work on the implementation of free trade agreements with Egypt, Iran and India, “as well as activating new negotiation tracks, including with Indonesia and the United Arab Emirates».

Controls

1. Supreme Eurasian Economic Council (the supreme body of the EAEU, consists of the heads of member states);
2. Eurasian Intergovernmental Economic Council (consists of heads of government of member states);
3. Eurasian Economic Commission — EEC (single permanent regulatory body);
4. Court of the Eurasian Economic Union (permanent judicial body).

The governing bodies of the EAEU operate on the basis of equal representation of the member states.

EAEU Customs Union

EAEU Customs Union — a form of trade and economic integration of the participating countries, providing for a single customs territory, within which customs duties and economic restrictions are not applied in mutual trade in goods, with the exception of special protective, anti-dumping and countervailing measures. At the same time, the member countries of the Customs Union apply uniform customs tariffs and other regulatory measures when trading with third countries.

The unified customs territory of the Customs Union consists of the territories of the member countries of the Customs Union, as well as artificial islands, installations, structures and other objects in respect of which the Member States of the Customs Union have exclusive jurisdiction.

Member countries of the Customs Union:

• Kazakhstan — from July 1, 2010
• Russia — from July 1, 2010
• Belarus — since July 6, 2010
• Armenia — since October 10, 2014
• Kyrgyzstan — since May 8, 2015

Official persons of the member states of the Customs Union have repeatedly stated that they consider this organization as open to the entry of other countries. With some countries, negotiations are already underway to join the Customs Union, so it is likely that the territory of the Customs Union will be significantly expanded soon.

Technical regulation in the EAEU Customs Union

Technical regulation — one of the key elements of the integration of the member states of the Customs Union.

The mechanisms incorporated in technical regulation make it possible to eliminate numerous, in many cases artificially created, technical barriers to trade, which are a serious problem for business. This is helped by the legal framework created over the past few years, including thanks to the efforts of specialists from the Eurasian Economic Commission.

Within the framework of the Customs Union and the Eurasian Economic Community, the following main international treaties have been adopted to date, designed to simplify the movement of goods on the territory of the member states:

• Agreement on the implementation of a coordinated policy in the field of technical regulation, sanitary, veterinary and phytosanitary measures;
• Agreement on unified principles and rules of technical regulation;
• Agreement on the basics of harmonization of technical regulations;
• Agreement on the use of the Unified Mark of Products Circulation on the Market of the EAEU Member States;
• Agreement on the establishment of the EAEU information system in the field of technical regulation, sanitary, veterinary and phytosanitary measures;
• Agreement on the circulation of products subject to mandatory assessment (confirmation) of conformity in the territory of the Customs Union;
• Agreement on mutual recognition of accreditation of certification bodies (conformity assessment) and testing laboratories (centers) performing work on conformity assessment.

The so-called "four freedoms" became the result of the creation of the EAEU; (similar to those in the European Union): freedom of movement of goods, services, capital and labor between member countries. At the same time, unlike the EU, the EAEU does not have supranational political structures — it is an international organization pursuing economic goals, not a political association. Members of the Eurasian Union pursue a coordinated, coordinated or unified policy in various sectors of the economy. The goals of the union are modernization, cooperation and increasing the competitiveness of national economies, as well as creating conditions for stable development.

Thanks to the integration of countries in the post-Soviet space, the following economic effects have been achieved:

• reducing the price of goods due to lower costs;
• stimulating healthy competition in the EAEU common market;
• increasing production due to increased demand for goods;
• Increase the return on investment of new technologies due to increased market size.

As part of the Strategy, the EAEU is called upon to become "one of the centers of the Greater Eurasian Partnership" by linking it with the Belt and Road Initiative; (OPOP), SCO, ASEAN.

"The addition of natural resources, capital, strong human potential will allow the Eurasian Union to be competitive in the industrial and technological race, in competition for investors, for the creation of new jobs and advanced industries. And, along with other key players and regional structures, to ensure the sustainability of global development. —  Russian President Vladimir Putin said.

From January 1, 2015 — after the start of the functioning of the single labor market for the citizens of the Union, it became possible to move within the EAEU countries with the least difficulty and work comfortably. The Treaty on the Union secured equal employment opportunities on the territory of the association for citizens of all EAEU states and provided them with a number of preferences in the implementation of labor activities. The agreement on the provision of pensions for workers of the EAEU entered into force on January 1, 2021. The main goal: the formation, preservation and implementation of the pension rights of workers on the same conditions as citizens of the state of employment.

Thus, the EAEU — it is a global player in the global economic arena. Buying or selling your business in the EAEU countries is an easier and more cost-effective way to enter international markets, as business in these countries will develop rapidly. However, before making such a purchase or sale, a thorough analysis and assessment of all risks and opportunities should be carried out, and this work should be entrusted to the appropriate specialists. One of such professional teams operating in the international market, — this is Russian-Eurasian Business Broker (REAB).