2,2TRN USD.$ 182,7 20MLN.SQ. THE MEMBER STATES OF THE EURASIAN ECONOMIC UNION. The Republic of Armenia joined the EAEU on 2 January 2015
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1 Vienna 2017
2 THE MEMBER STATES OF THE EURASIAN ECONOMIC UNION The Republic of Armenia joined the EAEU on 2 January 2015 GDP 2,2TRN USD.$ The Kyrgyz Republic joined the EAEU on 12 August 2015 POPULATION 182,7 OVER KM 20MLN.SQ. MLN Total Internal Trade: 2016: $42,5 bln. USD Total External Trade: 2016: $509,7 bln. USD Share of world production: Natural gas: 16,6% Oil: 14,2%
3 EAEU development goals 2015 Services Market Labour Market 2017 Pharmaceutic als Market Medical Appliances Market Unified legislation on responsibilit y for anticompetitive practices 2019 Electric Energy Market 2020 Excised goods Market (alcohol and tobacco) 2025 Market for Oil and Oil Products Financial Market Gas Market Transport Services Market
4 EURASIAN ECONOMIC UNION EXTERNAL TRADE Trade with foreign partners in 2016, $ bln Dynamics of foreign trade, $ bln. EU China 237,2 Ukraine Viet Nam 354,22 Israel India 4,3 2,4 1,8 8,8 3,08 78,5 15,5 4,34 2,6 Iran Serbia Singapore Egypt Other countries EAEU total foreign trade in 2016: $509,7 bln. USD EAEU trade with FTA partners (CIS, Viet Nam, Serbia*) in 2016: 6,4% of total foreign trade (32,5 bln. USD) * Serbia has FTA only with Russia, Belarus and Kazakhstan EAEU trade with potential FTA partners (Israel, India, Iran, Singapore, India, Egypt) in 2016: 4,1% of total foreign trade (21 bln. USD)
5 EAEU TRADE POLICY: REGULATORY AND POLITICAL GROUNDS SECTION IX of the Treaty on the EAEU Foreign Trade Policy Principles Objectivity, reasonability and proportionality of decisions Transparency of decision-making Respect for rights of the EAEU s trading partners Validity and objectivity of measures Protection of rights and legitimate interests of foreign trade participants
6 EAEU TREATREATY TRADE POLICY: ON THE EURASIAN REGULATORY ECONOMIC AND UNION: POLITICAL TRADETY ON THTREATY GROUNDS ON THE EURASIAN ECONOMIC UNION: TRADEE EURASIAN ECONOMIC UNION: TRADE Section VI "Customs Union Operation" Section VIII "Customs Regulation" Single internal commodity market Application of the Common Customs Tariff of the Eurasian Economic Union Single trade regime in goods with third countries Single customs regulations Free circulation of goods on the customs territory (without custom declaration and state control) General provisions (art.33-41) Section IX "Foreign Trade Policy" Tariff and non-tariff regulation (art.42-47, Annexes 6,7) Single customs regulation within the Union in accordance with the Customs Code of the Union Trade remedies (art.48-50) Basic principles Application of trade regimes (MFN, FTA) TG - single policy TS - coordination GSP Single ROO Countervailing measures Basic principles Common Commodity Nomenclature of foreign economic activity Common Customs Tariff principles of granting tariff preferences and application of tariff quotas application of non-tariff measures Application of safeguards, antidumping and countervailing measures (including retroactive anti-dumping and countervailing measures) Application of bilateral safeguards within the framework of FTAs
7 Forms of Trade Policy of the EAEU Multilateral Bilateral Autonomous Cooperation with international foras WTO UN APEC FTAs Vietnam Launched tracks: Israel, Iran, Serbia, Singapore, India, Egypt Frozen tracks: New Zealand, EFTA Other formats ASEAN Tariff regulation Non-tariff regulation Trade remedies General system of preferences for DCs and LDCs Export Support China MERCOSUR BRICS Market access facilitation
8 EAEU FTA negotiations: EAEU-Viet Nam FTA case study 8 Agreement signed 29 May 2015 Entry into force 5 October 2016
9 EAEU FTA negotiations: EAEU-Viet Nam FTA case study Substantial COMPREHENSIVE APPROACH Framework Trade in goods ROO CATF BSM TBT and SPS IPR Trade in services and investments (Russia-Vietnam) Dispute settlement Evolutionary clause Joint Committee E-commerce Competition Government procurement Sustainable development
10 EAEU-Viet Nam FTA: expected effects 10 Improvement of the competitiveness of domestic products in the partner s market resulting from the abolition of import duties Increased availability of products for the final consumer Possibilities to diverse trade in goods Increased transparency and predictability of conditions for bilateral trade Simplification of cross-border movement of goods in bilateral trade and increasing cooperation between the customs authorities Attraction of investments The increase in turnover from the current USD 4 billion to USD 8-10 billion in the Mid-term
11 Current negotiations: China case study 11 Trade and Economic Cooperation Agreement non-preferential character Negotiations launched in rounds of negotiations held negotiations substantially concluded in October 2017 Legal and Institutional framework for cooperation with China First step towards deeper integration with the One Belt, One Road Initiative Increased regulatory transparency and predictability Opportunities for the EAEU
12 Current negotiations: China case study Key features of the Agreement FTA-like scope WTO+ obligations in transparency Institutionalized cooperation between the EAEU and China Legal safeguards in order to meet the requirements of the EAEU internal legislation
13 Current negotiations: Iran 13 A JFS launched in 2015, finished in October 2016 Interim Agreement limited goods coverage and validity time limit Parallel consultations on the Interim Agreement launched in May 2016 Decision to launch negotiations adopted 26 December rounds of consultations/negotiations in Interim Agreement 3 years in force Within 3 years negotiations on a full-scale FTA (Article XXIV GATT) If negotiations are not completed the Interim Agreement automatically terminates Opportunities for the EAEU High internal demand in Iran for high-quality imported goods creates favorable environment for expansion of export Iran is a traditional partner of the EAEU Member States The Interim Agreement will create a competitive advantage for the EAEU because it will remove high tariff and non-tariff barriers in Iran Difficulties for the EAEU Iran is not a member to the WTO, thus there is no single understanding of various regulatory issues Non-transparent system of import regulation Unbound high tariff duties and import bans
14 Current negotiations: Singapore 14 Negotiations launched in 2016 First round of negotiations held: August 2017 Parallel consultations on services and investment between EAEU MS and Singapore Second round to be held: November 2017 KEY FEATURES Comprehensive scope: tariffs, issues related to trade in goods, WTO+ obligations, services and investment Trade in goods EAEU+MS vs Singapore Trade in services and investment: MS vs Singapore Aimed at reaching full-scale liberalization Prioritized negotiations schedule
15 Other FTA negotiations 15 Israel Serbia India Egypt JSF Negotiations launched in 2015 First round of negotiations held in November 2016 Unification of a free trade regime between all EAEU MS and Serbia Negotiations launched in December 2016 First round to be held in December 2017 Negotiations launched in December 2016 First round of negotiations planned for 2018 Negotiations launched in December 2016 First round of negotiations planned for 2018
16 THANK YOU! Eurasian Economic Commission Trade Policy Department
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