Eurasian Economic Community
Encyclopedia
The Eurasian Economic Community (EAEC or EurAsEC) originated from the Commonwealth of Independent States
(CIS) customs union
between Belarus
, Russia
and Kazakhstan
on 29 March 1996. The Treaty on the establishment of the Eurasian Economic Community was signed on 10 October 2000, in Kazakhstan's capital Astana by Presidents Alexander Lukashenko
of Belarus, Nursultan Nazarbayev
of Kazakhstan, Askar Akayev
of Kyrgyzstan
, Vladimir Putin
of Russia, and Emomali Rakhmonov of Tajikistan
. On 7 October 2005 it was decided between the member states that Uzbekistan
would join. Freedom of movement
is implemented among the members (no visa requirements). Common Economic Space was launched on 1 January 2010.
, composed of Kazakhstan
, Kyrgyzstan
, Tajikistan
, Uzbekistan
and Russia. Georgia
and Ukraine had observer status. Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan
and Uzbekistan formed the OCAC in 1991 as Central Asian Commonwealth (CAC). The organization continued in 1994 as Central Asian Economic Union (CAEU), in which Tajikistan and Turkmenistan
did not participate. In 1998 it became Central Asian Economic Cooperation (CAEC), which marked the return of Tajikistan.
On 28 February 2002, it was renamed to its current name. Russia joined on 28 May 2004. On 7 September 2005, at the St. Petersburg Summit of the Central Asian Cooperation Organization, it was agreed to merge CACO into EurAsEC.
In October 2005, Uzbekistan applied for membership in EAEC. OCAC has de facto dissolved on 25 January 2006, when Uzbekistan joined EAEC. But later in 2008 Uzbekistan has decided to temporarily suspend its membership.
member states of a Single Economic Space
and for coordinating their approaches while integrating into the world economy and the international trade
system. One of the Organization's chief activity vectors is ensuring the dynamic evolution of the Community states through coordinating their economic and social reforms while effectively using their economic potentials to improve the living standards of their peoples.
Among the principal tasks of the Community are:
s that would be based in Kiev
, would initially be headed by a representative of Kazakhstan
, and would not be subordinate to the governments of the four nations. The ultimate goal would be a regional organisation that would be open for other countries to join as well, and could eventually lead even to a single currency. On 22 May 2003 The Verkhovna Rada
(the Ukrainian Parliament) voted 266 votes in favour and 51 against the joint economic space. However, Viktor Yushchenko
's victory in the Ukrainian presidential election of 2004
was a significant blow against the project: Yushchenko had shown renewed interest in Ukrainian membership in the European Union, and such membership would have been incompatible with the envisioned common economic space. On March 1, 2010 the first deputy head of the presidential administration of newly elected
Ukrainian President Viktor Yanukovych
, Iryna Akymova stated that Ukraine does not intend to join the Customs Union of Russia, Kazakhstan and Belarus in the near future "Since the customs union contradicts and will greatly complicate Ukraine's membership in the WTO".
A single market
for the Customs Union of Belarus, Kazakhstan and Russia
is envisioned for 2012. It is expected that Serbia and Montenegro will join in the future as well.
. Since that time, there has been discord between the EU and Russia with both sides accusing the other of attempting to carve out spheres of influence
over the countries at issue (Belarus, Armenia, Azerbaijan, Georgia, Moldova and Ukraine). A supranational body of the customs union—the EurAsEC Customs Union Commission--was established on December 12, 2008. Boiled down to its essence, Russia has offered EurAsEC members access to its markets (i.e., for Kazakhstan) and lower energy prices (i.e., Belarus, Ukraine). The EU's offer to membership countries amounts to promises of de facto EU integration, such as relaxed visa entry requirements.
The Customs Union members—Kazakhstan, Belarus and Russia—reached an agreement on a unified customs tariff in June 2009 and endorsed a schedule for creating a unified customs territory.
According to Russian President Dmitry Medvedev
the creation of a common economic space for Russia, Kazakhstan, and Belarus may be launched on 1 January 2010. Russian Foreign Minister Sergei Lavrov said on 10 December 2008 that Moscow is ready to build a common economic space with both Europe and the United States
if every party is treated equally. According to reports from April 2010, the new Customs Union is intended to go into effect on July 1, 2010.
The Russian, Kazakh, and Belarusian leaders have approved documents to establish a “common economic space” on 1 January 2012 – a single market for goods, investment, and labor.
Kazakh President Nursultan Nazarbayev has proposed the creation of a common noncash currency called yevraz for the community. This would help insulate the countries from the global economic crisis.
Commonwealth of Independent States
The Commonwealth of Independent States is a regional organization whose participating countries are former Soviet Republics, formed during the breakup of the Soviet Union....
(CIS) customs union
Customs union
A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas...
between Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
and Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
on 29 March 1996. The Treaty on the establishment of the Eurasian Economic Community was signed on 10 October 2000, in Kazakhstan's capital Astana by Presidents Alexander Lukashenko
Alexander Lukashenko
Alexander Grigoryevich Lukashenko has been serving as the President of Belarus since 20 July 1994. Before his career as a politician, Lukashenko worked as director of a state-owned agricultural farm. Under Lukashenko's rule, Belarus has come to be viewed as a state whose conduct is out of line...
of Belarus, Nursultan Nazarbayev
Nursultan Nazarbayev
Nursultan Abishuly Nazarbayev has served as the President of Kazakhstan since the nation received its independence in 1991, after the fall of the Soviet Union...
of Kazakhstan, Askar Akayev
Askar Akayev
Askar Akayevich Akayev served as the President of Kyrgyzstan from 1990 until his overthrow in the March 2005 Tulip Revolution....
of Kyrgyzstan
Kyrgyzstan
Kyrgyzstan , officially the Kyrgyz Republic is one of the world's six independent Turkic states . Located in Central Asia, landlocked and mountainous, Kyrgyzstan is bordered by Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the southwest and China to the east...
, Vladimir Putin
Vladimir Putin
Vladimir Vladimirovich Putin served as the second President of the Russian Federation and is the current Prime Minister of Russia, as well as chairman of United Russia and Chairman of the Council of Ministers of the Union of Russia and Belarus. He became acting President on 31 December 1999, when...
of Russia, and Emomali Rakhmonov of Tajikistan
Tajikistan
Tajikistan , officially the Republic of Tajikistan , is a mountainous landlocked country in Central Asia. Afghanistan borders it to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east....
. On 7 October 2005 it was decided between the member states that Uzbekistan
Uzbekistan
Uzbekistan , officially the Republic of Uzbekistan is a doubly landlocked country in Central Asia and one of the six independent Turkic states. It shares borders with Kazakhstan to the west and to the north, Kyrgyzstan and Tajikistan to the east, and Afghanistan and Turkmenistan to the south....
would join. Freedom of movement
Freedom of movement
Freedom of movement, mobility rights or the right to travel is a human right concept that the constitutions of numerous states respect...
is implemented among the members (no visa requirements). Common Economic Space was launched on 1 January 2010.
Organization of Central Asian Cooperation
The Organization of Central Asian Cooperation (OCAC) (Central Asian Cooperation Organization, CACO) was an international organizationInternational organization
An intergovernmental organization, sometimes rendered as an international governmental organization and both abbreviated as IGO, is an organization composed primarily of sovereign states , or of other intergovernmental organizations...
, composed of Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
, Kyrgyzstan
Kyrgyzstan
Kyrgyzstan , officially the Kyrgyz Republic is one of the world's six independent Turkic states . Located in Central Asia, landlocked and mountainous, Kyrgyzstan is bordered by Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the southwest and China to the east...
, Tajikistan
Tajikistan
Tajikistan , officially the Republic of Tajikistan , is a mountainous landlocked country in Central Asia. Afghanistan borders it to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east....
, Uzbekistan
Uzbekistan
Uzbekistan , officially the Republic of Uzbekistan is a doubly landlocked country in Central Asia and one of the six independent Turkic states. It shares borders with Kazakhstan to the west and to the north, Kyrgyzstan and Tajikistan to the east, and Afghanistan and Turkmenistan to the south....
and Russia. Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...
and Ukraine had observer status. Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan
Turkmenistan
Turkmenistan , formerly also known as Turkmenia is one of the Turkic states in Central Asia. Until 1991, it was a constituent republic of the Soviet Union, the Turkmen Soviet Socialist Republic . Turkmenistan is one of the six independent Turkic states...
and Uzbekistan formed the OCAC in 1991 as Central Asian Commonwealth (CAC). The organization continued in 1994 as Central Asian Economic Union (CAEU), in which Tajikistan and Turkmenistan
Turkmenistan
Turkmenistan , formerly also known as Turkmenia is one of the Turkic states in Central Asia. Until 1991, it was a constituent republic of the Soviet Union, the Turkmen Soviet Socialist Republic . Turkmenistan is one of the six independent Turkic states...
did not participate. In 1998 it became Central Asian Economic Cooperation (CAEC), which marked the return of Tajikistan.
On 28 February 2002, it was renamed to its current name. Russia joined on 28 May 2004. On 7 September 2005, at the St. Petersburg Summit of the Central Asian Cooperation Organization, it was agreed to merge CACO into EurAsEC.
In October 2005, Uzbekistan applied for membership in EAEC. OCAC has de facto dissolved on 25 January 2006, when Uzbekistan joined EAEC. But later in 2008 Uzbekistan has decided to temporarily suspend its membership.
Aims
EAEC was established for effective promotion of the creation by the Customs UnionCustoms union
A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas...
member states of a Single Economic Space
Single market
A single market is a type of trade bloc which is composed of a free trade area with common policies on product regulation, and freedom of movement of the factors of production and of enterprise and services. The goal is that the movement of capital, labour, goods, and services between the members...
and for coordinating their approaches while integrating into the world economy and the international trade
International trade law
International trade law includes the appropriate rules and customs for handling trade between countries. However, it is also used in legal writings as trade between private sectors, which is not right. This branch of law is now an independent field of study as most governments has become part of...
system. One of the Organization's chief activity vectors is ensuring the dynamic evolution of the Community states through coordinating their economic and social reforms while effectively using their economic potentials to improve the living standards of their peoples.
Among the principal tasks of the Community are:
- completing the formalization of a free tradeFree tradeUnder a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
regime in all respects, creating a unified customs tariff and a unified system of nontariff regulation measures; - laying down the common rules for trade in goods and services and their access to internal markets;
- introducing a unified procedure for foreign exchangeForeign exchange marketThe foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
controls; - creating a common unified system of customsCustomsCustoms is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, transports, personal effects and hazardous items in and out of a country...
regulationRegulationRegulation is administrative legislation that constitutes or constrains rights and allocates responsibilities. It can be distinguished from primary legislation on the one hand and judge-made law on the other...
; - drawing up and implementing joint programs of economicEconomic developmentEconomic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
and social development; - creating equal conditions for productionProduction, costs, and pricingThe following outline is provided as an overview of and topical guide to industrial organization:Industrial organization – describes the behavior of firms in the marketplace with regard to production, pricing, employment and other decisions...
and entrepreneurial activitiesEntrepreneurshipEntrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response...
; - forming a common market for transportation services and a unified transport system;
- forming a common energy marketEnergy marketEnergy markets are those commodities markets that deal specifically with the trade and supply of energy. Energy market may refer to an electricity market, but can also refer to other sources of energy...
; - creating equal conditions for access by foreign investment to the sides' markets;
- giving the citizens of the Community states equal rightsCivil rightsCivil and political rights are a class of rights that protect individuals' freedom from unwarranted infringement by governments and private organizations, and ensure one's ability to participate in the civil and political life of the state without discrimination or repression.Civil rights include...
in receiving educationEducationEducation in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...
and medical assistance throughout its territory; - converging and harmonizing national legislationLegislationLegislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
; - ensuring the coordination of the legal systems of the EAEC states with a view to creating a common legal space within the Community.
Institutional framework
- Interstate Council
- Integration Committee
- Energy Policy Council
- Transport Policy Council
- Council on Border Issues
- Council of Heads of Customs Services
- Council of Heads of Tax Services
- Council of Ministers of Justice
- Secretariat
- Commission of Permanent Representatives
- Interparliamentary Assembly
- Community's Court of Justice
Economic data
| Country | Population | growth | per capita | ||
|---|---|---|---|---|---|
| Belarus | 9,688,796 | 36,961,815,474 | 44,773,406,221 | 21.13% | 4,621 |
| Russia | 142,498,534 | 984,926,789,696 | 1,289,582,151,445 | 30.93% | 9,050 |
| Kazakhstan | 15,421,864 | 81,003,864,916 | 104,143,432,632 | 28.57% | 6,753 |
| Kyrgyzstan | 5,316,544 | 2,834,168,893 | 3,745,000,489 | 32.14% | 704 |
| Uzbekistan | 27,372,256 | 17,077,480,575 | 19,274,619,012 | 12.87% | 704 |
| Tajikistan | 6,735,996 | 2,830,213,563 | 3,737,572,699 | 32.06% | 555 |
| EAEC total | 207,033,990 | 1,125,634,333,117 | 1,465,256,182,498 | 30.17% | 7,077 |
Common Economic Space
After discussion about the creation of a common economic space between the CIS countries of Russia, Ukraine, Belarus, and Kazakhstan, agreement in principle about the creation of this space was announced after a meeting in the Moscow suburb of Novo-Ogarevo on 23 February 2003. The Common Economic Space would involve a supranational commission on trade and tariffTariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
s that would be based in Kiev
Kiev
Kiev or Kyiv is the capital and the largest city of Ukraine, located in the north central part of the country on the Dnieper River. The population as of the 2001 census was 2,611,300. However, higher numbers have been cited in the press....
, would initially be headed by a representative of Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
, and would not be subordinate to the governments of the four nations. The ultimate goal would be a regional organisation that would be open for other countries to join as well, and could eventually lead even to a single currency. On 22 May 2003 The Verkhovna Rada
Verkhovna Rada
The Verkhovna Rada of Ukraine is Ukraine's parliament. The Verkhovna Rada is a unicameral parliament composed of 450 deputies, which is presided over by a chairman...
(the Ukrainian Parliament) voted 266 votes in favour and 51 against the joint economic space. However, Viktor Yushchenko
Viktor Yushchenko
Viktor Andriyovych Yushchenko is a former President of Ukraine. He took office on January 23, 2005, following a period of popular unrest known as the Orange Revolution...
's victory in the Ukrainian presidential election of 2004
Ukrainian presidential election, 2004
The Ukrainian presidential election, 2004 was held on October 31, November 21 and December 26, 2004. The election was the fourth presidential election to take place in Ukraine following independence from the Soviet Union...
was a significant blow against the project: Yushchenko had shown renewed interest in Ukrainian membership in the European Union, and such membership would have been incompatible with the envisioned common economic space. On March 1, 2010 the first deputy head of the presidential administration of newly elected
Ukrainian presidential election, 2010
The Ukrainian presidential election of 2010 is Ukraine's fifth presidential election since declaring independence from the Soviet Union in 1991. The first round was held on January 17, 2010...
Ukrainian President Viktor Yanukovych
Viktor Yanukovych
Viktor Fedorovych Yanukovych is a Ukrainian politician who has been the President of Ukraine since February 2010.Yanukovych served as the Governor of Donetsk Oblast from 1997 to 2002...
, Iryna Akymova stated that Ukraine does not intend to join the Customs Union of Russia, Kazakhstan and Belarus in the near future "Since the customs union contradicts and will greatly complicate Ukraine's membership in the WTO".
A single market
Single market
A single market is a type of trade bloc which is composed of a free trade area with common policies on product regulation, and freedom of movement of the factors of production and of enterprise and services. The goal is that the movement of capital, labour, goods, and services between the members...
for the Customs Union of Belarus, Kazakhstan and Russia
Customs Union of Belarus, Kazakhstan and Russia
The Customs Union between Belarus, Kazakhstan, and Russia came into existence on January 1, 2010. Belarus, Kazakhstan, and Russia are to go on with economic integration and were set to remove all customs borders between each other after July 2011....
is envisioned for 2012. It is expected that Serbia and Montenegro will join in the future as well.
EurAsEC Customs Union
The EurAsEC Customs Union became a top priority since Spring 2008, when the EU announced its Eastern PartnershipEastern Partnership
The Eastern Partnership is a project which was initiated by the European Union . It was presented by the foreign minister of Poland with assistance from Sweden at a the EU's General Affairs and External Relations Council in Brussels on 26 May 2008...
. Since that time, there has been discord between the EU and Russia with both sides accusing the other of attempting to carve out spheres of influence
Sphere of influence
In the field of international relations, a sphere of influence is a spatial region or conceptual division over which a state or organization has significant cultural, economic, military or political influence....
over the countries at issue (Belarus, Armenia, Azerbaijan, Georgia, Moldova and Ukraine). A supranational body of the customs union—the EurAsEC Customs Union Commission--was established on December 12, 2008. Boiled down to its essence, Russia has offered EurAsEC members access to its markets (i.e., for Kazakhstan) and lower energy prices (i.e., Belarus, Ukraine). The EU's offer to membership countries amounts to promises of de facto EU integration, such as relaxed visa entry requirements.
The Customs Union members—Kazakhstan, Belarus and Russia—reached an agreement on a unified customs tariff in June 2009 and endorsed a schedule for creating a unified customs territory.
According to Russian President Dmitry Medvedev
Dmitry Medvedev
Dmitry Anatolyevich Medvedev is the third President of the Russian Federation.Born to a family of academics, Medvedev graduated from the Law Department of Leningrad State University in 1987. He defended his dissertation in 1990 and worked as a docent at his alma mater, now renamed to Saint...
the creation of a common economic space for Russia, Kazakhstan, and Belarus may be launched on 1 January 2010. Russian Foreign Minister Sergei Lavrov said on 10 December 2008 that Moscow is ready to build a common economic space with both Europe and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
if every party is treated equally. According to reports from April 2010, the new Customs Union is intended to go into effect on July 1, 2010.
The Russian, Kazakh, and Belarusian leaders have approved documents to establish a “common economic space” on 1 January 2012 – a single market for goods, investment, and labor.
Kazakh President Nursultan Nazarbayev has proposed the creation of a common noncash currency called yevraz for the community. This would help insulate the countries from the global economic crisis.
See also
- ComeconComeconThe Council for Mutual Economic Assistance , 1949–1991, was an economic organisation under hegemony of Soviet Union comprising the countries of the Eastern Bloc along with a number of communist states elsewhere in the world...
, Soviet-era economic integration plan. - OSCE countries statistics
- Regional organizations in the Post-Soviet space