april 2013. trade policy priorities trade policy multilateral level unwtoapeccis bilateral level...
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Eurasian Economic Commission
Trade Policy
April 2013
Trade Policy Priorities
Trade Policy
Multilateral Level
UN WTO APEC CIS
Bilateral Level
EU China Ukraine
Viet Nam EFTA New Zealand
Tackling Trade Barriers
Deepening relations with Main Trade Partners
Preparing Free Trade Agreements
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| 3CU/SES External Trade in 2010-2012*
*Data in $ bln.
2010 2011 20120
100
200
300
400
500
600
700
800
900
1,000
249
325 339
437
584 600
686
910939
Import Export Turnover
446
218
71
116EU 52%APEC 25%CIS 8%Other 15%
Geography of Trade(2012)
206
136
48
114
EU 40%APEC 27%CIS 9%Other 24%
Geography of Trade(2012, oil/gas excluded)
| 4Main Trade Partners
EU China Ukraine Turkey US Japan$0
$100,000,000,000
$200,000,000,000
$300,000,000,000
$400,000,000,000
$500,000,000,000
$600,000,000,000 Customs Union External Trade(turnover in USD for 2012)
Partners in EU
Netherlands 10,5 %Germany 8,8 %Italy 6,9 %France 3,3 %Poland 3,3 %UK 2,8 %…Czech Republic 1,2 %
52,28% 12,18% 6,23% 4,13% 3,36% 3,57%
| 5CU/SES Turnover Dynamics with the EU
*Data in $ bln.
2010 2011 20120
100
200
300
400
500
249
325341
110143 149
359
468 491
Export Import Turnover
2012 2012/ 2011 (%)
Export Import Turnover
CU/SES Trade with the EU 341 149 491 104,8
CU/SES Trade with Third Countries 600 339 939 103,2
EU Share in CU/SES Total External Trade 57,0 44,0 52,3
| 6Structure of the CU/SES Trade with the EU*
73.6
7
3.6 1 0.9 0.6 0.1 0.1
Import Export
1.1
6.2
21.2
48.4
3.511
2.2 0.3
* Data for 2011
73.6
13.6 7
0.9 0.6 0.1 0.1Natural Resources
Machinary, Transportation and Other Equipment
Chemicals and Rubber
Metal Industry Goods
Lumber and Paper Industry Goods
Agricultural and Industrial Goods
Textiles and Footwear
Tanning Industry Goods
The Customs Union Member States
CU Member States: Republic of Belarus
Republic of Kazakhstan
Russian Federation Surface: 20 mln. km² Population: 169 mln. Total GDP: 2,7 trn. $ US (4 % of world GDP) Total volume of external trade: 939 bln. $ US
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| 8Universal Stages of Regional Integration
Eurasian Economic Union
January 1st 2015
July 1st 2010
January 1st 2012
April 15th 1994
SUPREME EURASIAN ECONOMIC COUNCIL
- level of Heads of State- level of Heads of Government
EURASIAN ECONOMIC COMMISSION (the Commission)
Council of the Commission:3 Members of the Council
Board of the Commission:Chairman + 8 Members of the Board (Ministers)
EurAsEC Court
Supreme Body of the CU and the
SES
The Common permanent
regulatory body of the CU and
the SES
- defines the strategy and the objectives of further development of the CU and the SES
- ensures functioning and development of the CU and the SES, carries out the initiatives on further economic integration
Structural units of the Commission
- ensure the interaction with national authorities
Departments of the Commission
Consultative bodies of the Commission
Governing bodies of the CU/SES | 9
Eurasian Economic Commission
Chairman of the BoardViktor Khristenko
Board of the Commission
Nurlan AldabergenovMember of the Board - Minister in
charge of competition
Timur SuleimenovMember of the Board - Minister in charge of economy and financial
policy
Sergey SidorskyMember of the Board - Minister in charge of industry and agribusiness
Andrey SlepnevMember of the Board -
Minister in charge of trade
Valery KoreshkovMember of the Board - Minister in
charge of technical regulation
Vladimir GoshinMember of the Board -
Minister in charge of customs cooperation
Danial AkhmetovMember of the Board - Minister in charge of energy and infrastructure
Tatiana ValovayaMember of the Board - Minister in
charge of development of integration and macroeconomics
Departments Departments Departments
Advisory bodies
Council of the CommissionBelarus – Sergei Rumas Kazakhstan – Kairat KelimbetovRussia – Igor Shuvalov
Departments
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Decision making process within the CU and the SES
Departments of the Commission
Consulting bodies of the Commission
Council of the Commission
Board of the Commission
Supreme Eurasian Economic Council
1. The departments analyze the initiatives within their competency
3. The issue is submitted to the Board
4. The issue is submitted to the Council of the Commission
2. Member States analyze the issue and give their comments
5. The issue is submitted to the Supreme Eurasian Economic Council
Decisions taken by the CU
bodies become the integral part of the legal base of the CU and
the SES
The Board takes decision on issues within its competency
The Council takes decision on issues within its competency
The Supreme Council takes decision on the issue
National authorities
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All Regulative Decisions
Coordinated/Single Trade Policy (2013-2014)
Elements of the single trade policy: • Adoption and conduction of the Single Customs Tariff and Commodity Nomenclature of the Customs Union;
• Carrying out investigations and implementation of trade defense instruments (anti-dumping, countervailing, safeguard measures);
• Establishment of trade regimes with third countries;
• Establishment of a single Generalized System of Preferences (GSP);
• Establishment of a unified system of tariff preferences.
multilateral format (WTO and other Intl. org.)
preferential trade agreements (FTA)
Currently a coordinated trade policy with elements of single trade policy being conducted. The Member States and the Commission make decisions conjointly. At the same time a part of authorities to form
trade policy has been already transferred to the supranational body (Eurasian Economic Commission) and has been fulfilled by it.
Trade policy is a range of measures, aimed at execution of foreign-economic activity tasks by means of economic and administrative instruments.
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To be done in 2013-2014:
• Development of main directions for trade policy up to 2020, which would contribute to the sustainable economic development and integration of the CU/SES Member States;
• Coordination of the CU/SES Member States’ trade policy;
• Improvement of the CU/SES legal framework in the spheres of tariff and non-tariff regulation;
• Elaboration and announcement in WTO of a common position of the CU/SES Member States on the issues of the Commission’s competence;
• Further work on establishment of bilateral contacts and formalization of cooperation with third countries, including negotiations on free trade agreements;
• Further forming of platforms for discussions on trade policy with third countries, building closer relationships with regional and international organizations.
Coordinated/Single Trade Policy (2013-2014)
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Total unification of the terms of trade with third countries on the basis of the most favoured nation status (MFN) or preferential agreements concluded with third countries on behalf of the Eurasian
Economic Union and the Member States.
• Conducting trade policy on the basis of common rules and principles, laid down in the Treaty on Establishing Eurasian Economic Union;
• Establishment of supranational competencies for single trade policy implementation;
• Execution of international trade with third countries on the basis of Foreign Economic Activity Commodity Nomenclature and Unified Customs Tariff of the Customs Union;
• Elaboration and announcing in the WTO of the common position of the Member States of the CU/SES;
• Realization of the common tariff and non-tariff policy, including measures on domestic market defence;
• Conducting trade negotiations and concluding international agreements on behalf of the CU/SES, including preferential trade agreements.
Single Trade Policy (from 01.01.2015)
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Foreign Trade Issues
Tariff regulation Non-tariff regulation Customs administration Technical regulation Sanitary, veterinary, and phytosanitary
measures Statistics of external and mutual trade Trade remedies Establishment of trade regimes for
third countries
The Competence of the Eurasian Economic Commission
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Other Issues
Macroeconomic policy Competition policy Industrial and agricultural subsidies Energy policy Transport and transportation Natural monopolies State and (or) municipal procurement Mutual trade in services and
investment Financial markets (banking, insurance,
foreign exchange market, stock market)
Currency policy Protection of intellectual property and
identification means for goods, work and services
Labor migration
0% - 1606
5% - 3313
10% - 2290
15% - 2636
20% - 791
Other
EEC and GATT:Tariff Regulation
| 16
Competence of the Commission:
Determining and adjusting:
Import tariff rates Tariff preferences Tariff exemptions Rules of origin Rules and guidelines on customs valuation
Competence of the Member States:
Application of regulative norms set by EEC Regulatory enforcement
Applied tariff rates
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Competence of the Commission:
Taking decisions to introduce and cancel non-tariff measures including:
Licensing Quantitative restrictions (such as those in accordance with Article XX of GATT) Exclusive rights to export/import Export and import quotas
Determining the procedure of application of non-tariff measures
Allocating export and import quotas between the Member States, and, if necessary, allocating/distributing import quotas between third countries
Competence of the Member States:
Applying regulative norms set by EEC Regulatory enforcement Allocating quotas between national importers or exporters
| 17EEC and GATT:
Non-Tariff Regulation
| 18EEC and GATT:Trade Remedies
Competence of the Commission:
Adopt decisions on imposition, extension, review or termination of trade remedy measures by the Customs Union to third countries
Conduct investigations (anti-dumping, countervailing and safeguard) and holding consultations with interested parties
Investigating authority – Department for Internal Market Defence of the EEC
Monitor the application of the relevant decisions of the Commission
Competence of the Member States:
Implementation of trade remedy measures (collection of duties, administration of quotas)
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Competence of the Commission:
Developing and adopting:
Technical Regulations of the Customs Union
Common List of Products Subject to Technical Regulation
Criteria for Conformity Assessment Bodies and Test Laboratories
Rules for Conformity Assessment
Common Forms for Certification and Declaration of Conformity
Competence of the Member States:
Regulatory Enforcement
Developing and Adopting:
National standards (non-obligatory) Rules, norms and recommendations in the sphere of standardization Standards adopted by organizations (standards of enterprises, scientific,
technical, engineering institutions and other societies) Sets of rules, (voluntary documents, elaborated and approved by the
national bodies related to standardization)
| 19EEC Standards and Safety
Technical Regulation
| 20
Competence of the Commission:
Developing and adopting:
List of Goods Subject to Veterinary Control List of Goods Subject to Sanitary-Epidemiological Supervision List of Products Under Quarantine (regulated goods, regulated articles of regulated products)
Common Veterinary Requirements Uniform Sanitary-Epidemiological and Hygienic Requirements for
Products Subject to Sanitary-Epidemiological Supervision
Order and Procedures of Veterinary Control Common Forms of Documents Confirming the Safety of Products
Competence of the Member States:
Implementation of Sanitary and Epidemiological Surveillance, Phytosanitary and Veterinary Control (Surveillance)
Carrying out Joint Inspections of Objects and Sampling Goods (Products) Subject to Veterinary Control (Surveillance)
Development and Implementation of temporary veterinary sanitary and phytosanitary measures and requirements
| 20EEC Standards and Safety
Sanitary and Phytosanitary Measures
| 21| 21
Competence of the Commission:
Approving common rules for customs operations in the Customs Union Customs declaring and clearance Customs examination
Approving customs documents forms and the rules of their fulfillment
Forms of customs declaration, declaration of customs value, passenger customs declaration, acts of customs control, etc.
Competence of the Member States:
Determining specific requirements for customs operations (when it is permitted by the Customs Code)
Regulatory enforcement
EEC Customs Administration
The Russian Federation became a member of the WTO in August of 2012
Declaration on the Eurasian Economic Integration by the three Presidents (November 2011):
«In their practical cooperation, the member countries of the SES are guided by norms and rules of the WTO and confirm the importance of the accession of all three states to the Organization»
August 2012 2013 201_
Treaty on the Functioning of the CU in the Framework of Multilateral Trade System of 19 May of 2011
| 22EEC and the WTO Membership
The Treaty on the Functioning of the CU in the Framework of the Multilateral Trading System
Action plan of adaptation the CU and SES legal framework to the multilateral trading system was adopted on 31st May 2012 by the Board Decision № 54
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Tariff Regulation – Implemented
New Import Customs Tariff (the Council Decision № 54 on 16th July 2012)
Customs Valuation – Implemented
Interpretative Notes of the WTO Agreement on Implementation (Article VII of the GATT 1994 Methods for Customs Valuation)
The Board Recommendation № 1 “On the Rules for Checking whether the Interrelation Between the Seller and the Buyer Influences the Transaction Value” of 20 th June 2012
The Board Decisions in regards to the Application of the Customs Valuation Methods:
№ 202 of 30.10.12 № 214 of 13.11.12 № 273 of 12.12.12 № 283 of 20.12.12
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SPS – Implemented
E.g. to ensure compatibility with international standards, recommendations and guidelines in particular OIE standards, several Decisions on Common Veterinary Requirements and Common Forms of Veterinary Certificates were taken:
№ 254 of 04.12.2012 № 262 of 04.12.2012 № 274 of 12.12.2012 № 307 of 25.12.2012 № 308 of 25.12.2012
SPS – Ongoing process
Guidelines on inspection reflecting the reliance on international standards, guidelines and recommendations (currently are going through public hearings and estimated to be approved by June 2013)
Amendments to the Common System of Joint Inspections of Objects and Sampling Goods (Products), Subject to Veterinary Control (Surveillance) currently are going through public hearings and estimated to be approved by June 2013
| 24On Russian Federation
Commitments to the WTO
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Transparency – Implemented
Council Decision № 48 “On Regulation on the Procedure for Development, Adoption, Amendment and Cancellation of Technical Regulations of the Customs Union” of 20th June 2012 (revising the old Regulation)
The Customs Union Commission Decision № 721 “On the application of international standards, recommendations and guidelines” of 22nd June 2011
Transparency – Ongoing process
The Decision “On assuring transparency in the process of adopting Eurasian Economic Commission acts in SPS sphere” was taken by the Board on 5th March 2013
| 25On Russian Federation
Commitments to the WTO
The official site of the CU and the SES: www.eecommission.org
Commission Headquarters: 3/5 building str. 1 Smolensky boulevard, Moscow, 119121
Russian Federation
For additional information