Ïðàâî/13. Ìåæäóíàðîäíîå ïðàâî
Rakhymzhan
Y., master student
Karaganda Economic University, Kazakhstan
PROBLEMS OF INTEGRATION OF EURASIAN ECONOMIC UNION
The current state
of the economy and geopolitical processes taking place in the world and the
CIS, identifies the main law - without close and harmonious integration of
nations can not cope with global challenges.
In Eurasia formed
new units, alliances and unions to protect the interests of the group of
participating countries. Powerful lobbying achieved through the collective
opinion on what a particular issue, which is produced due to the fact that
States parties to fit everything together.
As a unique geopolitical
and geographical place is occupied by the CIS countries. On one side of them -
and developed a strong European Union, which stands at the moment at the
threshold of the controversial development. On the other hand - the block of
ASEAN countries. Southeast Asia is a rapidly developing country in the world,
seeking to play a leading role in the world economy and politics. CIS is also
next door to a unique and enormous potential of China. In the south of the CIS
located original countries like Iran (ambitious and radical state with a
difficult situation today), Afghanistan (country, being the poorest, at the
same time serves as a "powder keg" of the region), India (densely
populated and advanced in the computer sphere of the country possessing nuclear
weapons), Israel (a tiny country, but it has a huge opportunity and impact) and
the Middle East (Arab money and Arab culture).
To protect their
views and their interests CIS countries required a union that integrates and
combines them. Moreover, this alliance should neither infringe nor limit the
independence of individual states. Since there is an experience of association
that provides formal independence of the state, but in its essence was a
totalitarian.
In the 90 years
of the twentieth century to take certain steps in the formation and the
creation of such a union. On it is necessary to speak Kazakh President
Nursultan Nazarbayev in March 1994 at the Moscow State University. MV
University, which initiated the creation of the Eurasian Union. His proposed
concept is based on a "voluntary, equitable integration, joint political
and economic development of the post-Soviet states", as well as the
promotion of the CIS countries on a strong position in the global world. The
result of these aspirations and desires was the formation and signing of 15
April 1994 the Presidents of Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan,
Kyrgyzstan, Moldova, Russia, Tajikistan, Uzbekistan and Ukraine Agreement on
Free Trade Zone (FTZ). However, this process did not develop as rapidly until
2011, until October 18, 2011 in St. Petersburg after a meeting of Council of
Heads of Government of the Commonwealth was not signed the Treaty on the free
trade zone.
First steps
possible to understand the need for an alliance CIS states, to protect their
interests in the international arena. All acknowledged that the Union must be
developed further, but did not take concrete action for its revival. Once again
the role of the initiator and leader took the President of Kazakhstan, when the
October 10, 2000 in Astana, with his active support, the Heads of State of
Kazakhstan, Belarus, Russia, Tajikistan and Kyrgyzstan signed the Treaty
establishing the Eurasian Economic Community (EurAsEC), revived the integration
process and allowed to move to a new level of integration. It is this treaty
was the basis for the creation of the Inter-Parliamentary Assembly and the
Eurasian Development Bank (EDB). It should be noted that the status of observer
in the Eurasian Economic Community are: Moldova, Ukraine and Armenia.
At the meetings
and summits of EurAsEC considered various issues of cooperation and the
abolition of customs duties within the participating countries. To go to a new
level of integration and convergence needed a new alliance that would meet
modern challenges and threats. They became the Customs Union, launched on 6
July 2010, with the signing in Astana, the presidents of Kazakhstan, Russia and
Belarus Joint Statement on the entry into force of the Treaty on the Customs
Code of the Customs Union. In 2012, Kyrgyzstan joined the CU.
The format of the
Customs Union formed the basis for the further strengthening and development of
integration processes. Proof of this are the actions taken by the main
political leaders of Kazakhstan and Russia. Actions and upcoming integration
steps were announced in Articles President Nursultan Nazarbayev "Eurasian
Economic Union: Theory or Reality" [5] and the Russian Prime Minister
Vladimir Putin "Prospects of the Eurasian Union", published by the
newspaper "Izvestia". For example, in an article published October 4,
2011, Vladimir Putin talks about the future prospects of unity. He stresses
that the CIS "is an indispensable mechanism to bridge positions and to
develop a common perspective on the key issues facing our region and brings a
visible, concrete benefits to all its participants." And also suggests
that the creation of the Common Economic Space has as its ultimate goal the
formation of the Eurasian Union. The Prime Minister is convinced that "the
creation of the Eurasian Union - this is the way to enable its participants to
take their rightful place in the complex world of the XXI century. Only by
working together our countries can become one of the leaders of global growth
and civilizational progress, success and prosperity "[6].
Further
development of integration based on the TC was the formation of the Common
Economic Space (CES), established December 9, 2010. Russia, Kazakhstan and
Belarus signed 17 documents regulating the EEA. For settlement and further
development of integration November 18, 2011 in Moscow, the Presidents of
Kazakhstan, Russia and Belarus signed the papers the next stage of integration:
the Declaration on Eurasian economic integration, the Treaty on the Eurasian
Economic Commission and the Regulations of the Eurasian Economic Commission.
Work CES began on January 1, 2012.
However, the
integration process is continued. It was stated that the ultimate goal is the
creation of the Common Economic Space of the Eurasian Union (CAP), whose work
is scheduled to begin in 2015. The mission of the CAP - the emergence of a new
geopolitical "poles" of the modern world, which plays the role of an
effective "link" between Europe and the dynamic Asia-Pacific region.
It is necessary
to consider both opportunities and threats of this integration. The study and
analysis of the integration processes in the CIS, we are confident that the
benefits of cooperation are several aspects. First, in our opinion, is to
increase trade between the countries-members of the Customs Union. For example,
the trade turnover between Kazakhstan and Belarus from January to June 2011
amounted to $ 368.5 million. And compared to the same period last year
increased by 20%. The Belarusian exports to Kazakhstan amounted to $ 283 million.
And grew by 26.2%, while imports from Russia - $ 85.5 million., It increased by
13.2%. [4]
The second
factor, we identified - is mutual investments, as well as increasing the number
of joint ventures. In particular, at the moment, together with Belarus,
Kazakhstan opened more than 100 companies. By the beginning of the EEA,
according to some forecasts, will be more than 150 enterprises, and this
process will only strengthen the economy of the three countries. We are talking
about industrial, agricultural and other sectors, joint ventures in the field
of finance and economics.
An important
factor is the use of experience in conducting and managing the economy between
the participating countries, including in the field of state regulation of the
economy and the banking sector, and economic diversification and the use of
best practices.
Moreover, we
believe that the emergence of new joint projects on the basis of agreements and
memoranda on various areas give rise to closer integration. Projects can swing
a variety of industries: oil and gas, agriculture and agro-industry, as well as
in finance and economics.
The fifth factor,
creating excellent opportunities for EAC member countries, in our opinion -
this is an opportunity to travel without visas within the Customs Union (SES,
EurAsEC), it will affect the development of tourism and tourism infrastructure
in the participating countries.
Another factor -
education and science. In this aspect, will open new horizons for cooperation
and collaboration. The basis of the relationship, potentially, may make the
best universities of the participating countries: Nazarbayev University, Kazakh
National University. Al-Farabi Kazakh National University, Moscow State
University. University, St. Petersburg State University, Kiev State University,
etc. Scientists EEA member countries will be able to share knowledge and
experience, as well as participate in a variety of educational and research
programs. This is the sixth fator.
One of the most
important factors we consider joint lobbying interests and priorities in the
international economic and political arena. Defending joint projects and
development.
A process that is
irreversible and is necessary in the first place on our territories - a
streamlining of customs authorities and better results. Since not only changes
the approach to work, but there are supranational bodies monitoring and
control.
Moreover, we
believe that the Eurasian Union gives a competitive advantage over entry into
the World Trade Organization. Since CES is a kind of "dress
rehearsal" before the entry into the WTO.
Our last factor,
which gives an affirmative answer to the creation of the Eurasian Union - is
becoming a competitive organization in the world. Since the industrial
potential of Kazakhstan, Russia and Belarus is estimated at $ 600 billion.
Dollars, the volume of agricultural production - 112 billion. Dollars, and oil
reserves amount to 90 billion. Barrels [1].
However, there
are other factors that prove otherwise. That the creation of the Eurasian Union
- more losses and a threat than an opportunity. We believe that the first
factor in this aspect is - the impossibility of competition. Since countries
with smaller populations will not be able to compete with countries with large
populations.
Moreover,
differences in tax and customs legislation may serve as the beginning of
inconsistencies and conflicts. For example, Kazakhstani duties on cars and
other goods were lower than those paid in Russia and Belarus. And after the
establishment of the Customs Union, these duties and tariffs began at the
Russian and Belarus, which has led to reduced activity in the market of
automobile industry.
Another
"uncomfortable" factor - an artificial barrier to goods from third
countries (those countries who are not in the EEA). This item may result in the
application of "double standards". Since Russia and Kyrgyzstan are to
the WTO and the EEA. Consequently, while other countries do not become full
members of the World Trade Organization, Russia and Kyrgyzstan will need to
choose whom to provide customs privileges. And that could lead to conflict.
Also, the
important point is the threat of import inflation due to the launch of the Customs
Union and the Common Economic Space. An example, the situation in Kazakhstan,
in 2009 inflation in Kazakhstan was 6.2%, in Russia - 8.8%, and in Belarus -
10.1% [3]. And in this respect there are two views: the first is that the
arrival of the Kazakhstan market of Russian goods, which are better and cheaper
than domestic, lead to stagnation Kazakh businessmen, and they will not survive
the price competition. Consequently, the prices should be reduced, and the
possibility of deflation rather than inflation - that is, reducing the money
supply by the retirement of the excess money to increase their purchasing
power. According to the second view, the decline in the share of cheap imports
from China will automatically lead to higher prices for all consumer goods, and
hence inflation increase.
The fifth factor,
significantly undermining the position of the Eurasian Union - a negligence and
speed of decision documents. Since after the signing of the documents of the
Customs Union and the entry into the EEA revealed shortcomings and obstacles
for future work, in particular, the subsoil in the territory of the Republic of
Kazakhstan in the Law "On Subsoil" and the main provisions of the
Customs Union. For example, the Law "On Subsoil", has not yet
approved the procedure for the procurement of goods, works and services as
subsoil operations. Another problem concerns the lack of a new law "On
Subsoil" requirements for annual work programs. Thus, the number of
formulations in force today in Kazakhstan articles of the Law "On
Subsoil" can still be treated differently from both the competent
authorities and from the subsoil. This means that Kazakhstan's legislation
requires further improvement [2].
We believe that
it is possible dominance of one state over the other countries, it will lead to
addiction. Moreover, the threat of national independence of states.
Also, dominance
can lead to economic dependence, which leads to the inability to raise barriers
to foreign products and protect domestic producers.
Research and analysis
of the Eurasian Union (EAU) has allowed us to draw conclusions, the basic
meaning of which can be interpreted as a union on an economic basis, which has
great potential and opportunities for further development and strengthening.
So, we are convinced that the processes taking place within the Customs Union
and the Common Economic Space based on voluntary participation, democracy and
cooperation, as well as hysterical proximity. That's what it said Nursultan
Nazarbayev in his article "Eurasian Economic Union: Theory or
Reality": "... I have always been a supporter of voluntary
integration ... Voluntary integration, based on the interests of the people and
the country - that is the shortest path to prosperity ". [5] Moreover, we
believe that the main principle of the Eurasian Union - the respect and
integrity of the national borders of the Member States, members of the EAC.
Naturally, there
are different scenarios and ways of development. We do not deny the fact that
perhaps there will be other stronger integration processes in the CIS. It is
possible that this unity within the EAC will only "on paper". Also,
do not deny that the script and the role of the impact can radically change as
a result of accession to the WTO, cooperation with third countries and other
external and internal factors. However, we are deeply convinced that at the
moment - the integration and consolidation within the Common Economic Space,
with the next target of the Eurasian Union is the most efficient in the CIS.
For the countries
of Eurasia, far from Europe, making them impossible to join the European Union,
the idea of education for its regional integration to strengthen the economy in
the post-Soviet space. In general, "Evrazianizm" [7] as a political
ideology appeared in Russia after the Russian Revolution of 1917, but was not
fully developed. In 1991, after the collapse of the Soviet Union, the debate
about "evrazianizme" resumed divided between those who favored
integration with Western Europe and the United States, and those who vehemently
argued that Russia should in contrast to the West, dominate the Ukraine,
Belarus, Central Asia and the Caucasus. To date, the question is about the
restoration of the former Soviet Union, focusing on the economic close
relationship between the two countries. But whether or not, this regional
integration is non-political character - much debated both in the West and the
former Soviet Union. Therefore, the formation of the Eurasian Economic Union,
adopted by the heads of three countries: Russia, Kazakhstan and Belarus is
undergoing as a concern and criticism, so the support and approval from the
public and private institutions, people, individuals. In this article the
author analyzed materials from different sources, and describes the advantages
and disadvantages of the Eurasian Economic Union of Education for Members.
Eurasian Union is
founded on two main documents: the Customs Code and the Uniform Agreement on
Customs Union and Common Economic Space. Permanent supranational regulatory
body of the Customs Union and the Common Economic Space is the Eurasian
Economic Commission, which began its work from 2 February 2012.
If we talk about
the success of the Customs Union of Russia, Belarus, Kazakhstan, which began
its implementation in 2010, the highlights are the development of a common
Customs Code and legislation, the creation of a supranational regulatory body -
the Eurasian Economic Commission [8]. However, the Customs Union has a number
of serious problems as a transit and in structuring. You're also a lot of
"white spots" in legal matters. Do not avoid the fact that each
member country has its own motives and priorities for economic integration.
Therefore, the important thing is to maintain and improve the mechanisms of the
Customs Union in the fact that there was no domination of the Russian side, as
analysts fear. This means that some decisions may be contrary to the interests
of Russia and each member country is able to offer the abolition of any
decision, if they do not agree with him. Moreover, the recent economic slowdown
in Russia worries some experts, because the territory of Russia is much more in
Kazakhstan and Belarus, the Russian economy and dimensions directly
proportional to affect the success of the integration project. In addition to
the problems of economic integration are not enough specialists.
Consider some of
the advantages and disadvantages of the Customs Union with respect to
Kazakhstan. Firstly, the massive influx of Russian and Belarusian goods in the
food, textile, furniture industry, certainly embarrass Kazakhstan producers.
Russian and Belarusian producers have a more powerful enterprises, whose
production capacity exceeds the Kazakh producers. Moreover, the Kazakhstani
goods are inferior in quality.
For example, the
Kazakh juice presented in Krasnoyarsk, according to experts of the Krasnoyarsk
Centre for Standardization and Metrology (CSM) turned out to be of poor quality
and harmful. But remember what happened with the Ukrainian candy Roshen, the
import of which was also banned by Rospotrebnadzor on the territory of Russia,
as in these sweets were vrednyeveschestva [9] .However, Kazakhstan and Belarus
Roshen candy import ban did not. May ban any goods from harmful substances are
either political game and "pressure" on the government, or indeed the
grading system of quality products in three different countries.
According to the
World Bank, Kazakhstan actually lost income per capita in 2011, mainly due to
high external tariffs of the Customs Union, which also hindered trade diversification.
Also, it is believed that by joining the CU won only major exporters of
minerals. However, it is worth considering that the current observed results of
the Customs Union received over a short period, and analysts need to wait at
least until 2015 to get a firm grasp of what will be in the long term from the
Customs Union and the Common Economic Space.
When considering
the advantages of the Customs Union and economic integration, we note that at
the same time the division of the market with Belarus and Russia is beneficial
to the national economy as well as increased competitiveness of the economy,
contributing to the quality development of Kazakh business. Moreover, it should
be noted that for foreign companies opening up prospects in the Kazakhstan
market in the form of impediments to their products in countries' customs
triplet ".
According to Western
sources, the US sees the idea of the Eurasian economic integration as an
attempt to restore the dominant role of the Russian Federation on the type of
the Soviet Union among the countries of the former Soviet Union. For example,
A. Kouhen [10] in his article speculates
that the Eurasian Union could jeopardize the stability of the region and
undermine economic and political freedom in Eastern Europe and Central Asia.
Moreover, the Eurasian Union (EAU) can also affect the sovereignty,
independence and political orientation of the neighboring countries. A.Kouhen
also suggests that the Eurasian Union could harm the economy of neighboring
non-States Parties.
However, the
President of the Republic of Kazakhstan, NA Nazarbayev noted that the main
criteria for the formation of the Union of Eurasia should be based on
"economic pragmatism", "voluntary integration",
"equality", "non-interference in the internal affairs of each
other, and respect for sovereignty and the inviolability of state
borders." Moreover, based on the Royal Institute of International Affairs
(Royal Institute of International Affairs) it is known that members of the
Eurasian Economic Commission have made it clear: Eurasian economic integration
- is not a political, military and security organization. In addition, problems
of governance, human rights and the protection will not be discussed by the
Eurasian Economic Union. However, it is important to discuss the legal issues,
the omission of which could weaken the economic integration, for example,
protection of property rights in the Customs Union.
However, Judy
Shelton [11], an economist and
vice-chairman of the US National Endowment for Democracy, in an interview said
that any former Soviet state should think about the future of their country and
to remember the story, remember that coercion was a driving force in the past,
and it is already being used today in Moscow offer Customs Union - an echo of
previous experience. Countries should be alert to the fact that Russia
simplifies interconnection, without legal and political reforms, and does not
require countries to focus on the growth of the rule of law and the fight
against corruption.
Suspicion and
distrust of the union process with Russia and is present in some Kazakh
political scientists and national-patriots who believe that economic
integration will inevitably lead to the loss of hard-won sovereignty of our
country. This distrust of the Russian state is justified by many years of
imperial and Soviet history, which has dropped a lot of suffering to the share
of Kazakhstan. However, others believe that the Eurasian Union - it is the
economic integration of the former Soviet Union on the basis of common history,
language, culture, mentality. In today's world can not do without
regionalization and economic integration, and if Russia really is set to a
positive and long-term cooperation with Kazakhstan, then it is necessary to
prove that the project of the Eurasian Economic Union - a completely new type
of integration of post-Soviet states, based on the inviolability of law and
eliminating pressure and the dominance of power in Moscow.
But surprisingly, in
Russia also has doubts about the alliance with the Central Asian countries. For
example, Russian liberals are of the opinion that the integration with Central
Asia will not improve the economic situation in Russia is unpromising, on the
contrary, it is necessary to strive for intensive cooperation with the West.
Moreover, according to some experts, the emerging Eurasian Union will exist in
a surge of instability in Central Asia , in a critical aggravation of
challenges and threats emanating from the region. Moreover, according to the
latest data, Russia became the second of the most popular countries for
migrants, the report said OON.Po W. Ergeshbaeva [10], the current external
labor migration is beneficial for the countries of Central Asia, in particular
Tajikistan, Kyrgyzstan and Uzbekistan, and if they enter into a common economic
space, it will address many pressing social and economic problems in these
countries. According to W. Ergeshbaevu, the influx of migrant workers to host
countries have more positive aspects than negative, for example, cheap labor,
the solution of demographic problems.
Extension of the
Eurasian economic space through Kyrgyzstan quite realistic, since the Republic
of Kyrgyzstan has made a formal request to join. Tajikistan is also a potential
participant integration, where initial preparations for accession. Apart from
these two countries, the Customs Union and the Common Economic Space are
appealing for Armenia, which has no common border with the Eurasian union.
Armenia has already announced its intention to join the Eurasian Union, it is
no secret that it is economically dependent on Moscow. After all, Russia - this
is the main trading partner of Armenia, which owns 80 percent of its energy
resources. However, it is unlikely the entry of Azerbaijan into the Eurasian
Union because of its conflict with Armenia, moreover, Azerbaijan is currently
conducting a multi-vector policy. Ukraine and Georgia firmly headed for
accession to the European Union. Georgia in 2008, completely torn away from
Russia and even severed diplomatic relations because of the 2008 war over South
Ossetia. South Ossetia (which declared itself an independent republic), in
turn, welcomed the Eurasian Union, but the problem is that it is not recognized
by the international community, including Russia and several small island
states. For its accession is needed at least recognition of its independence
Kazakhstan and Belarus. As for Ukraine, in 2003 Ukraine together with Russia,
Kazakhstan and Belarus announced its intention to form a Common Economic Space,
signed the relevant agreement, but later abandoned the Ukraine this
association, resulting in Russian pressure on it in the form of trade
voyn.Neytralnye Uzbekistan and Turkmenistan are pursuing a policy of economic
and political emancipation of Russia. At the round table in Moscow, organized
by the United Russia party, political analyst Dmitry Orlov proposed to expand
the membership of the Eurasian Union is not only post-Soviet countries, but
also include such States that were historically or culturally close to Russia:
Finland, Hungary, the Czech Republic, Bulgaria, Vietnam, Mongolia, Cuba and
Venezuela.
Thus, the Customs
Union of Belarus, Kazakhstan and Russia is already part of economic integration
between the three Member States and the Eurasian Union will be a continuation
of the Customs Union. Complete view of the Eurasian Economic Union is a common
technical regulations and tariffs in the participating countries, mutual
coordination of labor and immigration laws. Moreover, member countries of the
Eurasian Economic Space will develop a unified banking system, where national
banks and credit institutions shall act within the framework of the single
monetary mechanism. Of course, all this requires planning and preparation,
implementation, monitoring, systematization. Yes, and a lot of time is required
for the efficient and qualitative transformation.
In today's world
the process of regionalization has become a worldwide trend. It can not be
avoided, and the economic integration is not necessary to pursue a policy of
isolationism. After all, to strengthen political and economic security of the
successful collaboration and co-operation in regional economic space needed.
Feelings and distrust of the Eurasian Economic Union - a healthy reaction of
people, because as far as we remember its long history, the Russian had never
be able to interact with the post-Soviet countries on the principles of
equality and non-interference in the internal affairs of the state. However, if
the Eurasian Economic Union will be a new beginning in the history of
post-Soviet countries-participants expect a bright promising future, because at
the heart of the Eurasian Economic Union as regional integration is an
understanding that together participating countries to make the economy
predictable, reduce the effects of global instability and provide new
mechanisms of global governance.
REFERENCES
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16.02.10. ¹35. C.1, 4.
2. Butyrina E. After more than a year after the adoption of the new Law on
Subsoil and the main provisions of the Customs Union lawyers find them in a lot
of obstacles to the activities of subsoil users // Panorama. 02.09.2011. ¹34.
C.6
3. Zholdaubekova G. "Award" for its proximity // RBC Central
Asia. 03.03.10. ¹3. S.10-13
4. Official website of the newspaper "Kazakhstan truth»:
http://www.kazpravda.kz/
5. N. Nazarbayev Eurasian Economic Union: Theory or Reality // News:
http://www.minplan.kz/pressservice/77/5147/
6. V. Putin Prospects of the Eurasian Union // News:
http://www.bnews.kz/ru/news/post/59757/
7. Chatham House, «Eurasian Economic Integration: Rhetoric and Reality:
roundtable seminar», 18 July 2013
8. The Eurasian Economic Commission (Eek) from 09.14.2013, available on
http://www.eurasiancommission.org/ru/Pages/about.aspx
9. Tengrinews: Ukrainian political analyst saw signs of a possible exit
from Kazakhstan Customs Union, is available on
http://news.mail.ru/inworld/kazakhstan/economics/14509357/
10. Cohen, «Russia's Eurasian Union Could Endanger the Neighborhood and US
Interests», The Heritage Foundation: Leadership for America, No.2804. - June
14, 2013
11. Chatham House, «Eurasian Economic Integration: Rhetoric and Reality:
roundtable seminar», 18 July 2013