Common Economic Space (CES) started

Posted on: 09/05/2012

1st January 2012 sees the work begin to further develop the Common Economic Space (CES), established on the basis of the Customs Union of Belarus, Kazakhstan and Russia which came into effect on July 1, 2010 and as part of the CES, business entities of the three countries are guaranteed freedom of movement of goods, services, capital and labor, as well as equal working conditions.  They see the EEC as the first step toward a bloc modeled on the European Union by 2015. In their Eurasian Economic Union (EEU), they aim to avoid the problems they see in their EU model.

The Common Economic Space (CES) was launched on 1 January 2010 within 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

Currently, all the CES members ratified 17 major international agreements to ensure full operation of the new entity. In particular, the barriers were legally lifted on crude oil, refined petroleum products and electricity. In addition, the parties agreed on pricing and tariff policy in the field of transportation.

Among the important agreements within the CES one can also mention the agreement on macroeconomic policy, on common principles and rules of competition, the provision of industrial subsidies, as well as that on the monetary policy.

Another innovation, introduced on January 1, 2012, is the uniform rules for the state (municipal) procurement, which will provide equal access to economic entities of the three countries to the national markets, will promote fair competition, efficiency and transparency in implementation of procurement, as well as reduce corruption in this area.

Under the agreement, Belarus and Russia will purchase at electronic auctions from January 1, 2012. Kazakhstan plans to join the system on July 1, 2012. National procurement regime will be introduced in all three states on January 1, 2014.

Logo for the Eurasian Economic Community

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