April 2013. Trade Policy Priorities Trade Policy Multilateral Level UNWTOAPECCIS Bilateral Level EUChinaUkraineViet NamEFTA New Zealand Tackling Trade

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

| 2

| 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

| 7

| 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

| 10

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

| 11

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.

| 12

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)

| 13

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)

| 14

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

| 15

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

| 16

| 17


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


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


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


Implementation of trade remedy measures (collection of duties, administration of quotas)

| 18

| 19


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


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


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


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


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.


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

| 23

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

| 24

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

| 25

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

http://www.eecommission.org/