Евразийское экономическое сообщество

Annex

to Resolution of the EurAsEC

Interstate Council

6 October 2007, No. 346

REPORT

on formation of the legal framework

for the customs union

Upon the resolution of the Heads of the EurAsEC member states of August 16, 2006 No. 313 (Annex 1) the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation are charged with preparation and signing of the package of documents necessary for the formation of the legal framework of the customs union.

In pursuance of the aforesaid resolution:

– the strategy for the creation of the customs union was elaborated;

– comparative analysis of documents for the establishment of the customs union within the framework of EurAsEC and EES (European Economic Space) was performed;

– the component structure of the customs union has been agreed (Annex 2) providing for unification of international commodity trade regulation, establishment of common customs territory and supranational organs for customs union management;

– based on the aforesaid, a package of 13 documents was prepared and agreed (Annex 3); together with the operative international treaties this will enable the development of a foundation for the customs union’s contractual framework;

– the draft of the Action Plan for the establishment of the customs union within the framework of the Eurasian Economic Community was elaborated. The document establishes the sequence of activities for the practical implementation of the main provisions of the international treaties forming the legal framework of the customs union, and stipulates its phased formation from 2007 to 2010.

Work on the drafts of documents was carried out in the context of the international principles, generally accepted norms and regulations vested in multilateral agreements of the World Trade Organization.

The key documents determining the functioning of the customs union that form its institutional structure and determine the mechanism for other States to accede to the customs union shall be submitted for signature by the Heads of State at a meeting of the Interstate Council:

Protocol on introducing amendments to the Treaty on the establishment of the Eurasian economic community of October 10, 2000;

Treaty on the commission of the customs union;

Treaty on the establishment of a common customs territory and the formation of the customs union;

Protocol on the procedure for bringing into force international treaties aimed at the formation of the contractual framework of the customs union, withdrawal from the treaties and accession to the treaties;

Action Plan for the formation of the customs union within the framework of the Eurasian Economic Community;

The other 9 drafts of international treaties from the prepared package of 13 documents are proposed for adoption at the level of Heads of State.

The Parties have fulfilled their respective internal procedures necessary for signing the aforesaid documents by the Heads of State.

Based on the results of coordination of all the submitted documents there have been revealed principal differences on Article 7 of the draft of the Treaty on the customs union commission, concerning the distribution of the votes and the procedure for the adoption of decisions by the commission:

The position of the Republic of Kazakhstan is as follows: “Each representative of the Party shall be entitled to one vote. The decisions shall be adopted by a simple majority vote, whereas decisions on sensitive issues shall be adopted by consensus. The list of issues adopted by consensus shall be approved by the supreme organ of the customs union in accordance with the treaties forming the legal framework of the customs union”;

The position of the Russian Federation and the Republic of Belarus is as follows: “The votes shall be distributed among the Parties in the following way: the Republic of Belarus – 21.5; the Republic of Kazakhstan – 21.5; the Russian Federation – 57. The decisions shall be adopted by the majority of two-thirds of the votes, whereas decisions on issues of special importance for the Parties, as well as those prescribed by the international treaties forming the contractual framework of the customs union, shall be adopted by consensus”.

The aforesaid differences are proposed to be considered by the Heads of the three States.

For the purpose of fulfilling the aforesaid Resolution of the Interstate Council the Parties together with the Secretariat of the Integration Committee of EurAsEC drafted the documents for formation of the next stage of integration – the common economic space: the component base of the common economic space has been agreed (Annex 4), and on this basis 25 drafts of treaties currently under negotiation have been prepared (Annex 5).

In order to implement the Resolution of the Interstate Council of EurAsEC of August 16, 2006, No. 313, and for the purpose of forming the legal framework of the customs union, the Heads of the member states of EurAsEC are required to:

adopt at a meeting of the Interstate Council of EurAsEC the Protocol on the introduction of amendments to the Treaty on the Establishment of the Eurasian Economic Community of October 10, 2000, in accordance with which the Interstate Council of EurAsEC shall perform the functions of the supreme organ of the customs union. Decisions on the issues concerning the formation and functioning of the customs union shall be made by the states participating in the customs union, whereas other states shall only be entitled to an advisory vote. The competence of the Eurasian Economic Community Court shall also expand and include the function of resolving disputes within the framework of the customs union;

give the Parties’ governments together with the Integration Committee of EurAsEC the task of continuing the work related to formation of the legal framework of the common economic space and report on it at the next meeting of the Interstate Council of EurAsEC (at the level of the Heads of State).

Within the framework of the supreme organ of the customs union it is proposed to:

adopt:

the Treaty on the commission of the customs union;

the Treaty on the establishment of a common customs territory and formation of the customs union;

the Protocol on the procedure for bringing into force international treaties aimed at forming the contractual framework of the customs union, withdrawal from them and accession to them;

approve the List of international treaties forming the basis of the customs union’s contractual framework;

approve the Action Plan for the formation of the customs union within the framework of the Eurasian Economic Community;

charge the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation with the following:

signing at the next meeting of the Interstate Council of EurAsEC (at the level of the Heads of Government) documents aimed at formation of the contractual framework of the customs union;

ensuring execution of the Action Plan for formation of the customs union within the framework of the Eurasian Economic Community.

Annex