APR News

The official website of East Russia Economic Forum has published a rough draft of the event’s working program.

Three thematic tracks will be presented in the program: New Economic Policy in East Russia, The Strength of East Russia, and The Future of the Asia-Pacific Region.

The main theme for discussion with investors will be new investment opportunities in East Russia. “Our expectations are primarily tied to making sure that the mechanisms and instruments of conducting business we have created are presented in a new way, and advanced with the goal of their subsequent practical implementation,” emphasized Russian Minister for Development of the Far East Alexander Galushka.

The validity of the APEC Business Travel Card will be extended from three to five years starting from September 1, 2015.

The APEC Business Travel Card will offer businesspeople five-year, short-stay, multiple-entry to participating APEC member economies and priority lane access at key immigration checkpoints in member economy airports. Applications lodged on or before 31 August 2015 are to be granted an APEC Business Travel Card valid for three years. Applications lodged on or after 1 September 2015 are to be granted a card valid for five years.

WTO members formally adopted Kazakhstan’s WTO terms of entry at the General Council meeting on 27 July 2015, in the presence of Kazakhstan’s President Nursultan Nazarbayev. Kazakhstan will have until 31 October 2015 to ratify the deal to formally become a WTO member.

WTO Director-General Roberto Azevêdo and President Nazarbayev signed the Protocol on the Accession of Kazakhstan following the General Council’s approval of the country’s WTO terms of entry. The document is subject to domestic ratification by Kazakhstan’s Parliament by 31 October 2015.

According to Roberto Azevêdo, “This is a truly historic occasion for Kazakhstan, and for the WTO. In approving Kazakhstan’s accession protocol we are concluding almost two decades of negotiations. Moreover, we are delivering a result which will have a major economic impact, a major systemic impact, and a major human impact. Because, crucially, the benefits of accession can help to create jobs, raise incomes, and improve people’s lives. For Kazakhstan, this is recognition of the efforts you have made over recent years and your commitment to this process. It is an endorsement of the extensive programme of reforms which you have undertaken. And it is a message to the world that Kazakhstan is open for business. It brings the organization closer to the heart of Central Asia. And it brings us closer to our goal of universal membership.”

As Kazakhstan’s President Nursultan Nazarbayev said, “During the negotiations of our accession to the WTO, the configuration of Kazakhstan’s economy has changed dramatically. Today, we are doing business with 185 states of the world. Over the past years, we have come a long way to integrate Kazakhstan’s economy into the global market. We have proceeded to implement ambitious institutional reforms. They include further development of international economic cooperation. Kazakhstan will soon start working under the WTO rules. Yet for a long time now, we have been shaping our economic policies in the spirit of the WTO, by removing barriers, acting as an engine of regional integration and promoting the principles of open collaboration.”

Full speech by Roberto Azevêdo
Full speech by Nursultan Nazarbayev
Press-release at the WTO web-site

On July 10, in Moscow, the Minister in charge of Customs Cooperation of the Eurasian Economic Commission Vladimir Goshin held a meeting with the Chairman of the General Customs Administration of the People's Republic of China Yu Guangzhou where they discussed issues of interaction in the sphere of customs regulations.

The meeting was held under the negotiations on conclusion of the Agreement on information exchange on goods and vehicles of international transportation moved across the customs borders of the Eurasian Economic Union (the EAEU) and the People's Republic of China.

During the meeting, Vladimir Goshin emphasized that a "final result of joint work will be a mutually beneficial Agreement which will contribute to facilitation and development of trade between the PRC and the Union's Member States through expansion of customs cooperation, increase of efficient customs control and provision of credibility of goods and transport vehicles declaration."

The Parties noted the importance of the Agreement being developed for mutual conjugation of processes of building the Silk Road Economic Belt and the Eurasian Economic Union.

"The Eurasian Economic Commission highly appreciates the opportunities for economic interaction which are being opened before the EAEU and PRC," the Minister in charge of Customs Cooperation of the EEC said. "The EAEU unites key countries located along the Silk Road. We hope that, in the outlook, close cooperation of our countries will allow implementing global idea of the PRC on creation of the Silk Road Economic Belt that will connect China and Europe through the EAEU States." Strengthening interaction under the EAEU and the Silk Road may give a start to further establishment of a common economic space of the whole Eurasian continent."

Regular exchange of information on goods and vehicles of international transportation moved across the customs borders of the Union and PRC, correlation of such data and identification of their discrepancy will not only contribute to building confidence between the Union and PRC, but also positively influence on effectiveness of prevention, identification and elimination of violations of the Customs Legislation of the Union and PRC. Information exchange will also create favourable conditions contributing to fastening customs operations and conducting customs control.

According to the agreements, the PRC's Customs Administration after signing the Agreement will present their colleagues from the EAEU information on goods which are exported from the PRC to the Union Member States. In its turn, the EAEU Customs Administration will share information on goods which are exported from the EAEU to the PRC.

Possibility to organize exchange of information on goods transited from the PRC through the Union Member States to third countries and on goods transited from the Union through PRC to third countries will be discussed during further negotiations. This information will be used for customs purposes by the authorized customs bodies of the Union Member States and PRC.

To date, two rounds of negotiations have been held. The third round of negotiations is scheduled for August 24-27 in Irkutsk (the Russian Federation).

Reference:

Negotiations of the EAEU and PRC on conclusion of the Agreement on information exchange on goods and vehicles of international transportation moved across the customs borders of the EAEU and PRC were started according to Decision No.66 of the Supreme Eurasian Economic Council, dated May 29, 2014. Directives of the negotiating delegation of the Union and its structure were approved by Decision No.101 of the EEC Council, dated November 12, 2014. The Member of the Board – Minister in charge of Customs Cooperation of the EEC Vladimir Goshin ​was appointed as the Head of the delegation, the Director of the Customs Infrastructure Department of the EEC, Vladimir Skiba was appointed as the Deputy Head.

Source: Eurasian Economic Commission official web-site

On July 2, in the headquarters of the UN Economic Commission for Europe, a bilateral meeting of the Member of the Board - Minister in charge of the Development of Integration and Macroeconomics of the Eurasian Economic Commission Tatyana Valovaya with the Executive-Secretary of UNECE Christian Bach was held.

The Parties discussed aspects of the expert work of the two organizations, conducted under the signed Memorandum of Understanding, as well as promising directions of further joint work of the Eurasian Economic Commission and UN Economic Commission for Europe.

The Minister of the EEC noted that, given the mandate and the specificity of the activity, UNECE could provide a platform to discuss areas of cooperation between the European Commission and the Eurasian Economic Commission, as well as conditions for creation of a common economic space of the two unions - the European and Eurasian ones.

In its turn, the UNECE Executive-Secretary emphasized the importance of the ongoing cooperation with the Eurasian Economic Commission. He also noted the interest of the UN Economic Commission for Europe in promoting a dialogue between the European Union and the Eurasian Economic Union.

Following the talks, the Parties agreed to continue the dialogue on development of trilateral contacts between the EU, the EEC and UNECE.

Source: Eurasian Economic Commission official web-site

On July 2, at the headquarters of the United Nations Conference on Trade and Development (UNCTAD) at the Palace of Nations (Palais des Nations) in Geneva the bilateral talks of the Member of the Board - Minister in charge of the Development of Integration and Macroeconomics of the Eurasian Economic Commission Tatyana Valovaya and the Deputy Secretary-General of UNCTAD Joakim Reiter were held.

The Minister of the EEC noted the constructive interaction that was developed between the EEC and UNCTAD. The Commission representative emphasised the importance of the active work being executed by the experts of the two organizations within the framework of the signed Memorandum on Cooperation.

During the meeting, Tatyana Valovaya spoke about the process of decision-making in the EEC, as well as about the ongoing work of the Commission to establish an integration dialogue between various countries and regional associations.

"Given the existing constructive cooperation between the EEC and UNCTAD, we invite to consider the possibility of organizing joint analytical work on the study of the integration processes within the framework of the EAEU," the EAEU Minister said.

The Deputy Secretary-General of UNCTAD emphasized that there was a considerable interest among the Member States to the ongoing integration processes in the Eurasian space, and also noted that the United Nations Conference on Trade and Development paid special attention to examination of regional integration of developing countries and countries in transition.

Upon completion of negotiations, Joakim Reiter noted that UNCTAD had a solid expert support and competences in the field of investigation of regional integration processes, and proposed to form specific areas of expert and analytical activities that could be developed in cooperation with the EEC.

Source: Eurasian Economic Commission official web-site

On July 2, in Brussels (Belgium) at the 11th annual Eurasian Tax Forum the Member of the Board - Minister in charge of Economy and Financial Policies of the Eurasian Economic Commission Timur Suleimenov stated the need to deepen the interaction of the Eurasian Economic Union (the EAEU) with the European Union (the EU).

The Forum took place from June 30 to July 2 in Brussels, at the headquarters of the World Customs Organization (WCO). It was attended by representatives of the Eurasian Economic Commission, the tax authorities of the Member States of the Eurasian Economic Union, the European Union and the International Tax and Investment Centre (ITIC).

The forum addressed the problematic issues of regional trading blocs in the light of globalization of economies, minimization of conflicts and polarization in the world of competing trading blocs.

Participants of the Forum also discussed the idea of​ "integration of integrations" within the framework of cooperation between the EAEU and the EU. Particular attention was paid to activation of the eastern direction of development of the Eurasian Economic Union. As the Minister in charge of Economy and Financial Policy of the EEC emphasised, there are enough junction points for the two integration projects, as trading blocs of the EAEU and the EU, in terms of international trade rules, as of now apply the same principles of taxation. The essence of these principles is protection against discrimination, double taxation and unfair competition. Timur Suleimenov noted that thanks to the EAEU only one customs border is left between East and South Asia and the European Union.

The Minister of the EEC expressed the opinion that the project "Silk Road Economic Belt" implemented by the Eurasian Economic Union in cooperation with the People's Republic of China would add an additional economic momentum to the development of the Union. "The participation of the Member States of the EAEU in this project will allow creating effective economic space from the Atlantic to the Pacific," the speaker of the EEC stated. In addition, according to Timur Suleimenov, the functioning of the Eurasian Economic Union itself would be a powerful impetus for the economic development of the Central Asian region, given the prospects for enhanced cooperation of the Member States of the EAEU with major international trading partners.

At the Forum, it was also said that WTO, due to the rules of granting the national treatment for trade, did not include taxation in its main priorities. Moreover, WTO applies principles of interaction of legal regulation in taxation with legal regulation in trading of goods, which should be reflected in national tax codes of WTO Member States. At the same time, in the EAEU, whose regulatory practice incorporates WTO rules and regulations, the principle of tax sovereignty is retained, which does not contradict the principles of discrimination, double taxation and unfair competition.

Participants of the Forum also discussed improvement of tax administration, information exchange and harmonization of excise rates.

Source: Eurasian Economic Commission official web-site

On June 25, 2015 in Vienna (Austria), following the results of the 43rd session, the Industrial Development Board of the United Nations Industrial for Industrial Cooperation (UNIDO) decided to grant to the Eurasian Economic Commission the status of an "observer" at UNIDO.

The status of an "observer" will enable the EEC to participate in the work of management bodies of UNIDO (General Conference, Industrial Development Board), and it will contribute to the mutually beneficial cooperation between the EEC and UNIDO in areas of mutual interest.

Application within the Eurasian Economic Union of the world's best practices and experiences that UNIDO has will promote the effective implementation of the goals of industrial policy pursued by the Member States of the Union. "It is important for us, because we are preparing a list of promising industrial projects within the EAEU and would like to implement them as efficiently as possible, including with the assistance of UNIDO," - emphasised the Member of the Board - Minister in charge of Industry and Agroindustrial Complex of the EEC Sergey Sidorskiy.

Participation of the Commission in the work of UNIDO in the status of an "observer" will also allow studying and rationally using within the Eurasian Economic Union capacities and experience of UNIDO in creating effective development projects and programs in the industrial sector. According to Sergey Sidorskiy, this, in its turn, will benefit the development of industrial cooperation not only within the Union, but also outside it.

Source: Eurasian Economic Commission official web-site

On June 24, under the 43rd session of the UNIDO Industrial Development Board, a working meeting of the Member of the Board - Minister in charge of Industry and Agroindustrial Complex of the Eurasian Economic Commission (EEC), Sergey Sidorskiy and the Director General of the United Nations Industrial Development Organization (UNIDO), Li Yong dedicated to the issues of development of cooperation between the Commission and this organization was held in Vienna (Austria). The meeting was also attended by the Ambassadors of the Member States of the Eurasian Economic Union.

Commenting on the importance of the experience and capacity of UNIDO for development of industrial cooperation between the Member States of the Eurasian Economic Union, the Minister noted that the first step for establishment and development of consistent work with UNIDO was signing of a joint declaration on cooperation of the EEC and UNIDO on October 30, 2014.

Sergey Sidorskiy thanked Li Yong for prompt examination of the Main Directions for industrial cooperation in the EAEU, which were supported by UNIDO experts during the consultations held with the representatives of Industrial Policy Department in May 2015.

The Director of Industrial Policy Department Vladimir Maltsev reported on the development of an action plan, which would be the basis for the EEC's and UNIDO's plans in their further joint work. First of all, this work includes development and implementation of innovations, knowledge sharing and mutual technologies transfer; trade capacity building and exports development; environment protection and increase of enterprises energy efficiency; expansion of business infrastructure in the region, as well as business activities development, investments attraction and improvement of technological services for small and medium-sized enterprises.

During the meeting, Sergey Sidorskiy paid particular attention to the necessity of interaction with the Eurasian Development Bank to finance cooperation projects that were a priority for the economies of the Member States of the EAEU.

Li Yong highly appreciated the proposals on mutual cooperation and offered at an early stage to identify the most important pilot projects to create synergies between the EEC and UNIDO.

The Parties agreed to adopt the final version of the Program of cooperation of the EEC and UNIDO during the visit of Li Yong to Moscow in the second half of 2015.

Source: Eurasian Economic Commission official web-site

On June 24, under of the Eurasian Economic Commission (EEC), the meeting of the Member of the Board - Minister in charge of Technical Regulation of the EEC Valery Koreshkov and the Director General of the Food and Agriculture Organization of the UN (UN FAO) Jose Graziano da Silva took place.

The meeting was also attended by the Head of the UN FAO Regional Office for Europe and Central Asia Vladimir Rakhmanin, Head of the UN FAO for Communication with Russia Igor Shcherbak, Russian Foreign Ministry officials, Head of the Sanitary, Phytosanitary and Veterinary Measures Department of the EEC Oleg Arnautov, Head of the Agroindustrial Policy Department of the EEC Roman Romashkin.

Valery Koreshkov noted that the Commission makes a point of cooperation with the UN FAO. It contributes to harmonization of the legal framework of the Eurasian Economic Union (EAEU) with international standards, guidelines and recommendations.

FAO activity on development of organic agriculture, seed production, unification of genomic selection and evaluation methods used in cattle breeding, forming the risk assessment system, while ensuring food safety, improvement of animal product identification, registration and traceability system, ensuring sanitary and epidemiological welfare of the population, phytosanitary security is of a great interest for the Union.

José Graziano da Silva noted the relevancy of cooperation between the EEC and FAO for development of the Eurasian region, stressed the importance of participation of the EEC staff in seminars organized by FAO. He also told about opening offices for communication with FAO in Moscow and Astana, the expansion of the organization activity in Kyrgyzstan and Armenia.

At the meeting held, the Parties identified the priority areas for cooperation:

- cooperation in the field of organic agriculture, seed production, unification of genomic selection and evaluation methods used in cattle breeding;

- application of risk assessment methodology while ensuring food safety;

- creation of methodology on food safety information accounting and collection;

- exchange of experience in order to improve animal product identification, registration and traceability systems;

- ensuring phytosanitary security of the territories in international trade;

- cooperation on information exchange.

José Graziano da Silva proposed the Eurasian Economic Commission to consider membership in the UN FAO. According to him, this would unify various country approaches to addressing global issues of food security and issues related to climate change.

Source: Eurasian Economic Commission official web-site