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Customs Union of Kazakhstan, Russia and Belarus

Kazakhstan, Russia and Belarus are approaching the initiation of the Customs Union. Nursultan Nazarbayev, Dmitriy Medvedev and Alexandr Lukashenko have settled the terms on creation of the new economic alliance. The customs union’s mechanism and its development will start from the 1st of January 2010. Experts expect that all the small drawbacks of the new system will be eliminated over the next year and customs borders will vanish inside the alliance afterwards. According to economists’ estimations, the customs union will enable its members to raise the GDP rate at least by 15% already in five years.
In 1994, the Kazakhstani leader unveiled the idea of a single economic union on post-Soviet space. Then it was perceived ambiguously. In 2000, treaty establishing the Eurasian Economic Community was signed in Astana. It includes Kazakhstan, Russia, Belarus, Kyrgyzstan and Tajikistan. The main purpose of association is formation of a single customs territory. In 2007, Astana, Moscow and Minsk started real embodiment of that idea. For two years, The countries managed to agree on most of the positions, 51 agreements on the legal basis of union were signed, and at the Minsk meeting the Presidents agreed on the conditions of a new union. Most importantly, positions on the Customs Code and single fare are coordinated.

Nursultan Nazarbayev, President of the Republic of Kazakhstan:
- The main historical event of the EEC Interstate Council is the establishment of Customs Union of three countries: Belarus, Kazakhstan, Russia, the adoption of a unified customs tariff agreement, which will enter into force on 1 January 2010.

On January 1, 2010 the mechanism of Customs Union will be launched and its development will be begun. The experts hope all defects of new system will be eliminated the next year and then customs borders will disappear inside the union.

Vladimir Goshin, first deputy chairman of State Customs Committee of Belarus:
- I think that is very positive and proper motion, because the whole world is divided into economic blocs.

Nicholay Panteley, Minister of Communications and Informatization of Belarus:
- Prospects are very good, very serious and gaining of approval of both sides will allow us to increase cooperation, including business development, our well-known brands in Kazakhstan. I am totally in favor for this project and I am very grateful to the President of your country for his using his political weight and enormous political potential, promotes the project, and I think this project will undoubtedly be successful.

Pavel Emelyanov, director of company on producing of power equipment:
- Of course, I support this idea. Any removal of borders, any barriers, all that will help develop and this is just fine. Our uniting into the Customs Union and our closer inter relations will help us to develop our business and life more dynamically. We will have only benefit from this. The feww barriers, the better life.

On the one hand, the mechanism of free movement of goods is a definite advantage, but on the other, it will contribute to the toughening of competition between Kazakh, Russian and Belarus producers. Therefore, enterprises will have to raise the quality of their products and strive for cutting their prices at the same time.

Nursultan Nazarbayev, President of Kazakhstan:
- We are creating a great market, accounted for 170 million people. The total industrial capacity of the two countries is 600 billion US dollars, joint oil reserves accounts for 90 billion barrels and becomes a key player at the market of energy resources. The total volume of agriculture of the two countries accounts to 112 billion US dollars, including 12% of the world output of wheat and 17% of its export. The total GDP of Kazakhstan and Belarus accounts for 2 trillion US dollars and a turnover of 900 billion US dollars.

The elimination of the customs frontier is the first stage of the Eurasian integration process. The next one lies in securing the free movement of people and funds. This will result in the creation of a full-scale economic union like the European one. Presidents are planning to assemble for a special summit on the 18th of December this year in Almaty to discuss these issues. Eurasian initiative of the Kazakhstani leader allowed to create the most effective integration mechanism for post-Soviet space.

Nursultan Nazarbayev, President of the Republic of Kazakhstan:
- I am sure that in future customs union will form the basis for creating higher level of integration, single economic space, to which we aspire. In fact, we will create a single economic complex with the general rules, approaches of development. This will be the basis for the formation of a Eurasian Economic Union, in which there will be no restrictions on the joint activity, movement of people, goods and capital across the Union in any form of shared activity.

Analysts believe that sooner or later other CIS neighbor-states will start joining Kazakhstan, Russia, and Belarus. For example, Kyrgyzstan has already expressed its intention to become a member of this union. Kurmanbek Bakiyev noted that the status of WTO member does not stand in the way of that. The chairmanship of Belarus in the EAEC has come to an end. Kazakhstan is to chair this community 2010.

Anatoly Morozevich, rector of the Academy of Management under the President of Republic of Belarus:
- President of Kazakhstan is one of the most competent politicians on post-Soviet area and in Europe too. Talking about integration was quite difficult since the collapse of the Union, however, your President found the courage to speak about the need for unity. And this is significant, I think that is appreciated not only by politicians.