Vladimir Putin: New integration project for Eurasia - the future that is born today
On January 1, 2012, the most important integration project will start - the Single Economic Space of Russia, Belarus and Kazakhstan. A project that is, without exaggeration, historical a milestone not only for our three countries, but for all states in the post-Soviet space.
The path to this milestone was not easy and sometimes winding. It began twenty years ago when, after the collapse of the Soviet Union, the Commonwealth of Independent States was created. By and large, the model was found that helped preserve the myriad civilizational, spiritual threads that unite our peoples. Save production, economic and other ties, without which it is impossible to imagine our life.
You can evaluate the effectiveness of the CIS in different ways, talk endlessly about its internal problems, about unrealized expectations. But it’s hard to argue with the fact that the Commonwealth remains an indispensable mechanism for bringing together positions and developing a common point of view on the key problems facing our region and brings visible, concrete benefits to all its participants.
Moreover, it was the CIS experience that allowed us to launch multi-level and multi-speed integration in the post-Soviet space, to create such popular formats as the Union State of Russia and Belarus, the Collective Security Treaty Organization, the Eurasian Economic Community, the Customs Union and, finally, the Common Economic Space.
It is characteristic that in the period of the global financial crisis, which forced the states to look for new resources for economic growth, the integration processes received an additional impetus. We objectively approached the idea of seriously modernizing the principles of our partnership, both in the CIS and in other regional associations. And they focused primarily on the development of trade and industrial relations.
In essence, this is about turning integration into an understandable, attractive for citizens and business, a sustainable and long-term project that does not depend on the current political and any other market conditions.
I note that such a task was posed when creating the EurAsEC in 2000. And ultimately, it was the logic of close, mutually beneficial cooperation, understanding of the common strategic interests of Russia that led Russia, Belarus and Kazakhstan to the formation of the Customs Union.
1 July 2011 of the year at the internal borders of our three countries was removed control over the movement of goods, which completed the formation of a full-fledged single customs territory with clear prospects for the implementation of the most ambitious business initiatives. Now from the Customs Union we are taking a step towards the Common Economic Space. We are creating a huge market with more than 165 million consumers, with unified legislation, free movement of capital, services and labor.
It is fundamentally important that the SES will be based on concerted actions in key institutional areas - in macroeconomics, in ensuring competition rules, in the field of technical regulations and agricultural subsidies, transport, tariffs of natural monopolies. And then - and on a single visa and migration policy, which will remove the border control at internal borders. That is, to creatively apply the experience of the Schengen agreements, which have become a blessing not only for the Europeans themselves, but also for all who come to work, study or relax in the EU countries.
I will add that now no technical arrangement of the 7 thousand of the Russian-Kazakhstan border will be required. Moreover, qualitatively new conditions are being created for enhancing cross-border cooperation.
For citizens, the removal of migration, border and other barriers, the so-called “labor quotas” will mean the possibility to choose where to live, get an education, work without any restrictions. By the way, in the USSR, with its institute of registration, there was no such freedom.
In addition, we significantly increase the volume of goods for personal consumption, which can be imported duty free, thereby saving people from demeaning checks at customs posts.
Extensive opportunities open up for business. I am talking about new dynamic markets, where uniform standards and requirements for goods and services will apply, and in most cases unified with European ones. This is important, because now we are all moving to modern technical regulations, and a coordinated policy will allow us to avoid technological gaps, the trivial incompatibility of products. Moreover, each of the companies of our countries in any state - member of the SES will actually enjoy all the advantages of domestic producers, including access to government orders and contracts.
Naturally, in order to gain a foothold in such an open market, businesses will have to work on their efficiency, reduce costs, and invest resources in modernization. Consumers will benefit from this.
At the same time, we can talk about the beginning of this “competition of jurisdictions”, about the struggle for the entrepreneur. After all, every Russian, Kazakh, Belarusian businessman gets the right to choose - in which of the three countries does he have to register his company, where to do business, where to engage in customs clearance of goods. This is a serious incentive for national bureaucracies to engage in improving market institutions, administrative procedures, and improving the business and investment climate. In a word, to eliminate those “bottlenecks” and gaps, which have never been reached before, to improve the legislation in accordance with the best world and European practice.
At one time, it took the Europeans 40 years to go from a European coal and steel union to a full-fledged European Union. The formation of the Customs Union and the SES is much more dynamic, since it takes into account the experience of the EU and other regional associations. We see their strengths and weaknesses. And this is our obvious advantage, which allows avoiding mistakes, preventing reproduction of various kinds of bureaucratic overhangs.
We are also in constant contact with the leading business associations of the three countries. We discuss controversial issues, we consider constructive criticism. In particular, the discussion at the Business Forum of the Customs Union, which was held in Moscow in July of this year, was very useful.
I repeat: for us it is very important that the public of our countries, businessmen perceive the integration project not as upper bureaucratic games, but as an absolutely living organism, a good opportunity for the realization of initiatives and success.
So, in the interests of business, it has already been decided to begin the codification of the legal framework of the Customs Union and the SES so that economic actors do not have to make their way through the “forest” of numerous paragraphs, articles and reference norms. Only two basic documents will be enough for them to work - the Customs Code and the Codified Treaty on the Customs Union and the SES.
Since January 1, the EurAsEC Court will also work in full format. Not only the states, but also those involved in economic life will be able to go to court on all the facts related to discrimination, violation of competition rules and equal business conditions.
The principal feature of the Customs Union and the SES is the presence of supranational structures. They also fully include such a basic requirement as minimization of bureaucratic procedures and focus on the real interests of citizens.
In our opinion, the role of the Commission of the Customs Union, which already now has significant powers, should increase. Today there are about forty of them, and in the future - already within the framework of the EEA - there will be more than a hundred. This includes the authority to make a number of decisions on competition policy, on technical regulations, on subsidies. Solving such complex tasks is possible only by creating a full-fledged, permanent structure - compact, professional and efficient. Therefore, Russia has put forward a proposal to create a KTS Collegium with the participation of representatives of the “troika” states, who will work as independent, international officials.
The construction of the Customs Union and the Common Economic Space lays the foundation for the formation in the future of the Eurasian Economic Union. At the same time, there will be a gradual expansion of the circle of participants in the Customs Union and the SES due to the full involvement of Kyrgyzstan and Tajikistan.
We do not dwell on this and set ourselves an ambitious task: reach the next, higher level of integration - the Eurasian Union.
How do we see the prospects and contours of this project?
Firstly, it is not a question of re-creating the USSR in one form or another. It is naive to try to restore or copy what is already left in the past, but close integration on a new value, political, economic basis is the imperative of the time.
We propose a model of a powerful supranational association capable of becoming one of the poles of the modern world and at the same time playing the role of an effective “link” between Europe and the dynamic Asia-Pacific region. This means, among other things, that on the basis of the Customs Union and the SES, it is necessary to move to closer coordination of economic and monetary policy, to create a full-fledged economic union.
The addition of natural resources, capital, strong human potential will allow the Eurasian Union to be competitive in the industrial and technological race, in competition for investors, for the creation of new jobs and advanced production. And along with other key players and regional structures - such as the EU, the USA, China, APEC - to ensure the sustainability of global development.
Secondly, the Eurasian Union will serve as a kind of center for further integration processes. That is, it will be formed by the gradual merging of existing structures - the Customs Union, the Common Economic Space.
Third, it would be a mistake to oppose the Eurasian Union and the Commonwealth of Independent States. Each of these structures has its place and its role in the post-Soviet space. Russia, together with its partners, intends to actively work on improving the institutions of the Commonwealth, saturating its practical agenda.
In particular, we are talking about the launch of specific, understandable, attractive initiatives and joint programs in the CIS. For example, in the field of energy, transport, high technology, social development. There are great prospects for humanitarian cooperation in science, culture, education, cooperation in the regulation of labor markets, and the creation of a civilized environment for labor migration. We inherited a large legacy from the Soviet Union - this is the infrastructure, the existing production specialization, and the common linguistic, scientific and cultural space. Sharing this resource for development is in our common interest.
In addition, I am convinced that the most liberalized trade regime should become the economic basis of the Commonwealth. At the initiative of Russia, as part of its chairmanship in the CIS in 2010, a draft of a new Free Trade Zone Agreement was prepared, based, by the way, on the principles of the World Trade Organization and aimed at the full-scale removal of various barriers. We count on serious progress in the coordination of positions on the Treaty during the next meeting of the Council of the CIS Heads of Government, which will take place very soon - in October of 2011.
Fourth, the Eurasian Union is an open project. We welcome the accession of other partners, above all the countries of the Commonwealth. At the same time, we are not going to rush or nudge anyone. This should be a sovereign decision of the state, dictated by its own long-term national interests.
Here I would like to touch on one, in my opinion, a very important topic. Some of our neighbors explain their reluctance to participate in advanced integration projects in the post-Soviet space by the fact that this is allegedly contrary to their European choice.
I think this is a false fork. We are not going to shut ourselves off from anyone and oppose anyone. The Eurasian Union will be built on universal integration principles as an integral part of a Greater Europe united by common values of freedom, democracy and market laws.
Back in 2003, Russia and the EU agreed to form a common economic space, coordinate the rules of economic activity without creating supranational structures. In the development of this idea, we suggested that the Europeans together think about creating a harmonious community of economies from Lisbon to Vladivostok, about a free trade zone and even more advanced forms of integration. Forming a coherent policy in the field of industry, technology, energy, education and science. And, finally, on the removal of visa barriers. These proposals are not hanging in the air - they are discussed in detail by their European colleagues.
Now the Customs and, in the future, the Eurasian Union will become a participant in the dialogue with the EU. Thus, entering into the Eurasian Union, in addition to direct economic benefits, will allow each of its members to integrate into Europe more quickly and in stronger positions.
In addition, an economically logical and balanced partnership system of the Eurasian Union and the EU can create real conditions for changing the geopolitical and geo-economic configuration of the entire continent and would have an undoubted positive global effect.
Today it is obvious that the global crisis that broke out in 2008 was structural in nature. We still see his acute relapses. The root of the problems is in the accumulated global imbalances. It is very difficult to develop post-crisis models of global development. For example, the Doha Round has practically stalled, there are objective difficulties inside the WTO as well, the very principle of free trade and open markets is experiencing a serious crisis.
In our opinion, the solution can be the development of common approaches, as they say, “from below”. First - within the existing regional structures - the EU, NAFTA, APEC, ASEAN and others, and then - through a dialogue between them. It is from such integration “bricks” that the more stable nature of the world economy can emerge.
For example, the two largest associations of our continent - the European Union and the emerging Eurasian Union - based their interaction on the rules of free trade and compatibility of regulatory systems, objectively, including through relations with third countries and regional structures, are able to extend these principles to the whole space - from the Atlantic to the Pacific. On the space that will be harmonious in its economic nature, but polycentric in terms of specific mechanisms and management decisions. Then it will be logical to start a constructive dialogue about the principles of interaction with the states of the Asia-Pacific Region, North America and other regions.
In this regard, I note that the Customs Union of Russia, Belarus and Kazakhstan has already started negotiations on the creation of a free trade zone with the European Free Trade Association. The agenda of the APEC forum, which will be held in Vladivostok in a year, will occupy an important place in the themes of trade liberalization and the removal of barriers to economic cooperation. Moreover, Russia will promote a common, coordinated position of all participants in the Customs Union and the SES.
Thus, our integration project reaches a qualitatively new level, opens up broad prospects for economic development, and creates additional competitive advantages. Such a combination of efforts will allow us not only to fit into the global economy and trade system, but also to actually participate in the process of developing solutions that set the rules of the game and determine the contours of the future.
I am convinced that the creation of the Eurasian Union, effective integration is the path that will allow its participants to take a worthy place in the complex world of the 21st century. Only together can our countries be among the leaders of global growth and civilizational progress, to achieve success and prosperity.
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