Custom Union

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INTRODUCTION

Customs union is the form of economic integration which is in act today. Nowadays the integration and economic globalization is taking place in the world. Customs union is a trade agreement between the group of countries according to which there is a set of tariffs to the countries which is not in union while there is a free trade zone between the countries signed the agreement (ITAR-TASS, 2010).

In this project we will talk about the economic integration between three countries of former Soviet Union. The form of integration is customs union of Republic of Kazakhstan, Russian Federation and Republic of Belarus which was launched on January 1, 2010. But the agreement between three countries was signed much earlier on 6 October, 2007, Dushanbe (ITAR-TASS, 2010).

One of the members of this union is the Republic of Kazakhstan. Kazakhstan has different kinds of relations with Russia and Belarus from the time it became independent. Kazakhstan is situated in Central Asia and it is ranked as the ninth country in the world launching large territory. There are several reservoirs of mineral resources, oil, gas and coal. So, the country has trade relationships with many countries in the world (The Almaty expat cite, 2010).

Russia is one of the main export and import partners. The main product of both export and import is raw materials. Russia exports different kinds of food, textile and light industrial products and also there is an agreement between two countries about the rent of Kazakhstani space center Baykonur. Russia is a traditional buyer of Kazakh grain (approximately 98% of the total volume of Russia’s import of milling value grain) (Ministry of foreign affairs of the Republic of Kazakhstan, 2010).

Belarus imports ragged cotton fiber, flat-rolled hot-rolled and plated products of plain steel, zinc, drive belts made of vulcanized rubber, wheat from Kazakhstan. Belarus exports to Kazakhstan the following goods: special-purpose vehicles and heavy-duty trucks, farm machines, tractors, trailers and semi-trailers, bearings, sugar, plates, insulated wires, matches, plastic containers, rail, heaters, hot-air units, liquid pumps, electricity equipment for the ignition and starting of combustion engines, various consumer equipment, refrigerators, deep freezers and cooling equipment, furniture, medicines, lifting facilities (Ministry of foreign affairs of the Republic of Kazakhstan, 2010).

This paper starts with focusing on the studies done by other authors, in the paper I want to discuss the questions about how customs union was launched (brief background), its perspectives and future, problems which three countries faces due to the membership in it.

LITERATURE REWIEW

There are several studies focused on the customs union between Belarus, Kazakhstan and Russia. One of the most important studies on the Customs union is written by the voice of Russia. In their article the Voice of Russia takes an interview from Alexei Vlasov, head of the center on studying post Soviet area. According to Alexei Vlasov three post Soviet countries formed market with 180 million population. After all contradictions have been solved the Customs union officially came into a force. The next step is entering the World Trade Organization. And other perspective is joining of Kyrgyz Republic into the Customs union. According to Dmitry Astakhov Belarus at first hasn’t ratified the Customs code, but Belarussian President said that the country has ratified the document on July 3, 2011. Kazakhstan and Russia have signed the document in June of 2010. Also he says that Kyrgyzstan’s and Tajikistan’s presidents declared of the interest of their countries to enter the Union.

The voice of Russia writes that forming of the Cutoms union is great economic achievement on the Community of Independent States (CIS) territory. Three countries are planning to form a single economic space by 2012. By today...
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