Customs Union

Topics: Russia, European Union, World Trade Organization Pages: 11 (3938 words) Published: April 20, 2013
I. Introduction
Thesis statement: The Customs Union for Russia, Kazakhstan, and Belarus is a purposeful union, which serves to meet several aims. II. Body
A. In the light of common aspiration to the WTO accession, it is worth of examining why preference of states was given to multilateral over preferential trade. B. The idea of the multilateral cooperation and creation of a common economic space, elimination of borders and regional integration is not new in the post-Soviet space. 1. “Putinomics” an attempt of Putin to bring back Soviet Union and Russian supremacy; 2. “Eurasian Union” similar to “ASEAN”;

C. In theory, customs unions are created to eliminate the trade barriers and decrease customs obligations between several states. 1. It requires confidence in partners and share of responsibilities; 2. single economic region;

D. There are many different assumptions why Customs Union was created. 1. supremacy of Russia over the territory of the former Soviet states; 2. a strategic step in the WTO accession;
3. reduction of Chinese influence and prevent massive imports of Chinese goods; 4. beneficial for entrepreneurs and domestic production enterprises; 5. fair competition;
6. effective legal protection against corrupt schemes and fraud mechanisms; E. Several other post-Soviet neighboring states were also invited to join the club. 1. The Ukraine;
2. Tajikistan;
3. Kyrgyzstan;
F. It is noteworthy of saying that pre-existing Customs Union trade relations and economic ties cannot be described as dynamic ones. 1. statistical numbers;
G. An interesting observation is that “with few exceptions, all the countries bordering the Western fringes of the former Soviet Union have intensified their trade relations with the European Union as well as with China, whose importance in Central Asian trade has been growing. 1. statistical data;

H. Official Astana firmly defended its position on the Customs Union accession, and denied any political motivations behind the membership of the alliance with Russia and Belarus. 1. a unified customs territory would make Kazakhstan even more attractive for foreign investors; 2. geopolitical position, as the largest land-locked country; 3. access to global markets;

4. expand trade with Russia and China;
5. diversity of economy through technological and service advances; I. Belarusian position toward the Customs Union brought many obstacles. 1. “arm-twisting” politics of the Kremlin;
2. Russian pressure;
J. At first it seemed that Russia benefited from creation of the Customs Union more than others, as it has the largest market and biggest production industries. 1. diversification of opinions;

K. What does the World Trade Organization is?
1. a network of agreements;
2. a single system, which regulates trade relations of members; 3. advantages and requirements;
L. The decision to create the Customs Union between three states could signal willingness to engage in deeper cooperation and integration, and thus, the WTO accession provides access to more states willing to cooperate and a platform for finding new “friends”. 1. advantages and disadvantages of being a member of WTO; M. Russia was the only Security Council and G8 member not on the WTO, thus its accession was a requirement to be fully admitted as one of the superpowers. 1. further policy of Russia toward Kazakhstan and Belarus; III. Conclusion

Creation of the Customs Union between Russia, Belarus and Kazakhstan caused a lot of debates about why these countries are forming the union, what are the benefits that they get and why exactly these states? First of all, I would like to define the meaning of “Customs Union”. According to Business Dictionary “Customs Union is an agreement between two or more (usually neighboring) countries to remove trade barriers, and reduce or...
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