TAIR MANSUROV,
Secretary General, Eurasian Economic Community

Today the Eurasian Economic Community (EAEC) is an incontestable leader among the regional integration groups in the post-Soviet space.

The Eurasian Economic Community, set up in October 2000, constitutes an absolutely new integrationist formation with a clear-cut and up-to-date development concept. Its member states pursue economic integration as the primary goal in their relations. Economic integration undergoes 3 stages: a free trade zone, followed by a customs union and finally an integrated economic zone.

So far EAEC has created a free trade zone ensuring unhampered trade among the member states. The goods manufactured within the borders of its member states are free of customs and duties.

The following indicators stand the testimony to the efficiency of integration. In 2001-2006 an average increase in gross domestic product (GDP) in member states was 46%, industrial and agricultural growth reached 39% and 24% respectively, transportation volumes rose by 38% and investment of capital surged by 89%. An average salary has grown by 4.8 times during this period.

The turnover among member states rose more than 2 times in 2001-2006 to reach more than USD 75 billion. In 2007, according to the preliminary projections, it should top USD 90 billion. National currencies exchange rates have stabilized. Inflation has decreased.

Several social development programmes are being implemented to significantly improve the quality of life for 206 million citizens of member states. In particular, the programme “Ten simple steps towards ordinary people” is being successfully implemented. Important decisions have been taken to facilitate communication among people, to provide access to education and medical treatment in all EAEC member states and to ensure visa-free trips among member states.

These achievements encouraged heads of member states to take a decision in August, 2006 on moving on to the next phase of integration, that is to set up a customs union and an integrated economic zone. Three states (Belarus, Kazakhstan and Russia) will be forming a customs union at the initial stage. The membership of Kyrgyzstan, Tajikistan and Uzbekistan will depend on their economic performance.

The EAEC Intergovernmental Council session in October 2007 saw the signing of fundamental documents on an integrated customs zone and union. In legal terms the customs union should be formed by 2010.

EAEC economic achievements attract other states. EAEC enlargement is under way. In 2006 Uzbekistan joined the organization as a full-fledged member ensuring the integration of the Organization for Central Asian Cooperation into EAEC.

One of the EAEC economic advantages is a beneficial geographical location of its member states serving as the bridge between Europe and Asia. In light of this fact, one of the current EAEC missions is to develop transportation routes between Western Europe and Eastern Asia. Their use should be more attractive both for the consignees and consignors than sea routes. Accomplishing this mission is economically beneficial for all states. Certain work has been already done. An Agreement on concerted policies for creating and developing transportation routes in EAEC has been signed. The plan of action to implement this Agreement has been adopted. Technical analysis of automobile and railroads, which are on the list of EAEC transportation routes, is under way, as well as the revision of the transport infrastructure and border checkpoints.

The member states are also developing energy cooperation, which gives way to the overall successful integration. Organizational, technological, institutional and legal measures are being taken to create the energy market, which would ensure simultaneous work of EAEC member states’ energy systems, reconstruction and reinforcement of transmission line interconnections and providing legal basis for energy cooperation.

EAEC member states are working on facilitating the process of declaring electrical energy at the customs when it is transmitted among member states.

Joint use of water resources is among EAEC priorities. It will undoubtedly contribute to EAEC energy, ecological and food security. 2008 will see independent international experts elaborating the concept of the efficient use of water and energy resources in Central Asia.

Eurasian Development Bank, created by Russia and Kazakhstan, plays an important role in implementing major investment projects in EAEC member states. Its authorized capital stock amounts to USD 1.5 billion. Its overriding mission is to promote economic growth as well as trade and economic ties among its member states through investment policies. Other EAEC members will soon become its stakeholders, which will result in wider opportunities for project implementation in the region. 

Today it can be stated that EAEC has gained international recognition. 62-nd United National General Assembly, which took place on December, 6 2007, saw the adoption of a special resolution “Cooperation between the United Nations Organization and Eurasian Economic Community”.

Speaking at the United Nations, I stated that sustainable economic development, environment, energy, water supply, developing science, technologies, transport infrastructure, transit potential, labour market and competitive private sector could be among the priority areas of this cooperation.

The UN resolution underlines the importance to strengthen the dialogue, cooperation and coordination between the UN and EAEC. According to the resolution, UN Secretary General should hold regular consultations with EAEC Secretary General. As to the UN specialized agencies, programmes, funds and international financial organizations, they should cooperate with EAEC to implement the programmes aimed at achieving the set goals.

It is the most recent example. In general, cooperating with international organizations is an important area of EAEC activities in accordance with the EAEC Concept on International Cooperation adopted in July, 2007 at the EAEC State Intergovernmental Council. It formulates main objectives and missions, principles and areas of cooperation for the EAEC member states to support EAEC international interests and sets forwards ways of achieving them.

EAEC is currently maintaining regular contacts with the United Nations Organization, its functional and regional agencies. Starting from 2003, when EAEC acquired the status of an observer at the UN General Assembly, its representatives make annual reports at the sessions of various UN commissions on the issues related to the EAEC development and cooperation with UN structures.

EAEC signed memoranda of understanding with the UN Development Programme (2006), UN European Economic Commission and UN Economic and Social Commission for Asia and the Pacific (2007) and the Black Sea Economic Cooperation (BSEC) Organization. A memorandum with the United Nations Industrial Development Organization (UNIDO) is expected to be signed soon.

It shall be noted that EAEC maintains regular contacts with OSCE and EU representatives on the issues of common interest. EAEC exchanges information with the World Customs Organization and keeps up relations with the International Monetary Fund, World Bank, European Bank of Reconstruction and Development and other organizations.

EAEC international activities promote its image abroad and contribute to solving economic and social problems in our states.

It can be claimed that EAEC has turned into an important institution of regional cooperation, stability and deeper economic cooperation.

Creating a legal basis for a customs union is the foremost achievement in 2007. It constitutes one more step towards creating an integrated economic zone, heralding the transition to an absolutely new integration stage. 

EAEC bodies will work exclusively towards establishing a customs union. Intergovernmental programmes on creating integrated transportation zone and energy market, on the efficient use of water and energy resources in Central Asia, peaceful use of nuclear energy, promoting science and technology development will be among EAEC priorities. Cooperation on social, humanitarian and migration policies issues will be continued in the future.

January 21, 2008

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