Eurasian Eco­nomic Union: Cu­mu­la­tive Ef­fect

A new in­te­gra­tion as­so­ci­a­tion, the Eurasian Eco­nomic Union, will soon be launched in the post-Soviet space

Economy of Belarus - - INTEGRATION -

The Eurasian Eco­nomic Union (EEU) Treaty was signed in As­tana on 29 May 2014 and will take ef­fect in 2015. The EEU will ini­tially in­clude Rus­sia, Kaza­khstan, Be­larus and Ar­me­nia. Soon the eco­nomic union of four will wel­come Kyr­gyzs­tan. Ta­jik­istan is con­sid­er­ing the pos­si­bil­ity of join­ing the or­ga­ni­za­tion. Ac­cord­ing to ex­perts, the Eurasian Eco­nomic Union will be the world’s sixth big­gest econ­omy with the ag­gre­gate GDP of almost $3 tril­lion. The union is ex­pected to gen­er­ate another $1 tril­lion as a re­sult of in­te­gra­tion by 2030. A 170-mil­lion-strong mar­ket with a free move­ment of goods, ser­vices, cap­i­tal and work­force prom­ises great prospects for business and in­vestors.

Back­story

The his­tory of eco­nomic in­te­gra­tion in the Eurasian re­gion is more than 20 years old. In fact it be­gan im­me­di­ately after the col­lapse of the Soviet Union as the na­tional economies of the new states were closely in­ter­con­nected. There­fore, soon after the es­tab­lish­ment of the CIS in De­cem­ber 1991, the states that were ready for closer eco­nomic part­ner­ship con­tin­ued the search for new forms of in­te­gra­tion.

In Oc­to­ber 2000 Be­larus, Kaza­khstan, Kyr­gyzs­tan, Rus­sia and Ta­jik­istan in­sti­tuted the Eurasian Eco­nomic Com­mu­nity (EurAsEC) with a view to strength­en­ing co­op­er­a­tion, de­vel­op­ing the in­te­gra­tion and bol­ster­ing ties in var­i­ous fields. This as­so­ci­a­tion be­came op­er­a­tional in 2001. But al­ready in Oc­to­ber 2007 the Eurasian troika – Be­larus, Kaza­khstan and Rus­sia – took another step to­wards closer in­te­gra­tion and signed the treaty to es­tab­lish a common cus­toms ter­ri­tory and the Cus­toms Union which came into full be­ing on 1 July 2011. In Novem­ber 2011 the pres­i­dents of the three states signed the

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