Free Trade Zone of the
Commonwealth’s countries:
main stages of establishment
Foundation of the Commonwealth of Independent States (CIS) created a qualitatively new system of interstate relations between independent states in the sphere of foreign economic links. The development of foreign trade on the basis of bilateral intergovernmental agreements on free trade, signed in 1991-1993, featured the peculiarities of the system.
In 1994 the CIS countries took measures aimed at transition to multilateral regime of the free trade on the basis of a corresponding Agreement on establishment of a free trade zone. But the CIS countries failed to set up and agree on a multilateral list of exits from the free trade regime, stipulated by the Agreement. That is why the 1999 Protocol on entering amendments and supplements to the Agreement on establishment of a free trade zone stipulated, that the exits from the free trade zone regime, being of a temporal character, may be applied on the basis of bilateral documents.
The said Agreement and Protocol replace the existing bilateral free trade zone regime by a multilateral one. Now in foreign trade operations on customs territories of the countries - parties to the free trade zone agreement the unified rules will be applicable, which will create favorable conditions for free movement of commodities and services, for growth of mutual trade, development of mutually beneficial cooperative links. The prospect of establishment of the CIS common market becomes a reality.
A free trade zone is the first stage in building the CIS Economic Union. But in the process of its formation we will have to pass through several stages, interacting in the following directions. In particular in:
- elimination of obstacles for free movement of commodities and services (cancellation of customs fees, as well as equivalent taxes and fees, qualitative restrictions and other obstacles);
- establishment and development of an effective system of mutual accountancy and payments in trade and other kinds of operations;
- cooperation in the conduct of trade and economic policy for implementation of the Agreement on a free trade in the field of industry, agriculture, transport, finances, investments, social sphere, as well as in development of fair competition etc.;
- facilitating the intersectoral and intrasectoral cooperation and scientific and technical cooperation;
- harmonization and unification of legislation of the countries-parties to the Agreement to the extent which is necessary for a proper and effective functioning of the free trade zone.
Specification of measures on establishment of a free trade zone can be found in the Plan-Schedule of implementation of proposals on establishment and functioning of the free trade zone, adopted by the CIS Council of Heads of State on 21 June 2000 and in the Plan of measures for realization of the Program of actions for development of the Commonwealth of Independent States for the period up till 2005, adopted by the CIS Council of Heads of Government on 20 June 2000.
The first of the above documents specifies the priority measures for establishment of a free trade zone, which stipulate the implementation of internal state procedures regarding the entering into force of basic documents, regulating the functioning of the free trade zone; elaboration of concrete proposals, including the elaboration of additional interstate legal acts on functioning of the free trade zone; information support for establishment and functioning of the free trade zone.
The second document, which is of a middle-term character, stipulates:
- preparation and signing of a number of intergovernmental agreements and documents, which would facilitate creation of conditions for free movement of services, capitals, workers, insurance of their free transit, settlement of problems, relating to non-payments, effective functioning of transport corridors;
- establishment of specific important segments of the free trade zone - private business, multilateral production cooperation, investments;
- development of markets for specific kinds of products;
- joint participation in implementation of major economic projects;
- raising competition abilities of products etc.
It is necessary to take into consideration the fact, that the movement of each of the countries towards full-fledged free trade zone is not homogeneous due to existing differences in economic potentials, degree of reformation of economies, internal and external conditions for economic development. Therefore, alongside with the agreed directions of movement there will be a specific time-table of establishment of the free trade zone for each of the CIS countries.