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The EIC outcomes

The EIC outcomes

10/25/2019
Some important decisions were made in the spheres of trade cooperation, implementation of the Eurasian Economic Union (EAEU) digital agenda, interaction between the Union countries on cooperation in the jewelry and agricultural industry and a number of others during a meeting of the Eurasian Intergovernmental Council (EIC) held on October 25 in Moscow (Russian Federation).

The Heads of the EAEU Governments adopted a statement on the occasion of the entry into force of the Agreement on Trade and Economic Cooperation between the EAEU and the People’s Republic of China.

 Prime Ministers of the Member States, Chairman of the EEC Board Tigran Sargsyan and Prime Minister of the Republic of Serbia Ana Brnabic signed a
Free Trade Agreement between the EAEU and Serbia.

The Heads of the EAEU Governments signed International Agreements – an Agreement on the peculiarities of operations with precious metals and stones within the EAEU, an Agreement on measures aimed at unification of selecting and stock breeding of life-stock animals within the Union.

A number of decisions were made in the sphere of digitalization of the EAEU economies and the jewelry industry. In particular, the Procedure for interacting between competence centers of the EAEU Member States and the EEC within the framework of the Union digital agenda was approved. The Members of the Intergovernmental Council have approved an action plan for promoting jewelry products of the Member States to third markets.

The meeting of the Intergovernmental Council was attended by Nikol Pashinyan, Prime Minister of the Republic of Armenia, Sergey Rumas, Prime Minister of the Republic of Belarus, Askar Mamin, Prime Minister of the Republic of Kazakhstan, Mukhammedkaly Abylgaziev, Prime Minister of the Kyrgyz Republic, Dmitry Medvedev, Prime Minister of the Russian Federation, Tigran Sargsyan, Chairman of the EEC Board, as well as Ana Brnabic, Prime Minister of the Republic of Serbia, as a Guest of Honor.

Nikol Pashinyan, Chairman of the Eurasian Intergovernmental Council and Prime Minister of the Republic of Armenia, thanked Dmitry Medvedev for "organizing the meeting, hospitality and traditionally warm welcome". Then he gave high marks to the work carried out by the Eurasian Economic Commission: "During the four-year period of operation, the Board of the Eurasian Economic Commission has done a truly huge amount of work on practical implementation of the principles of free movement of goods, services, capital and labor. Tangible results were achieved in terms of creating and strengthening the institutions of the Eurasian Economic Union. We are proud to say that our organization has made a huge stride towards international recognition and securing its place and role in the world economic system with a diverse portfolio of cooperation".

 Nikol Pashinyan also stated the need to further improve the Union legal framework, eliminate exemptions and restrictions, coordinate policies in key sectors of the economy and ease the bureaucratic burden placed on business.

Having touched upon the decisions made by the Intergovernmental Council in the sphere of circulation of precious metals, stones and goods, the Prime Minister of Armenia noted: "Creating conditions for circulation of precious metals, stones and articles made therefrom in the Union internal market is among our important objectives as well. The signing of the relevant International Agreement will enable to form mutually beneficial trade and economic mechanisms aimed at creating competitive advantages of the Member States. The Agreement will remove current restrictions associated with the lack of mutual recognition of assay marks. From this perspective, the approval of the plan to promote jewelry products of the EAEU Member States to third markets, will, in turn, contribute towards the competitiveness and export growth and give a powerful impetus to developing our countries’ industry".

Tigran Sargsyan, Chairman of the EEC Board, drew attention to the fact that during the meeting of the Intergovernmental Council the Heads of the Union Governments made a statement on the entry into force of the Agreement on Trade and Economic Cooperation with the People's Republic of China. The same statement was issued by the PRC. "This is an important achievement of our Union, – Tigran Sargsyan emphasized, – due to the fact that we are creating a most favored nation regime for the Eurasian business, and this opens up new possibilities for deepening trade and economic interaction with China". According to him, within the framework of this Agreement, "new regimes are being created to promote and protect the interests of our business and to overcome various obstacles and restrictions that may arise in implementing trade transactions".

We are starting to launch new concepts for forming the Eurasian brands, – the Chairman of the EEC Board also said. - In particular, Nikol Vovaevich noted that today we had signed an Agreement on the peculiarities of operations with precious stones and metals". According to Tigran Sargsyan, this is the initial step on the road to form the Eurasian brand, and the Union countries have started with the jewelry industry because they have an enormous potential here", and joint efforts can help our jewelry enterprises to sell their products in third markets".

 "We have presented an activity report of the past four years. These four years have made it possible to identify current problems that need to be solved jointly within the framework of the Eurasian Economic Union", – Tigran Sargsyan, Chairman of the EEC Board, stressed.

An objective to abolish roaming in the EAEU territory has been set. An instruction was given to create a Working Group that would go into this issue and submit proposals.

Besides, as Tigran Sargsyan informed, the issue of how the new composition of the Commission's Board would be formed was discussed. The Intergovernmental Council instructed the EEC, Ministers of Foreign Affairs, Heads of Departments responsible for the Eurasian integration to develop common principles, including on the basis of rotation and change of ministerial portfolios within the EEC Board.

The Heads of the EAEU Governments adopted a statement on the occasion of the entry into force of the Agreement on Trade and Economic Cooperation between the EAEU and the PRC.It bears reminding that the Agreement was signed on May 17, 2018 in Astana (Republic of Kazakhstan).

The statement means that the entry into force of the Agreement is deemed to be an important step towards developing joint economic development space, interacting the EAEU and the “One Belt, One Road" initiative as well as the coordinated development initiatives of the Great Eurasian partnership and initiative of the People's Republic of China. The Agreement will contribute to developing mutually beneficial cooperation and constructive dialogue between the parties in the trade and economic sphere. The importance has been noted of early successful launch of the work on practical implementation of the Agreement aimed at developing mutual trade and cooperation as well as ensuring the proper functioning of cooperation institutions, including the Agreement Joint Commission.

  The Heads of the EAEU Governments countries signed the Agreement on the peculiarities of operations with precious metals and stones within the EAEU at the meeting of the Intergovernmental Council.The Agreement covers not only common rules for handling precious metals and stones, but also the issues of harmonizing legal regulation in the jewelry sector. The implementation of this document will ensure mutual recognition of assay marks for jewelry, which will be an important stage in forming the Union common market of precious metals and stones, ensure free circulation of jewelry in the Union and reduce transaction costs for business. Hence, another obstacle will be eliminated, which is contained in the "road map" for removing exemptions and restrictions on the EAEU internal market for 2018-2019.

  Expectation effects will be: increase of mutual trade, improvement of competitive conditions in the market and as a consequence – decrease in cost of jewelry for ultimate consumers. Indeed, all this can give a multiplier effect for the jewelry industry as a whole, because improvement in terms of mutual trade will contribute to increasing, for example, related services for refining and cutting precious stones and etc.

 Nowadays sanctions for violations in the sphere of jewelry differ in the Union countries, the system of state control in this sphere differs as well. The entry into force of the Agreement will enable participants of the Eurasian Economic Union jewelry market to fulfill the potential of mutual trade, enter new markets and get mutual benefits through cooperation.

 The Agreement will help to increase the transparency of the Union's internal jewelry market. The authorized authorities of the EAEU countries agreed on unifying some approaches to state supervision in order to control the authenticity of jewelry. The EEC expects a decrease in counterfeit goods in the jewelry market. The EAEU consumers can be assured in the quality of jewelry that will be sold in the Eurasian jewelry market.

 The Intergovernmental Council has approved an action plan to promote jewelry products of the Union Member States to third markers.

 The plan is divided into three units. The first unit deals with increasing the competitiveness of jewelry industry manufacturers and provides, primarily, for developing the concept of the Eurasian Jewelry Export Bureau. The concept will be presented in 2020. The issues of amendments to the Single Commodity Nomenclature of Foreign Economic Activity of the EAEU and the Common Customs Tariff of the EAEU will be considered within the same unit.

 The second unit is devoted to implementing some priority measures to support the jewelry export and includes such activities as monitoring the markets of the Union and third countries, preparation of proposals for promoting jewelry products using the EAEU joint trade infrastructure and participation in conferences and exhibitions. It is also envisaged to address the issue of creating additional mechanisms to stimulate brands of jewelry manufacturers.

The third unit complements the previous group of activities, offering to develop and create additional advancing mechanisms to third markets. This includes, amongst other things, addressing the issue of simplifying procedures for passing state control in producing and circulating jewelry made of precious metals and stones when sending them by international mail to natural persons.

 The specified activities will be implemented by the Commission together with the EAEU Governments.

The Intergovernmental Council of the EAEU has approved the Procedure for interacting between competence centers of the EAEU Member States and the EEC within the framework of the Union digital agenda. The participating country shall define and empower a competence center or several such centers in certain project areas or priorities of the Union digital agenda for implementing joint projects and digital transformation, forming new cooperation mechanisms as well as developing digital competencies.

The document presents common rules of interaction, basic functions of the Member States’ competence centres to cooperate in addressing the initiatives and project activities within the framework of the Union digital agenda.

Members of the Intergovernmental Council signed an Agreement on measures aimed at unification of selecting and stock breeding of life-stock animals within the EAEU.

 The Agreement will lay the groundwork for coordinated policy in the sphere of livestock breeding. The built-in mechanism will increase the genetic potential of animals, increase the production of competitive pedigree stock and mutual supplies as well as reduce dependence on its imports.

The Intergovernmental Council has adopted a decision on applying the concept of "a person authorised by the manufacturer". It will help to protect the EAEU single market from importing unsafe products through the uniform application of this concept by the Union States.

   Some conditions were determined under which a person authorized by the foreign manufacturer could act as an applicant for certification of mass-produced foreign products.

 Implementation of the decision made by the Intergovernmental Council will enable analyzing, at the stage of product conformity assessment, the powers and competencies of these authorized persons to carry out their actions on behalf of foreign manufacturers when releasing products into circulation in the Union as well as to establish liability for its safety.

 The next meeting of the Intergovernmental Council will be held on January 30-31, 2020 in Almaty (Kazakhstan).​