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Decisions of the EEC Council stimulate the development of national economies of the EAEU States

Decisions of the EEC Council stimulate the development of national economies of the EAEU States

3/17/2017

On March 17, Moscow hosted a session of the Council of the Eurasian Economic Commission (EEC). The decisions to ensure consumer safety and efficiency of Phytosanitary control in the States of the Eurasian Economic Union (EAEU) were adopted.

The Chairman of the EEC Council, the Vice Prime Minister of the Kyrgyz Republic Oleg Pankratov, drew attention to the importance of the decisions adopted by the Council. “In the modern world, rules and regulations of technical regulation shall ensure safety of products for consumers, improve production efficiency and reduce costs for business,” said Oleg Pankratov. “It is important for us to develop uniform approaches common for the States of the Union for determination of the conformity of goods and services to the standards of the EAEU.”

The EEC Council has approved the following:
  • Zeroing of import duties on ether alcohols and their derivatives, widely used in footwear production. According to the estimates of the Russian Tanning and Shoemakers Union, this measure should allow reducing the expenses of the industry enterprises by 735.3 thousand US dollars per year and increase the profitability of production by 13% as compared to the current level (from 2.8% till 3.16% ).
  • Inclusion of a number of new provisions aimed, among other things, at ensuring safety of products that have magnets, into technical regulations of the Eurasian Economic Union “On the safety of toys”. In particular, sale and distribution of toys with high-intensity loose small size magnets are prohibited. This will allow reducing the threat to health of children, as it will eliminate the possibility of swallowing them.
  • Elimination of a number of duplicative norms in the sphere of quarantine phytosanitary control at import of products subject to quarantine into the EAEU and their moving between the Member States. This decision will assist to removal of the unreasonable administrative barriers to trade and reduce conflict situations at phytosanitary quarantine control.
  • Introduction of amendments to the Technical Regulations “On the safety of explosives and products on their basis”. The commencement date for the norm providing for marking of explosives was postponed till January 1, 2021. The Regulations establish legal grounds for circulation of explosives used in the coal, oil, gas and a number of other industries in the EAEU States.

Article 4, Paragraph 1, of the Technical Regulations provides for marking substances with the country code of the country of producer, type of product, manufacturer, produced lot and date to be included into the explosives.

Concerning the decision on zeroing of import duties on ether alcohols and their derivatives, member of the Board (Minister) for Trade of the EEC Veronika Nikishina noted that this measure will be valid until February 28, 2019 inclusive. “The introduction of a zero rate on the import of the specified chemical products will assist the manufacturers of leather, leather products and footwear, whose costs for purchase of chemistry increased by 2.5 times due to increase in currency exchange rates,” said Veronika Nikishina. “Thus, zeroing of import duties should allow enterprises to reduce costs and offer more competitive prices at the domestic and foreign markets.”

Within the framework of the EEC Council, the Republic of Kazakhstan and the Kyrgyz Republic signed documents on the provision of technical and financial assistance to Kyrgyzstan in the process of adaptation of the country’s economy related to its membership in the Eurasian Economic Union. “We hope that assistance from the EAEU States will allow us to take advantage of all the benefits of integration as soon as possible, to increase participation of the Republic’s enterprises in mutual trade and improve the living standards of the country,” the Vice Prime Minister of the Kyrgyz Republic Oleg Pankratov noted. “I am glad that the agreements that have been reached at the level of the Presidents were embodied in the agreements signed today.”

As the Vice Prime Minister of Kyrgyzstan said, the Republic has done a great job in order to create conditions that guarantee the quality and safety of goods supplied to the States of the Union. “Funds from Kazakhstan will be directed to the modernization and development of necessary infrastructure, in particular, Veterinary and Phytosanitary laboratories,” Oleg Pankratov said.

Kazakhstan will increase the financial support from 7 to 41 million dollars. The funds will be spent on infrastructure development, including construction, modernization and upgrading of the checkpoints and laboratories in the Kyrgyz Republic.

The process of interaction between the two countries will also be simplified. The countries have agreed upon the authorized authorities that will determine the conditions and formats for assistance provision, i.e. the Ministry of Economy of Kyrgyzstan and the Ministry of Finance of Kazakhstan.