From the name “customs union” itself, it follows that it represents an agreement between a number of states. Only countries have customs and the right to enter into any agreements.
The emergence of customs unions
As early as the beginning of the 19th century, in 1815, the first economic agreement was concluded and it was called the German Customs Union, whose technical regulations provided for the creation of duty-free trade with Prussia. The benefits of the common economic space were noted back then. However, the South African Customs Union is considered the oldest such association.
Technical regulations have been developed for a very long time. It was formed in 1889, and the first agreement was signed only in 1910. Over time, some states around the world have entered into similar alliances among themselves, the foundation of which is a
protectionist policy, or the protection of the emerging market from third countries.
The main provisions, the international code and technical regulations of the customs union were developed. Taking into account two hundred years of experience, all these indicators are constantly being improved in order to create the attractiveness of the union, and the number of benefits for subjects is increasing.
Benefits of this kind of agreement
The removal of borders, the creation of a single domestic market, the abolition of customs duties and expenses - all this affects the cost of goods transported.
The name of this union used to say nothing to most people. That was until 2006, when they first talked about creating a Customs Union between Belarus, Kazakhstan and Russia, which was supposed to be revived on the basis of the Eurasian Economic Community - the Eurasian Economic Union (this abbreviation is deciphered). At the same time, a single customs code and a single tariff were approved for all transported goods. This association has a lot of ill-wishers and critics. But one cannot deny the fact that in 2012 the treasury of Kazakhstan doubled.
According to S. Glazyev, who was then the executive secretary of the CU Commission (regulatory and permanent body), for the first half of the existence of this economic community, the capitals of its countries increased by a third, and trade in border regions - by 40%. The benefits are obvious.
Purpose of technical regulations
There were many difficulties on the way to creating this organization, as evidenced by the time elapsed from the decision to establish the union in 2006 before the Customs Union arose in 2010. Technical regulations have been very carefully designed to prevent any discriminatory policies against any of the participating countries. Initially, the Union approved 27 technical regulations with the following breakdown of adoption: in 2012 - 8, in 2013 - 12, in 2014 - 5, in 2015 - another 2. Today, their number has increased and is equal to 31. Many are in development. Separately, it is agreed that enterprises that have previously entered into some contracts will finalize under the established conditions until the moment when the previous agreement ceases to function. To simplify
technical regulation (within the legal framework), a single list of products is introduced in the Union. When any regulation of the Customs Union comes into force, the previously existing state national supervision ceases to be in force.
Goals and objectives of the Customs Union
The Interstate Council, which includes the presidents and prime ministers of the three countries, is the highest governing body of this international organization.
The Customs Union, the technical regulations of which include absolutely the entire legal framework and the customs code, was created primarily to ensure the growth of GDP (gross domestic product) of the participating countries. And this growth is really happening, as evidenced by the number of countries willing to join the union. This is Armenia, Tajikistan, Moldova. Negotiations are underway with New Zealand, Israel, Syria, Vietnam and India. They are also conducted with Iceland, Luxembourg and Switzerland - countries united in an organization called EFTA. The Customs Union has a territory of preferential trade with many countries around the world.
Under the Customs Union there are authorized bodies of the Parties. Their functions include the development of technical regulations, as well as supervision of compliance with the requirements of these regulations, control over the implementation of planned activities for the implementation of tasks.