Single Economic Space becomes operational 1 January 2012

For the full functioning of the Single Economic Space, the member states have created the international treaty framework. The three countries have ratified 17 key treaties that make up the legal framework of the SES. Thus, all the necessary documents have been formally adopted to ensure the full functioning of the SES. The most important agreements for Belarus are the documents relating to the removal of barriers in the supply of oil and oil products, gas, electricity. The SES member states have also adopted the agreements on macroeconomic policy, common principles and rules of competition, industrial subsidies, and monetary policy. The rules for public procurement in the Single Economic Space will be uniform as from 1 January 2012.

According to BelTA, the agreements set out the main approaches, principles, terms and requirements. The agreements create a framework to ensure equal conditions for economic entities of the three countries on the single commodity market, allow removing existing barriers and constraints in promoting products. Thus, additional opportunities open up for economic growth in Belarus, Kazakhstan and Russia.

Prior to the launch of the Single Economic Space, the three countries signed the Declaration of the Eurasian Economic Integration. In accordance with the Declaration, the SES is based on the principles of respect for the universally recognized norms of international law, including respect for the sovereignty and equality of states, fundamental human rights and freedoms, the rule of law and market economy. In their practical cooperation the countries will be guided by the rules of the World Trade Organization. The document takes into account Belarus' proposal on possible creation of joint transnational corporations to expand industrial cooperation. The Declaration also includes Belarus' initiative to further strengthen comprehensive mutually beneficial and equal cooperation of the Customs Union and the SES with other countries, international integration organizations, including the European Union, with the prospect of establishing a common economic space.

The sides have founded the Eurasian Economic Commission to secure the smooth operation and further development of the Customs Union and the Single Economic Space. The Commission will represent the interests of the whole alliance. The Presidents of the three countries signed the relevant agreement on 18 November. The Commission will replace the Commission of the Customs Union and will serve as the supranational authority, the first one in the post-Soviet space. Its powers will be gradually expanded.

The Commission will follow the principles of mutual benefit, equality and observation of national interests of the parties to the agreement, economic feasibility of decisions, openness, transparency and objectivity. The document envisages a two-tier body, i.e. the Council of the Commission and the Board of the Commission with separate functions and authorities. Such a system will create the necessary conditions to protect Belarus' national interests as sensitive issues can be submitted for consideration to higher authorities, up to the Supreme Eurasian Economic Council at the level of heads of state where decisions are taken by consensus. The Belarusian Parliament has ratified the Treaty on the Eurasian Economic Commission.

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