Commonwealth of Independent States Treaty on Free Trade Area

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Treaty on Free Trade Area
(Russian: Договор о зоне свободной торговли)
CISFTA (orthographic projection).svg
Languages Russian language only (Article 25), dispute-settlement only in the Russian language (Article 44 of Annex 4) [1]
Type Free-trade area
Member states
Establishment
 Free trade agreement signed
18 October 2011
 Free Trade Area established
20 September 2012
The Treaty on Free Trade Area dated 18 October 2011. The information from the depository of the international agreement published on the Unified Register of Legal Acts and Other Documents of the Commonwealth of Independent States (under the executive committee of the Commonwealth of Independent States) as of 2024. Treaty on Free Trade Area dated 18 October 2011 - information from the depository.png
The Treaty on Free Trade Area dated 18 October 2011. The information from the depository of the international agreement published on the Unified Register of Legal Acts and Other Documents of the Commonwealth of Independent States (under the executive committee of the Commonwealth of Independent States) as of 2024.
The Rules of origin dated 20 November 2009. The information from the depository of the international agreement published on the Unified Register of Legal Acts and Other Documents of the Commonwealth of Independent States (under the executive committee of the Commonwealth of Independent States) as of 2024. CIS Rules of origin dated 20 November 2009 - information from the depository.png
The Rules of origin dated 20 November 2009. The information from the depository of the international agreement published on the Unified Register of Legal Acts and Other Documents of the Commonwealth of Independent States (under the executive committee of the Commonwealth of Independent States) as of 2024.

Treaty on Free Trade Area [4] [5] [6] [7] is an international treaty on a free trade regime in goods signed by eight post-Soviet states on 18 October 2011, at a meeting of the Commonwealth of Independent States (CIS) Council of Heads of Government in St. Petersburg and entered into force on 20 September 2012. [8] It creates Free Trade Area among Russia, Ukraine, Belarus, Moldova, Armenia, Kyrgyzstan, Kazakhstan and Tajikistan. This treaty and other agreements within the Commonwealth of Independent States do not regulate relations with third countries, the terms of the CIS FTA allow member states to enter into the FTA agreements with other countries, as well as to join/create custom unions. [9]

Contents

The treaty is de jure open for accession even for those countries that are not participants of the CIS (Article 24). [10] For each country, upon entry into force, the rules of origin adopted on 20 November 2009 will apply to mutual trade (Article 4), while the 1994 free trade agreement and the 1999 protocol will cease to be in effect among ratifiers (Annex 5). [11] In accordance with the rules of origin, the goods must be provided with a preferential certificate CT-1 or a declaration of origin (if no irregularity is suspected) in order to be admitted to markets without tariffs. [12] [13]

Uzbekistan has not signed and is not a party to this treaty. In 2013, the protocol on the application of the CIS FTA between Uzbekistan and eight states was signed. [14] It entered into force in 2014. [15] Article 2 of the Protocol gives Uzbekistan the right not to apply the rules of origin of goods of 2009, instead of which Uzbekistan applies the rules of origin of goods adopted on 24 September 1993. [16] [17] Uzbekistan has announced the future application of the new rules of origin, [18] but as of 2024 it has not yet acceded. [19] The members of the Eurasian Economic Union use a grandfather clause (Article 102 of the Treaty on the Eurasian Economic Union) in order to apply the CIS FTA Treaty and the other agreements (both 1993 and 2009 rules of origin [20] ) with third countries concluded before 1 January 2015 but they do not have the national competence to independently conclude new free trade in goods agreements after 2015. [21]

History

Regional Trade Agreements Database of the World Trade Organization. Treaty on a Free Trade Area between members of the Commonwealth of Independent States (CIS) 18-Oct-2011.png
Regional Trade Agreements Database of the World Trade Organization.

The Commonwealth of Independent States Free Trade Zone Agreement, proposed since the breakup of the Soviet Union in 1991, was signed on 18 October 2011 by Russia, Ukraine, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Moldova and Armenia.[ citation needed ] The agreement replaces existing bilateral and multilateral free trade agreements among the countries. Initially, the treaty was only ratified by Russia, Belarus, and Ukraine, [23] [24] however by the end of 2012, Kazakhstan, Armenia, and Moldova had also completed ratification. [25] [26] In December 2013, Uzbekistan signed and then ratified the treaty, [27] [28] while the remaining two signatories, Kyrgyzstan and Tajikistan, later both ratified the treaty in January 2014 and December 2015 respectively. [29] [30] Azerbaijan is the only full CIS member state not to participate in the free trade area.

European Union–Ukraine trade agreement controversy

From 1 January 2016, Ukraine and the European Union started provisionally applying a Deep and Comprehensive Free Trade Agreement. Member states of the Eurasian Economic Union (EEU or EAEU) held consultations on 22 December 2015 to discuss the implications of the agreement concerning the possible duty-free transit of EU goods into the EEU via Ukraine. The states agreed to implement a provisional scheme later in 2016 that would impose customs checks on goods entering the EEU from Ukraine; and long term, to establish a common information system to control all imports into the EEU's customs area. [31] Nonetheless, Russia promulgated a decree in mid-December 2015 suspending its CIS Free Trade Agreement with respect to Ukraine from 1 January 2016. [32] In late December, the Ukrainian Government responded by passing trade restrictions on Russia, with effect from 2 January 2016. [33] Agreements between Ukraine and other EEU states within the free trade area remain in effect.

On 1 November 2022, Verkhovna Rada MP Roksolana Pidlasa made a draft bill to denounce the proposed to Treaty on the Free Trade Area (CIS) dated 18 October 2011. After meeting with Prime Minister Denys Shmyhal, she said, "It is time to decolonize our trade. We have bilateral free trade agreements with all CIS member countries, the GUAM Free Trade Agreement, and we also apply the Pan-Euro-Med regional convention with Georgia and Moldova. There are many tools that work for Ukrainian manufacturers. There is no need to participate in a treaty where Russia imposes its rules and uses the right of force." [34] Pidlasa reminded and noted that "in addition to Russia, whose trade is embargoed, Belarus, Armenia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Turkmenistan are also parties to the agreement, and Uzbekistan applies the agreement on separately defined terms." [35]

Signature and ratification

A clickable Euler diagram showing the relationships among various supranational organisations in the territory of the former Soviet Unionv * d * e Supranational PostSoviet Bodies-en.svg
A clickable Euler diagram showing the relationships among various supranational organisations in the territory of the former Soviet Union vde

An overview of signatures and ratifications is shown below:

StateSignatureEntry into Force [36] Comment
Flag of Armenia.svg  Armenia [37] 18 October 201117 October 2012EAEU member
Flag of Belarus.svg  Belarus 18 October 201120 September 2012EAEU member
Flag of Kazakhstan.svg  Kazakhstan 18 October 20118 December 2012EAEU member
Flag of Kyrgyzstan.svg  Kyrgyzstan 18 October 201113 December 2013EAEU member
Flag of Moldova.svg  Moldova 18 October 20119 December 2012EAEU observer
Flag of Russia.svg  Russia [note 1] 18 October 201120 September 2012EAEU member
Flag of Tajikistan.svg  Tajikistan 18 October 201119 March 2016
Flag of Ukraine.svg  Ukraine [note 2] 18 October 201120 September 2012Former CIS participant
Flag of Uzbekistan.svg  Uzbekistan 13 December 201312 January 2014EAEU observer

In 2013, the protocol on the application of the CIS FTA between Uzbekistan and the CIS FTA member states was signed as a bilateral document and without any reservations to the CIS FTA agreement. [38] It entered into force in 2014. [39]

See also

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References

Footnotes

  1. Suspended with regard to Ukraine from 2 January 2016
  2. Suspended with regard to Russia from 1 January 2016

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