Deputy Minister for economic development of the Russian Federation ALEXEY LIKHACHEV

1. The establishment of the Common economic space of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation and its implications for Russia’s global integration, including WTO accession THE MINISTRY FOR ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Deputy Minister for economic development of the Russian Federation ALEXEY LIKHACHEV Washington, D.C. - May 23, 2011

2. The main goals of the Customs Union Formation of the Common Customs Tariff and the system of non-tariff regulation Transfer of customs control to the external borders Launching the common Customs code Creation of the framework ofenrollmentandallotmentof customs duties, taxes and fees Formation of the common trade regulations with the third countries

3. Common tariff territory (stages) 01.07.2010 01.07.2011 01.01.2010 Launching thecommon customs tariff and non-tariff regulation Launching theCustoms code of the Customs Union Transfer of customs control to the external borders of Belarus Launching the framework ofenrollmentandallotmentof import customs duties Abolishmentof customs clearance procedure of the goods inthe mutual trade within Belarus, Kazakhstan and Russia Transfer of customs control to the external bordersof Kazakhstan Launching theCommon economic space

4. Common Customs Tariff For Russia For Belorussia For Kazakhstan • Increased: • mutton, horsemeat, goat meat • ready-made canned meat • yeast • individual items and clothing accessories Decreased: • exotic fruit juice concentrates • food for baby feeding • materials for photographic purposes • wool and fabric • pharmaceutical substances • parts for shoes • electric equipment • Increased: • transport group (including cars) • wood • refrigeration equipment • pharmaceuticals • household appliances • clothing and footwear Decreased: • certain types of agricultural products • skins • optical, medical instruments and devices • Increased: • individual meat items • ready-made canned meat • individual metal items • passenger cars Decreased: • clothing • carpets • leather and textile footwear • electrical machinery and equipment • pharmaceutical substances

5. Supranational institutions The highest authority of the Customs Union at the level of heads of state and heads of government Determination of strategy and the main directions of development of the Customs Union (solutions - consensus) Court of the EEC* Dispute resolution Distribution of votes Commission of the Customs Union deputy heads of government Secretariat of the Commission of the Customs Union Russia – 57% Kazakhstan – 21,5% Belarus – 21,5% Regulating authority of the Customs Union (solutions - 2/3 majority or consensus) Organizing the activities of the Commission State executive authorities Execution of decisions *Eurasian Economic Community

6. Common economic space of Belarus, Kazakhstan and Russia Implementation of "four freedoms“ (free movement of goods, services, capital and labour force) Harmonization and unification of the standards of economic regulation in the key areas (competition, subsidies, public procurement, technical regulation, natural monopolies, intellectual property, etc.) Formation of integrated markets Coordinatedmacroeconomic and currency policies

7. 4%of worldGDP (PPP) 20 million km2 (15%of the earth surface) 170 million population 25% of world proved reserves of natural gas 13% of world exports of energy resources 11% of world exports of raw materials 9% of world proved reserves of oil CES 80% of foreign trade turnover of CIS* countries 70% of mutual tradevolume of CIS countries 80% of GDP of CIS countries *Commonwealth of Independent States

8. CES agreements Technical regulation Macroeconomy Currency policy Trade in services + investments Natural monopolies Financial markets Industrial subsidies Free movement of capital Public procurement Agricultural subsidies Competition Intellectual property Common economy policy Common market of CES Free movement of goods and services Free movement of labour force Energy, transport Status of migrant workers Markets of oil, oil products Illegal migration Gas transportation Railway transport Electric energy

9. Key CES provisions November 18, 2010 • common list of products in respect of which • common technical regulations of the Customs Union • are adopted August-September 2011 • simplified procedure for residence and labour activity • coordinated policy against illegal migration August-September 2011 • grants in accordance with WTO rules August-September 2011 • state aid not exceeding 10% of agricultural • production

10. Key CES provisions August-September 2011 • national treatment and MFN • favourable conditions for expansion of mutual trade in • services and investment activities 2012-2013 • common principles and rules • protection against unfair competition • prohibition on abuse of dominance • national treatment in the field of conservation and • protection of intellectual property rights • common international legislation (obligatory international • treaties: the Singapore Treaty in 2006, the Rome • Convention 1961) January 1, 2012 January 1, 2013 • budget deficit not exceeding 3% of GDP • public debt not exceeding 50% of GDP • inflation not more than 5 percent points above • inflation in the CES country with the lowest price growth

11. Key CES provisions January 1, 2013 • unified tariff for the transportation of goods by different • types of communication: export, import and domestic • harmonization of legislation in accordance with • international standards in: • the banking field; • the foreign exchange market; • the equity market; • the field of insurance. December 31, 2013 • equal access to procurement in electronic format July 1, 2014

12. New Zealand Common Economic Space European Free Trade Association Commonwealth of Independent States (Free trade area)