Customs Union Agreed with Belarus, Kazakhstan.

 

Moscow – President Dmitry Medvedev met with his counterparts Alexander Lukashenko and Nursultan Nazarbayev in Minsk on Friday, where they agreed to the creation of a unified customs tariff, which will start Jan.1, as well as a unified customs code, which will go into effect on July 1.

About 92 percent of the new tariff regime is based on current Russian duties, First Deputy Prime minister Igor Shuvalov said.

And, as Russia has, on average, the highest tariffs of the group, that means that Kazakhstan and Belarus will be raising duties on a wide swathe of items.

“We had to agree with our partners on lowering certain customs tariffs on certain groups of goods, and our partners had to raise certain tariffs,” Shuvalov said, adding that Kazakhstan had to raise tariffs on more than 5,000 items.

“This is a difficult process… It was necessary to make compromises in order to ensure all the decisions could go into effect starting Jan.1”, he said.

But with Russia as the largest external market for both Belarus and Kazakhstan, raising tariffs remains a lucrative bet for both countries.

“The creation of the customs union of Belarus, Russia and Kazakhstan will allow the three countries to raise their gross domestic product 15 percent by 2015,” Nazarbayev said. “A common market with GDP of $2 trillion will be attractive for investors.”

Nevertheless, there are still several sore points remaining in the formation of a unified customs tariff, said Alexander Portansky, head of the information office for Russia’s WTO bid.

“These sore points will affect the economies of each of the three countries – for example, the customs duties on cars in Belarus, which are lower than those in Russia,” Portansky said.

The countries still haven’t agreed to a set of automobile tariffs, but the Russian side is concerned that the tentative plan for duties would lead to a flood of used cars from Belarus and Kazakhstan and crush the domestic auto market.

While tariffs for Belorussian dealers would jump to the same level as the Russian tariffs, duties for individuals would remain several times lower, which could result in caravans of Belorussian auto runners streaming into Russia.

A number of decisions regarding the customs union don’t correspond to the interests of Belarus in full, Lukashenko said, adding that he hoped that the decisions would nevertheless bring a balance of interests and “common results for all sides.”

Medvedev repeated his assertion that entering the customs union would not affect Russia’s plans to join the WTO.

“There are two options: either enter the WTO with the customs union, which no longer exists only on paper, or each country can enter with the agreed-upon positions, but separately,” he said, adding that both options were acceptable.

But experts say the new customs union could create an entirely new set of hurdles for Russia’s accession to the WTO.

 

Tasks:

I. Insert the prepositions where it is necessary:

1) President Dmitry Medvedev met … his counterparts Alexander Lukashenko and Nursultan Nazarbayev … Minsk … Friday, where they agreed … the creation … a unified customs tariff.

2) Russia has, … average, the highest tariffs … the group, that means that Kazakhstan and Belarus will be raising duties … a wide swathe … items.

3) It was necessary to make compromises … order … ensure all the decisions could go … effect.

4) The Russian side is concerned that the tentative plan …. duties would lead …. a flood … used cars … Belarus and Kazakhstan.

5) A number … decisions regarding the customs union don’t correspond … the interests … Belarus … full, Lukashenko said.

 

II. Match the words in column a) with their synonyms in column b):

a) counterpart; to be based on; to raise; swathe; in order to; to ensure; lucrative; sore; concerned with; dealers; assertion; option; acceptable; hurdle; accession

b) admission; profitable; to be grounded on; barrier; difficult to solve; range; with the purpose of; pleasing; businessmen; to guarantee; worried about; claim; alternative; colleague; to increase

 

III. Match the word combinations with their English equivalents from the text:

Единый таможенный тариф; ныне существующий тарифный режим; повышать пошлины; ряд товаров; добиться компромисса; вступать в силу; выгодная сделка; внутренний валовый продукт; общий рынок; точки разногласия; предполагаемый план; внутренний рынок; в отношении чего-то; отвечать интересам; существовать на бумаге; совершенно новый ряд барьеров; вступление в ВТО

 

IV. Translate the sentences from Russian into English:

1) Мы вынуждены были уступить нашим партнерам и снизить некоторые таможенные тарифы на определенные группы товаров; в свою очередь наши партнеры повысят некоторые тарифы.

2) Так как Россия является самым крупным внешним рынком как для Белоруссии так и для Казахстана, повышение тарифов является прибыльным для обеих стран.

3) Тем не менее, в создании единого таможенного тарифа есть ряд пунктов, вызывающих разногласия.

4) В то время как тарифы для бизнесменов Белоруссии достигнут того же уровня, что и в России, пошлины, которые для физических лиц будут в несколько раз ниже – что может привести к тому, что потоки белорусских машин устремятся в Россию и обрушат внутренний рынок.

5) Существуют две возможности для выбора: либо вступить в ВТО всем таможенным союзом, который теперь существует де факто, либо каждая страна будет вступать в него отдельно, согласовав позицию с остальными членами Таможенного Союза.

 

 

Var. II