The Agreement On Economic And Trade Cooperation Between China And Eurasian Economic Union Came Into Effect

Key points: in October 25th, Premier Li Keqiang and member states of Eurasian Economic Union jointly issued the joint statement on the signing of the agreement on economic and trade cooperation between People's Republic of China and Eurasian Economic Union signed in May 17, 2018 on the 25 day. The agreement covers 13 chapters, including customs cooperation and trade facilitation, intellectual property rights, sector cooperation and government procurement, including new topics such as e-commerce and competition.

On October 25, 2019, Premier Li Keqiang and Premier of the member states of the Eurasian Economic Union jointly issued the joint statement on the signing of the agreement on economic and trade cooperation between People's Republic of China and Eurasian Economic Union signed in May 17, 2018. The agreement on economic and trade cooperation between China and Eurasian Economic Union came into effect on 25, 25.

The joint statement said that the entry into force of the agreement is an important measure to build a common economic development space, to realize the "one way along" initiative and the Eurasian Economic Alliance, and the coordinated development of the "one belt road initiative" and the Eurasian partnership initiative. It believes that the agreement will help mutually beneficial cooperation and constructive dialogue between the two sides in the economic and trade field. It is necessary to successfully launch the implementation of the provisions of the agreement aimed at promoting bilateral trade and cooperation as soon as possible, and to ensure the proper role of the cooperation mechanism, including the Joint Committee of the agreement.

The Eurasian Economic Union was founded in 2015. Currently, Russia, Kazakhstan, Belarus, Kyrgyzstan and Armenia are all important partners in the "one belt and one way" development.

In May 8, 2015, during his visit to Russia, Xi Jinping signed a joint statement with Russian President Putin on the docking and cooperation of the Silk Road Economic Belt Construction and the Eurasian Economic Union, and announced the launching of the agreement negotiations between China and the Federation on economic and trade cooperation. Since the first round of negotiations in October 2016, the two sides successfully concluded negotiations in October 1, 2017 through five rounds of negotiations, three working group meetings and two ministerial consultations. In May 17, 2018, China signed an agreement on economic and trade cooperation with Eurasian Economic Union.

This is the first time that China and the Eurasian Economic Union have reached an important institutional arrangement in terms of economic and trade, marking the new stage of economic and trade cooperation between China and the alliance and its member countries from the project driven to the system leading. It has a milestone in promoting the docking and cooperation between the "one belt and one road" construction and the Eurasian Economic Alliance.

The agreement covers 13 chapters, including customs cooperation and trade facilitation, intellectual property rights, sector cooperation and government procurement, including new topics such as e-commerce and competition. The two sides agreed to further simplify customs clearance procedures and reduce the cost of goods trade by strengthening cooperation, exchanging information and exchanging experience.

The summit of the Ministry of Commerce spokesman said that the agreement has three main characteristics: first, strengthening the docking of policies and rules, laying a solid foundation for the two sides to enhance the level of economic and trade cooperation; two, the two sides have reached a consensus in the areas of customs, quality inspection and technical standards, which will effectively enhance the level of trade facilitation in the region and enhance the transparency and the anticipation of trade. Three, the agreement contains new topics such as intellectual property rights, government procurement, e-commerce and so on, and has opened up broader economic and trade cooperation areas and space for both sides.

It must be clear that the agreement on economic and trade cooperation is a non preferential agreement and will not play a role in reducing or eliminating tariffs. Although it does not involve the most critical and sensitive tax rates, it still has positive significance for promoting trade facilitation. Tigran Sargsyan, chairman of the Executive Committee of the Eurasian Economic Commission, said: "the signing of the agreement is an important step for strengthening economic and trade exchanges between the Eurasian Economic Union and China. It provides a legal framework for the two sides to carry out economic and trade docking and cooperation, and provides more convenient conditions for the partners."

In short, the aim of the agreement is to provide institutional safeguards for bilateral economic and trade cooperation. We should further reduce non-tariff barriers to trade, enhance trade facilitation level, create a favorable environment for industrial development, and promote the further development of China's economic and trade relations with the alliance and its member countries, so as to bring benefits to enterprises and people of both sides.

The Ministry of Commerce said that the docking of the Eurasian Economic Alliance and the "one belt and one way" construction has enabled Chinese enterprises to further develop the export potential of the alliance. The development potential of logistics, warehousing and related services of Eurasian Economic Union and the EU border is huge, and will also facilitate the export of Chinese enterprises to the EU to a certain extent. China's export products will be further based on the Eurasian Economic Union's Member States and the market of the European Union and other CIS countries.