On signing the Agreement on the Functioning of the Customs Union within the framework of the Multilateral Trading system
Decree of the President of the Republic of Kazakhstan dated June 24, 2011 No. 103
In accordance with subparagraph 1) of Article 8 of the Law of the Republic of Kazakhstan dated May 30, 2005 "On International Treaties of the Republic of Kazakhstan"
I DECREE:
1. To approve the attached draft Agreement on the Functioning of the Customs Union within the framework of the Multilateral trading system.
2. Authorize the First Deputy Prime Minister of the Republic of Kazakhstan, Umirzak E. Shukeyev, to sign on behalf of the Republic of Kazakhstan an Agreement on the functioning of the Customs Union within the framework of the Multilateral trading system, authorizing amendments and additions that are not fundamental.
3. This Decree shall enter into force from the date of signing.
President of the Republic of Kazakhstan N. Nazarbayev
APPROVED
By Decree of the President of the Republic of Kazakhstanot
June 24, 2011 No. 103
Project
The AGREEMENT on the functioning of the Customs Union within the framework of
the multilateral trading system
THE Republic of Belarus, the Republic of Kazakhstan and the Russian Federation, hereinafter referred to as the Parties, BEING members of the Customs Union created by them, CONFIRMING the desire of the Parties to join the World Trade Organization, hereinafter referred to as the WTO, as soon as possible, RECOGNIZING that membership of each of the Parties in the WTO will create favorable conditions for deepening their integration into the international trading system and effective the functioning of the Customs Union in accordance with the rules and obligations under the WTO, REAFFIRMING the need and advantages of unifying and uniformly applying the Parties' trade regimes with respect to third countries in order to promote trade and attract investment, TAKING INTO ACCOUNT the universal nature of the WTO in terms of its membership and coverage of international trade regulation issues, NOTING the high WTO requirements for its members regarding compliance with the Marrakesh Agreement establishing the WTO, (hereinafter referred to as WTO Agreement), as well as the obligations assumed by each member, RECOGNIZING the need to interpret the trade regimes of the Parties to the Customs Union in the context of the WTO Agreement, we have agreed as follows:
Article 1
1. From the date of accession of any of the Parties to the WTO, the provisions of the WTO Agreement, as defined in the Protocol on the Accession of this Party to the WTO, including obligations assumed as a condition of its accession to the WTO and related to legal relations, the powers to regulate which within the framework of the Customs Union delegated by the Parties to the Customs Union authorities, and legal relations regulated by international agreements which constitute the contractual legal framework of the Customs Union, become part of the legal system of the Customs Union. At the same time, the first Party joining the WTO is obliged to inform the other Parties and coordinate with them actions regarding the acceptance of obligations as a condition of its accession, requiring changes to the legal system of the Customs Union. 2. From the moment such a Party joins the WTO, the rates of the Single Customs Tariff of the Customs Union will not exceed the import tariff rates provided for in the List of Concessions and Obligations on Market Access for Goods, which are an annex to the Protocol on the Accession of this Party to the WTO, except as provided by the WTO Agreement. 3. Upon subsequent accession to the WTO by the other Party, its obligations assumed as a condition of accession to the WTO, related to legal relations, the powers to regulate which within the framework of the Customs Union are delegated by the Parties to the Customs Union authorities, and legal relations regulated by international agreements forming the contractual legal framework of the Customs Union, also become part of the legal system of the Customs Union. At the same time, the Party joining the WTO is obliged to inform the other Parties and coordinate with them actions regarding the acceptance of obligations as a condition of its accession, requiring changes to the legal system of the Customs Union. 4. In the event of differences between the consolidated results of negotiations on import duty rates of the Parties reached during the WTO accession process, such Parties will immediately consult with each other and promptly enter into negotiations with WTO members whose interests are affected by such discrepancies in order to harmonize import duty rates. At the same time, all Parties coordinate their positions and express their intention to be guided by the relevant provisions of the WTO Agreement, which apply in the case of tariff harmonization by customs unions. The rates of the Single Customs Tariff of the Customs Union will not exceed the rates agreed upon as a result of harmonization, except in cases stipulated by the WTO Agreement. 5. In negotiations on obligations of a systemic nature on issues within the competence of the Customs Union authorities, each newly acceding Party strives to form such a volume of obligations affecting legal relations, the powers to regulate which are delegated by the Parties to the Customs Union authorities, and legal relations regulated by international agreements constituting the contractual legal framework of the Customs Union, which is as consistent as possible would be the obligations of the Party that was the first to join the WTO. Fundamental deviations from such obligations resulting from the negotiations of the newly acceding Party to the WTO are subject to discussion and agreement by the Parties. 6. Regardless of the provisions of the first and third paragraphs of this Article, a Party that is not a WTO member has the right to derogate from the provisions of the WTO Agreement, including obligations assumed by the Party that joined the WTO and became part of the legal system of the Customs Union, to the extent that the legal system of the Customs Union and the decisions of its bodies require adjustments in accordance with Article 2, and/or if such legal relations are autonomously regulated within its national legal system. The Party using such derogations shall notify the Customs Union Commission of the nature and extent of such derogations, and the Customs Union Commission shall publish these notices. After the accession of such a Party to the WTO, any specified derogation will be permitted only if it is expressly provided for by the terms of the accession of such a Party to the WTO.
Article 2
1. The Parties will take measures to bring the legal system of the Customs Union and the decisions of its bodies in line with the WTO Agreement, as set out in the Protocol on the Accession of each Party, including the obligations of each Party, accepted as one of the conditions for its accession to the WTO. Before these measures are taken, the provisions of the WTO Agreement, including the obligations assumed by the Parties as conditions for their accession to the WTO, take precedence over the relevant provisions of international treaties concluded within the Customs Union and decisions taken by its bodies. 2. The rights and obligations of the Parties arising from the WTO Agreement, as defined in the Protocols on each Party's Accession to the WTO, including obligations assumed as a condition of the Party's accession to the WTO, which become part of the legal system of the Customs Union, are not subject to cancellation or restriction by decision of the Customs Union authorities, as well as the EurAsEC Court, or an international agreement concluded between the Parties. 3. If certain norms of the Customs Union's legal system are more liberal than the WTO Agreement, but do not contradict it, the Parties ensure the application of such norms for the purposes of the effective functioning of the Customs Union and the development of international trade. 4. When concluding international agreements within the framework of the Customs Union, and when adopting and applying acts of the Customs Union by its bodies, the Parties ensure that such agreements and acts comply with the WTO Agreement. 5. The provisions of this article will be applied subject to the derogations provided for in paragraph 6 of Article 1 of this Treaty.
Article 3
The provisions of the WTO Agreement governing the establishment of customs unions shall apply to the application of this Treaty.
Article 4
Reservations to this Agreement are not allowed.
Article 5
This Treaty is subject to ratification. The procedure for the entry into force, withdrawal from and accession to this Treaty is determined by the Protocol on the Procedure for the Entry into Force of International Treaties Forming the Legal Framework of the Customs Union, Withdrawal from and Accession to them dated October 6, 2007.
Done in the city of _________ in one original copy in the Russian language. The original copy of this Agreement is kept by the depository, which is the Commission of the Customs Union. The Depositary will send each Party a certified copy of this Agreement.
For For For the Republic of the Republic Russian Belarus Kazakhstan The Federation
President
Republic of Kazakhstan
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