18 october 2011

Statements following the meeting of the CIS Council of Heads of Government

Vladimir Putin

Addressing journalists after a meeting of the CIS Heads of Government

Participants:
“The adoption of the Free Trade Zone Treaty will definitely help eliminate many barriers and make a brand new step in the development of trade and economic ties between our countries. It will lay a solid foundation for further progress within the Commonwealth,” said the Russian prime minister.

Transcript:

Akil Akilov (Prime Minister of Tajikistan): Ladies and gentlemen, first of all I would like to say that we are all very pleased with the results of the meeting of the CIS Council of Heads of Government. As you know, at the summit on September 3 in Dushanbe, we adopted documents that are vital to our future collaboration. We heard statements from the leaders of the CIS member states that were related to the 20th anniversary of establishing the Commonwealth, and an analytical report “Twenty years of the CIS: Objectives and prospects”. These policy documents could not help but influence today’s agenda. We discussed some 26 issues in areas such as interstate relations, the economy, social issues, cultural cooperation and other areas of interaction.

The key issue on the agenda was, of course, the discussion of the Free Trade Zone Treaty. We signed the treaty that will definitely fuel our trade and economic relations. We made decisions related to the second stage of the CIS economic development strategy to 2020 and approved the interstate programme for cooperation in innovation technology. I know these objectives are quite topical across the Commonwealth. The other issues on today’s extended agenda are equally important. Specifically, we approved the concept for CIS rail transport strategic development to 2020 and the concept on CIS coordinated democratic policy. Considering the unsteady situation in the financial markets, I believe the timing is right for the agreement on guidelines and principles of policy regulating currency management in the CIS. It is important that this meeting in St Petersburg, which is being held on the 20th anniversary of the CIS, has given us an opportunity to analyse numerous aspects of our relations and discuss further development and strengthening of our mutually beneficial partnership. We strongly believe that this comprehensive approach will promote a well-balanced and efficient cooperation within the organisation. Thank you for your attention.

Vladimir Putin: Colleagues, ladies and gentlemen, I would like to add a few words as requested. I would like to remind you once again that trade among the commonwealth countries exceeded $134 billion in the first half of 2011, which is 48% more than last year and is comparable to pre-crisis levels. But this is not the limit. What makes us think so? First of all, we have signed a very important document that will effectively restructure trade and economic ties in the post-Soviet space. In 1994 we signed our first agreement on free trade, but the document never actually came into effect since it was not ratified by a number of countries due to some initial objections to some of its sections. Today we have resolved all these disputes and have signed a new agreement on free trade in the CIS.

The Free Trade Agreement will definitely eliminate many barriers and be a new step in the development of our countries’ trade and economic ties. In all, it will lay a solid foundation for further progress in the commonwealth. Our countries continue to pursue similar development goals and it is crucial to find a source of growth all across the CIS. Integration is, without a doubt, a source of growth and it will help us take full advantage of such factors as the capacious market, the interconnection of our economies, and sustainable technological cooperation. What is a free trade zone? Let me explain it in a few words. This means that we will lift export and import duties for some groups of goods. Indeed, there are several exceptions and we have accepted them, but these too will gradually become history.

What does the elimination of import and export barriers and duties mean? More than anything, it means that we are opening our markets for each other’s goods. Many products and goods will be available in our markets at lower prices and this will create more conducive conditions for the establishment of cooperative businesses. At the end of the day, this will make our economies more competitive.

I would like once again to thank all my colleagues, especially the experts who worked on this document. By the way, I would like to point out that the establishment of this free trade zone is completely in line with WTO principles and regulations. Moreover, several countries that signed the agreement, namely Kyrgyzstan, Armenia, Ukraine, and Moldova, have already joined the WTO. This agreement was signed by Russia, Ukraine, Belarus, Kazakhstan, Armenia, Kyrgyzstan, Moldova, and Tajikistan. The heads of several other delegations, including Azerbaijan, Uzbekistan, and Turkmenistan, have said they will consider signing the agreement by the end of the year. Thank you very much for your attention.

If you have anything to add, please go ahead.

Karim Massimov (Prime Minister of Kazakhstan): I totally agree with Mr Putin, and I would like to add a few comments. First, Mr Putin mentioned that talks on the free trade zone started in 1994 but we failed to come to any real consensus. I think that today we have taken a pivotal and conscious decision according to the instructions that we received from the heads of state. We are finally signed a very important and much-needed document. This will encourage the development of trade between our countries and attract new investment to each of the commonwealth countries. I know that, coupled with the previous arrangements related to the Customs Union and the common economic space involving three countries within the Commonwealth, it is a new opportunity and a new direction for our further development. Thank you.

Mikhail Myasnikovich (Prime Minister of Belarus): The Republic of Belarus has signed all the basic agreements that have been offered today by the Council of the Heads of the Government for our consideration.

I would like to say that we have partially implemented the provisions that Russian Prime Minister Vladimir Putin outlined in his article devoted to integration in the post-Soviet space. Belarus fully shares these views and the President of Belarus, Alexander Lukashenko, has spoken out on all these issues in his article today for Izvestia.

Moreover, I would like to point out that one of the documents that have been signed today is a programme for innovation development in the post-Soviet space of the Commonwealth of Independent States. There are 73 innovation projects contained in the programme that are in fact set for the future, and over 50 of them have already been initiated. This means that in addition to successful trade within the Commonwealth, we also intend to set up new enterprises that will produce goods of competitive quality for the CIS internal market and for global markets. We also discussed the professional qualifications of the workforce. We understand that the future belongs to higher education, to universities. This is true without any doubt. But a qualified workforce, qualified vocational training is equally important if we share a common labour market. I can see that the Commonwealth of Independent States has good prospects. Let me congratulate you and wish you success in these new projects.

Tigran Sargsyan (Prime Minister of Armenia): Colleagues, the Republic of Armenia takes much interest in establishing the free trade zone. We are interested in those integration processes that are underway within the CIS.

We live in a fast-changing world. We live in a world that is shrinking every day and where interdependence and mutual influence are becoming more and more pronounced. We must create a modern basis that will allow our economies to integrate, that will help us in resolving disputes and issues of mutual concern. The document we have signed today seems a necessary response. We have created a modern foundation that must be further refined, but we believe the document will be a new impetus for integration and economic growth in our countries.

I would like to say thank you to those who worked on these documents and who accomplished a huge amount of work. What we needed today was political will from the heads of government to make sure this document has finally been signed. My congratulations.

I think this is a momentous day because, frankly, we have worked on this document for 20 years. The CIS marks its 20th anniversary this year, and I think this momentous day proves that the CIS has chosen the right path. Thank you.

Omurbek Babanov (Acting Prime Minister of Kyrgyzstan): Colleagues, as you know, Kyrgyzstan has made the decision to join the Customs Union and sign this agreement. This decision is totally in line with our vision of our country’s development. And I would like to confirm what Mr Putin said about growing trade turnover. Trade between Kyrgyzstan and Russia has grown by nearly 30% in the past six months. I think by signing this treaty on free trade we will facilitate closer integration, I mean the economic integration of our countries. This is also an opportunity for me to congratulate our Commonwealth of Independent States on its 20th anniversary. I think this is only the beginning of translating our practical objectives into reality. Thank you very much.

Vladimir Filat (Prime Minister of Moldova): Colleagues, ladies and gentlemen, all  general points have already been mentioned, but it is obvious that the free trade zone treaty signed today will open new opportunities for all of us. It means that each of the signatory parties – and I hope my colleagues who did not sign the agreement today will soon join us – will be developing their relations in order to make the economy more efficient and competitive and to provide our people with good well-paid jobs and a proper income.

I’m happy we signed this treaty today, and I agree with what has been said. Even if the talks did not go smoothly and were too emotional, it was important that we finally reached a compromise and again, we needed political will, which is what we demonstrated today. This means we have a future. We must keep communicating and discuss any problems we have to find proper solutions. My congratulations and good luck to all of us! Thank you.

Vladimir Putin: Mr Azarov, please go ahead.

Mykola Azarov (Prime Minister of Ukraine): So, I am the last to speak.

Remark: In alphabetical order.

Vladimir Putin: You will provide the bottom line, and we’ll call it a day.

Mykola Azarov: Colleagues and journalists, today we are finishing the long and difficult stage of negotiating process over the establishment of a free trade zone for the CIS countries. At the summit of the CIS leaders in September, our president said that the negotiations were progressing too slowly. I think today we found the right solutions that will help us create an effectively functioning free trade zone within the Commonwealth. What does this mean? It means new jobs and developing opportunities for business, which is essential in the unsteady financial situation of today.

Is the treaty perfect or will it be subject to criticism? Of course, it is not perfect. It has its limitations and exceptions, but do you know any free trade agreement that would be complete? However, we specified timeframes to adjust any imperfection. This is very important for establishing a fully functional free trade zone for our countries. This is the main objective of this agreement. Our goal now is to work on further improvements. My congratulations and good luck.

Vladimir Putin: Thank you. Thank you very much!