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The leaders of Russia, Belarus and Kazakhstan took their longest stride to date in linking their economies, forming a customs union that they say will soon evolve into a more ambitious common market, with Russia at its hub.
The agreement, for now, eases trade among the three large former Soviet economies without fully abolishing all duties and tariffs.
The three also stopped short of reaching a common position on membership in the World Trade Organization, something Russia as an individual country has been trying to negotiate since shortly after the Soviet collapse in 1991.
The agreement, celebrated with much fanfare in the Kazakh capital of Astana, eliminates obstacles to trade and investment that went up after the collapse of the Soviet Union. That alone, analysts said, could give a boost to the region’s economies by introducing them to greater competition.
The signing was also a victory for Russia’s leaders, who have made the customs union a pet project for a variety of reasons, notably because Moscow stands to benefit as a natural hub for regional finance and trade.
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Clinton Seeks to Reassure Russia’s Neighbors JULY 5, 2010However beneficial for Russia’s regional standing, though, the agreement seemed to risk again derailing its long-delayed membership application for the World Trade Organization.
Last summer, Prime Minister Vladimir V. Putin said that Russia would abandon its unilateral membership bid and instead seek to join with Belarus and Kazakhstan in the customs union — an apparent signal that Russia had other options if W.T.O. conditions were seen as too onerous. Later, ministers backtracked and said Russia would negotiate for entry separately.
