Cis

Commonwealth of Independent States

(CIS)

Naveena Vejella 034

Nitin Gupta 035

Paramvir Singh Jaswal 037

04/13/23 1Group 3

The Commonwealth of Independent States (CIS)

Regional organization whose participating countries are former Soviet Republics, formed during the breakup of the Soviet Union.The organization was founded by the Republic of Belarus, the Russian Federation, and UkraineEstablished :Dec. 8, 1991Headquarters :Minsk, Belarus

04/13/23 Group 3 2

04/13/23 Group 3 3

CIS Members

04/13/23 Group 3 4

Objectives and PrinciplesEliminating barriers to trade in, and facilitating the cross-border movement of goodsPromoting conditions of fair competition in the free trade area, and ensuring equitable benefits to all Contracting States, taking into account their respective levels and pattern of economic developmentCreating effective mechanism for the implementation and application of this agreement, for its joint administration

04/13/23 Group 3 5

GDP (PPP)CIS Rank World Rank Country 2010 GDP (PPP)

millions of International dollars % of CIS total

— — CIS 3,120,250 100%

1 6 Russia 2,229,000 71.42%

2 38 Ukraine 306,300 9.8%

3 52 Kazakhstan 193,800 6.2%

4 58 Belarus 128,400 4.1%

5 71 Azerbaijan 90,150 2.9%

6 73 Uzbekistan 86,070 2.8%

7 86 Lithuania 56,220

8 98 Turkmenistan 36,640 1.2%

9 102 Latvia 32,200

10 111 Estonia 24,530

11 119 Georgia 22,070

12 129 Armenia 17,270 0.55%

13 134 Tajikistan 14,610 0.47%

14 138 Kyrgyzstan 11,850 0.38%

15 142 Moldova 10,600 0.34%

04/13/23 Group 3 6

CISFTA

04/13/23 Group 3 7

Was started in 1994 and amended in 1999It was directed at

a gradual cancellation of customs duties, taxes and levies which have equivalent effect and quantitative restrictions in mutual tradeelimination of other barriers to a free transfer of goods and servicescoordination of trade policy with respect to the countries which are not signatories to this Agreement; coordination of economic policy to that extent to which this is necessary to achieve the objectives of the Agreement

Negotiations on new CISFTA failedIn 2009 new agreement for creating FTA in 201119 May 2011 CIS meeting in MinskCISFTA was beneficial for Ukraine

04/13/23 Group 3 8

Some Notable CollaborationsEurAsian Economic Community (EAEC)

Custom unions between Belarus, Russia, Kazakhstan on 29 March 1996It aims to create common external policies, tariffs, customs, prices, and other components of a customs union and common market, such as a single currency, harmonization of national legislation, uniform foreign investment regimes, and joint transport and power markets.

04/13/23 Group 3 9

Some Notable CollaborationsCentral Asian Cooperation Organization (CACO)Objective

providing all the necessary preconditions for the effective cooperation in the political, economic, environmental, cultural, scientific and technical spherescreation of the system of mutual support in preventing the threat to independence and sovereignty, the territorial integrity of the CACO countries

04/13/23 Group 3 10

Some Notable CollaborationsECO Trade Agreement (ECOTA)

Was signed by Afghanistan, Iran, Pakistan, Tajikistan and Turkey in July 2003. Progressive elimination of Non Tariff Barriers and tariff rationalization. Aimed at raising intra-regional trade from 6% to 20% till 2015.

Shanghai Cooperation Organization:

Signed in June 2001 between the Kyrgyz Republic and China, the Russian Federation, Kazakhstan, Tajikistan and Uzbekistan.

04/13/23 Group 3 11

Some Notable CollaborationsCommon Economic Space

Involves a supranational commission on trade and tariffs that would be based in Kiev, initially beheaded by a representative of Kazakhstan, and would not be subordinate to the governments of the four nations. The ultimate goal would be a regional organization that would be open for other countries to join as well, and could eventually lead even to a single currency.

04/13/23 Group 3 12

Single Legal SpaceFor CIS and Europe in 2002 by scholar Oleg KutafinOrientation towards continental legal family of European lawMaking the harmonization of judicial practice of CIS countries compatible with Rule of Law principles

04/13/23 Group 3 13

MNEs in CIS

04/13/23 Group 3 14

The abundance of natural resources in the CIS has been one of the most important determinants of FDIsLarge market size.Investors do not yet seek efficiency in the CIS.MNEs in the CIS operate as isolated players.Weakly cooperating with local CIS firms.Problems faced by MNEs are volatility, corruption, backward technology etc

RussiaIt is a federal semi-presidential republic, comprising 83 federal subjects.Russia has a market economy with enormous natural resources (oil and gas)Oil, natural gas, metals, and timber account for more than 80% of Russian exports.The country has the world's largestnatural gas reserves,[153] the 8th largest oil reserves,[154] and the second largest coal reserves.MNEs which requires large quantity of natural reserves can invest in russia.

04/13/23 Group 3 15

UkraineIs a unitary state composed of 24 oblasts (provinces), one autonomous republic (Crimea)Ukraine's 2010 GDP (PPP), as calculated by the CIA, is ranked 38th in the world and estimated at $305.2 billion. Imports most energy supplies, especially oil and natural gas, and to a large extent depends on Russia as its energy supplier

04/13/23 Group 3 16

Obstacles in trade within CISPolitical factorsEconomic factors

04/13/23 Group 3 17

Opportunities and ThreatsOpportunities

Abundant natural resources, cheap land, highly educated and low cost workforce and relatively untapped market 35,000 Western companies in Moscow, 20,000 JV in Russia

ThreatsLack of clear legal protection for investments, contracts or rights to natural resourcesLack of Infrastructure for sourcing materials, communication, transportation - CISTFMafia

04/13/23 Group 3 18

Failures/ DrawbacksThe CIS lost most of its momentum and was victimized by internal rifts, becoming, according to some observers, largely irrelevant and powerless.By 1993, the ruble zone collapsed, with each state issuing its own currency.A free-trade zone was proposed in 1994, but by 2002 it still had not yet been fully established.In 1996 four states (Russia, Belarus, Krygyzstan, Kazakhstan) created a Customs Union but others refused to join

04/13/23 Group 3 19

RecommendationsCooperation among CIS countriesFocus on Infrastructure DevelopmentLegal Protection by Government to MNETap the National Diamond

04/13/23 Group 3 20

спасибо

04/13/23 Group 3 21