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European Union
The European Union is the world's largest economic and political union with a common market based on free movement of goods, services, people and capital. The EU consists of 27 industrialized countries with a combined GDP of $ 11.8 trillion Euro (28% of the worldwide GDP). EU also accounts for 20% of the world trade. The Monetary Union (euro zone) includes 16 EU member states. The EU pursues a unified foreign policy.The Schengen area currently includes 22 EU members, provides visa-free travel within this territory.
Benefits of cooperation with such a deeply integrated union are particularly evident in the context of the challenges faced by the Republic of Belarus, such as further consolidation of national sovereignty, nation-building, modernization and reforms of the Belarusian society and economy, as well as integration of our country in the system of international relations as its equal participant.
The European Union is an extremely capacious and promising market for Belarusian companies. Lack of internal trade barriers ensures smooth circulation of goods, services and investments from third countries among all the 27 European Union member states, while a single currency facilitates mutual settlements in trade with all countries of the monetary union.
Under these conditions, even despite fairly high protective barriers and the quality requirements of the EU to imports from third countries, Belarusian exports to the EU have increased by more than 20 times since 2000. From 2003 on, Belarusian exports to the EU consistently exceed the volume of goods imported from the European Union, the bulk of which is formed of “critical” group product: high-tech equipment, key manufacturing materials, medicines, etc. The surplus in foreign trade with the EU in 2008 (pre-crisis year) has reached the maximum with the inflow to the state budget of about $ 6 billion.
In 2009 the share of the EU was 44% of the total volume of exports from Belarus, and about 32% of total turnover.
Dynamics of foreign trade between Belarus and EU
for 2002 — 2009 years. ($ Million)
|
|
2002
|
2003
|
2004
|
2005
|
2006
|
2007
|
2008
|
2009
|
|
Turnover
|
2921
|
4056
|
8210
|
10619
|
13969
|
17013
|
22975
|
15705
|
|
Exports
|
1440
|
2279
|
4970
|
7044
|
8984
|
10704
|
14427
|
9215
|
|
Imports
|
1481
|
1777
|
3240
|
3574
|
4985
|
6309
|
8547
|
6490
|
|
Balance
|
-41
|
502
|
1729
|
3470
|
3999
|
4395
|
5880
|
2725
|
European Union is one of the key investors for Belarus.
In the pre-crisis year 2008 EU investments in the economy of Belarus accounted for $ 2.79 billion, or 43% of total foreign investment over the period. In 2009, taking into account the crisis in the global economy, the inflow of European investment in Belarus fell to 2.62 billion dollars. However, their share in total decreased to 28%, mainly due to the increased interest of other states. Priority investment partners of Belarus in the EU in 2009 were Austria (932 million), Cyprus (536 million), Netherlands (439 million), United Kingdom (468 million), Germany (60 million dollars) , Latvia (59 million dollars).
In the pre-crisis year 2008 EU investments in the economy of Belarus accounted for $ 2.79 billion, or 43% of total foreign investment over the period. In 2009, taking into account the crisis in the global economy, the inflow of European investment in Belarus fell to 2.62 billion dollars. However, their share in total decreased to 28%, mainly due to the increased interest of other states. Priority investment partners of Belarus in the EU in 2009 were Austria (932 million), Cyprus (536 million), Netherlands (439 million), United Kingdom (468 million), Germany (60 million dollars) , Latvia (59 million dollars).
These funds are used to modernize the Belarus real sector technologically and launch new industries. It encourages domestic enterprises to be more competitive in foreign markets and make the domestic market less dependent on imports.
European Union is the main source of international technical assistance to Belarus
Since 1992 through technical assistance from the EU to the CIS (TACIS), Belarus was granted 200 million euros in more than 420 projects. As part of the Neighbourhood and Partnership Instrument of the European Union (the successor to the Tacis program) about 43 million euros was reserved for Belarus for 2007 — 2011. Another 64 million euros is to be allocated in 2012 — 2013. Currently there are 17 EU projects in Belarus underway totaling 10.5 million euros. Belarus is involved in 15 ENPI programs onnational, regional and transboundary levels.
This assistance is free and aimed at financing cooperation between Belarus and the EU in mutually beneficial directions. Those funds help equip the state border of Belarus with the EU countries, modernize the national border and customs infrastructure, exchange best practices and implement pilot projects in energy, transportation, agricultural production, environmental, educational, cultural and other priority areas.
Taking into consideration these circumstances, the Belarusian side since the establishment of diplomatic relations with the EU in August 1992 seeks to intensify the European vector of its foreign policy. As a result, in March 1995 Belarus and the EU signed a Partnership and Cooperation Agreement (PCA) in Brussels.
However, in September 1997 the EU imposed a series of politically motivated restrictive measures against Belarus. These measures included a ban on contacts at the highest levels,freeze on practical cooperation in various fields and technical assistance projects other than those related to Chernobyl mitigation. The ATP ratification was also suspended.
Consistent efforts of the Belarusian side to normalize the political dialogue with the European Union allowed to reverse the negative trends in relations with the EU. In response to the steps taken by the Belarusian authorities in the domestic sphere in October 2008 the EU suspended the previously imposed visa restrictions against a number of officials of the Republic of Belarus and cancelled the 1997 ban on contacts at the highest level with Belarus. An Office of the Commission of the European Communities (December 2009 — Representation of the EU) was opened in Minsk .
Since October 2008 a series of meetings of the Belarus Foreign Minister and the EU “Troika” were held. They laid a foundation to putting high-level political dialogue with the EU on a regular footing.
In 2009 — 2010 Belarus was visited by a number of senior representatives of the EU including EU High Representative for Common Foreign and Security Policy Javier Solana, EU Commissioner for External Relations Benita Ferrero-Waldner, Minister of Foreign Affairs of the then EU’s Czech Presidency Karel Schwarzenberg, European Commissioner for EU Enlargement and European Neighbourhood Policy Stefan Fule. The dialogue of the EU senior officials with the Head of the Belarusian State and Minister of Foreign Affairs contributed to putting EU relations on a more constructive track and converging positions on several issues of the mutual agenda. The parties embarked on an expert dialogue in energy, transport, environment, customs, agriculture, economic and financial fields, standardization and certification.
In 2010 the EU started preparatory negotiations with Belarus on visa facilitation and readmission agreements.
The EU “Eastern Partnership” initiative offers additional opportunities for interaction with the EU. It implies a significant intensification of the EU cooperation with six partner countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine.
On 7 May 2009 a national delegation headed by First Deputy Prime Minister of the Republic of Belarus took part in the inauguration summit of the “Eastern Partnership” in Prague. Belarusian representatives are making an active contribution to the work of the EP and ongoing multilateral consultations with the EU on further development of the Eastern Partnership and European Neighbourhood Policy as a whole.
Our country stands for an “Eastern Partnership” meeting best the practical interest of the partner countries in terms of socio-economic development, modernization and cooperation with the European Union in priority areas. Together with other countries, the Belarusian side initiates the development under specific projects aimed at developing a network of energy and transport communications, strengthening regional energy security, combating environmental threats, improving border security and customs for trade between the partner countries and EU. It proposes the establishment of regional mechanisms to attract investment, as well as a full-fledged “business-dimension” of the EP as a permanent platform for dialogue and cooperation between business and the economic associations of the partner countries and the EU.
In line with its long-term interests in the European direction our country as a member of the Customs union with Kazakhstan and Russia stands for a rapprochement between the Customs Union and European Union, building on a single integration platform by progressively harmonizing the regulatory sector and through trade liberalization between the two integration associations.
As a step towards building such a platform Belarus, Russia and Kazakhstan in November 2010 started official negotiations on free trade with the member countries of the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland) which is closely integrated with the EU within the European Economic Area.
European Union is the main source of international technical assistance to Belarus
Since 1992 through technical assistance from the EU to the CIS (TACIS), Belarus was granted 200 million euros in more than 420 projects. As part of the Neighbourhood and Partnership Instrument of the European Union (the successor to the Tacis program) about 43 million euros was reserved for Belarus for 2007 — 2011. Another 64 million euros is to be allocated in 2012 — 2013. Currently there are 17 EU projects in Belarus underway totaling 10.5 million euros. Belarus is involved in 15 ENPI programs onnational, regional and transboundary levels.
This assistance is free and aimed at financing cooperation between Belarus and the EU in mutually beneficial directions. Those funds help equip the state border of Belarus with the EU countries, modernize the national border and customs infrastructure, exchange best practices and implement pilot projects in energy, transportation, agricultural production, environmental, educational, cultural and other priority areas.
Taking into consideration these circumstances, the Belarusian side since the establishment of diplomatic relations with the EU in August 1992 seeks to intensify the European vector of its foreign policy. As a result, in March 1995 Belarus and the EU signed a Partnership and Cooperation Agreement (PCA) in Brussels.
However, in September 1997 the EU imposed a series of politically motivated restrictive measures against Belarus. These measures included a ban on contacts at the highest levels,freeze on practical cooperation in various fields and technical assistance projects other than those related to Chernobyl mitigation. The ATP ratification was also suspended.
Consistent efforts of the Belarusian side to normalize the political dialogue with the European Union allowed to reverse the negative trends in relations with the EU. In response to the steps taken by the Belarusian authorities in the domestic sphere in October 2008 the EU suspended the previously imposed visa restrictions against a number of officials of the Republic of Belarus and cancelled the 1997 ban on contacts at the highest level with Belarus. An Office of the Commission of the European Communities (December 2009 — Representation of the EU) was opened in Minsk .
Since October 2008 a series of meetings of the Belarus Foreign Minister and the EU “Troika” were held. They laid a foundation to putting high-level political dialogue with the EU on a regular footing.
In 2009 — 2010 Belarus was visited by a number of senior representatives of the EU including EU High Representative for Common Foreign and Security Policy Javier Solana, EU Commissioner for External Relations Benita Ferrero-Waldner, Minister of Foreign Affairs of the then EU’s Czech Presidency Karel Schwarzenberg, European Commissioner for EU Enlargement and European Neighbourhood Policy Stefan Fule. The dialogue of the EU senior officials with the Head of the Belarusian State and Minister of Foreign Affairs contributed to putting EU relations on a more constructive track and converging positions on several issues of the mutual agenda. The parties embarked on an expert dialogue in energy, transport, environment, customs, agriculture, economic and financial fields, standardization and certification.
In 2010 the EU started preparatory negotiations with Belarus on visa facilitation and readmission agreements.
The EU “Eastern Partnership” initiative offers additional opportunities for interaction with the EU. It implies a significant intensification of the EU cooperation with six partner countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine.
On 7 May 2009 a national delegation headed by First Deputy Prime Minister of the Republic of Belarus took part in the inauguration summit of the “Eastern Partnership” in Prague. Belarusian representatives are making an active contribution to the work of the EP and ongoing multilateral consultations with the EU on further development of the Eastern Partnership and European Neighbourhood Policy as a whole.
Our country stands for an “Eastern Partnership” meeting best the practical interest of the partner countries in terms of socio-economic development, modernization and cooperation with the European Union in priority areas. Together with other countries, the Belarusian side initiates the development under specific projects aimed at developing a network of energy and transport communications, strengthening regional energy security, combating environmental threats, improving border security and customs for trade between the partner countries and EU. It proposes the establishment of regional mechanisms to attract investment, as well as a full-fledged “business-dimension” of the EP as a permanent platform for dialogue and cooperation between business and the economic associations of the partner countries and the EU.
In line with its long-term interests in the European direction our country as a member of the Customs union with Kazakhstan and Russia stands for a rapprochement between the Customs Union and European Union, building on a single integration platform by progressively harmonizing the regulatory sector and through trade liberalization between the two integration associations.
As a step towards building such a platform Belarus, Russia and Kazakhstan in November 2010 started official negotiations on free trade with the member countries of the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland) which is closely integrated with the EU within the European Economic Area.
