Russia, Belarus and Kazakhstan continue process of economic integration. From 1 July 2011 will begin the abolition of customs controls at the borders between three countries. Customs control will be conducted at the external borders of the Union.
Allied governments plan for the future freedom of movement not only of goods but also services, capital and workforce. All legal basis of the “Joint Economic Space” of the three countries should be formed and put into operation until January 1, 2012. How strengthening of cooperation will affect the economies of these countries? Win or lose businesses and citizens?
Belarus has already significantly increased inflation. National currency of Belarus was devalued by 50 percent in the past few days.
Customs Union of Belarus, Kazakhstan and the Russian Federation was created for the economic integration of three states, to create a single economic space in the part of former Soviet Union territory. The work of the enterprises in the same economic and legal environment should improve the competitiveness and efficiency of enterprises. But some companies may be harmed. Russian customs will dismiss more than 3,600 employees after the abolition of controls in the Customs Union. Inflation had already s increased In Belarus. Some firms may withdraw from to exist.
Creation of the European Union has brought significant benefits to countries of the Union, but also brought new problems. Problems in some countries (Greece, Spain, Portugal ...) impact on all countries. Countries of the Union would like to join the alliance and Ukraine, but Ukraine is keen to join the EU.
The main criterion for the usefulness of this union will be the citizens of these countries to live better or worse. Or, as it usually happens, rich become richer and poor poorer. What is your opinion?