Eurasian Integration Yearbook 2012

Natalia Maqsimchook. “Chronicle of EurasianRegional Integration 2011”2011: Data and ReviewsState support for agriculture in Kazakhstan will not be limited since anadditional 6% would be allowed before it hits the maximum level. Additionalstate support may be used to encourage local production and increase itscompetitiveness. Moreover, Kazakhstan will benefit from an additionalmechanism for preventing unfair competition and protecting its domesticmarkets from its main trading partners. The agreement will cease to beeffective as soon as the parties join the World Trade Organisation(WTO).Kazakhstan, Russia sign up to coordinated exchange policy withinthe SESJuly 21, 2011Kursiv.kzSo far, only Kazakhstan and Russia have ratified an agreement on coordinatedprinciples of foreign exchange within the Single Economic Space. Accordingto experts, the agreement allows for the creation of a common, graduallyunified area to streamline cooperation in capital markets, labour migrationand mutual trade. A single currency space may be established in the longterm.The agreement defines how the SES member states will implement foreignexchange policy. It foresees a gradual harmonisation of foreign policy, creationof the legal and organisational foundations for currency integration, and aneconomic policy focused on boosting confidence in the national currencies ofthe member states.The SES countries should pursue economic policies aimed at increasingconfidence in the national currencies of its member countries, both on theirdomestic and on international currency markets. The parties pledge not tointervene in the currency sphere in a way that may adversely affect integrationprocesses, but where forced to act the member states must seek to minimise theconsequences of such actions.The tasks listed in the agreement fall into two categories. Firstly, theapproximation of legislation and coordination of foreign exchange policy arenecessary to provide equal opportunities for economic entities, includingfinancial institutions, which do not discriminate between residents and nonresidententities. Secondly, the agreement calls for coordinated measures toimprove the competitiveness and stability of all three economies within theglobal economy and global financial markets through the convergence of SEScurrency markets, national foreign exchange markets, and foreign exchangetransactions.www.tsouz.ruEurasian Development Bank245