Supermacy of Law as a Fundamental Principle in the Work of the Eurasian Economic Union (B.M. Imashev, журнал "Kutafin University Law Review", N 2 (Volume 2), October 2015)

Supermacy of Law as a Fundamental Principle in the Work of the Eurasian Economic Union

B.M. Imashev (Kazakhstan),

Minister of Justice, the Republic of Kazakhstan Abstract

Журнал "Kutafin University Law Review", N 4, October-December 2015, р. 278-282.

The paper analyses peculiarities and transformations of the modern law in the context of globalization. The author emphasizes, that globalization today has a significant impact on every sphere of a society and state life. It is now impossible to develop in a closed society because the national issues are often closely connected with the regional and global challenges. The author pays particular attention to the legal interaction between the States members of the Eurasian Economic Union, which was established a year ago. The goal of the establishing of the Eurasian Economic Union is to guarantee the freedom of movement of goods and services, investments and labor resources, to ensure that the well-being of the citizens of the Member States continues to grow and to strengthen their national economies. The presentation take into consideration the correlation between economic integration and law as the regulating factor in these relations. Globalization as an influencing factor on the international relations has established new approaches towards sovereignty and its concepts. However in the author's opinion the claims about the loss of sovereignty of states in these conditions are the mistaken ones. State sovereignty remains a foundation of the constitutional system in modern states. So sovereign equality and territorial integrity, as well as respect for the political systems of the Member States are provided as one of the principles of the Union functioning. The author draws some provisions of the Founding Treaty providing for the Rule of Law in the activities of the Eurasian Economic Union.

Globalization today has a significant impact on every sphere of a society and state life. Timely reaction to the global demands and challenges defines the national economy development, facilitating the birth of integrative formations.

It is now impossible to develop in a closed society; the national issues are often closely connected with the regional and global challenges and strive for the sustainable development.

On May 29 there is the first anniversary since the leaders of three states, the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation, signed the historical document on the formation of the Eurasian Economic Union.

The goal of the establishing of the Eurasian Economic Union is to guarantee the freedom of movement of goods and services, investments and labor resources, to ensure that the well-being of the citizens of the Member States continues to grow and to strengthen their national economies.

The international economic organization, which was formed within the Eurasian territory, is the subject of interest for many states. One of the reasons for this interest and value of the new integration formation is its geographical situation between the strong global economic actors and markets, such as the European Union, China, and Southeastern Asian states.

Virtually two years ago in this Forum we were discussing the influence of international law upon the national legislation, the nature and differences of harmonization and unification of national legislation within the framework of the international and integration organizations.

Today we have the result of our discussion.

The Founding Treaty on the Eurasian Economic Union has more than just these definitions. Taking into consideration the correlation between economic integration and law as the regulating factor in these relations, the definitions of agreed, coordinated and unified policies are provided.

Another unique feature of the Treaty is that unlike all previous agreements on the formation of the free trade zone, common economic area and customs zone, it provides the definition of the 'Union Law', once again stressing the strive of the Member States towards the integrational union and formation of the common approaches towards regulation of trans-border economic issues.

At the stage of drafting the Founding Treaty, there were concerns regarding the risks of loss of state sovereignty. There exist these concerns also today.

The matter is that globalization as an influencing factor on the international relations has established new approaches towards sovereignty and its concepts. The globalization processes have become more and more accelerated in recent years undoubtedly having significant impact upon the state functioning, basic institutions of the state, and hence, upon the sovereignty itself. However, in spite of the ongoing deep and numerous global changes of the latest decades, state sovereignty remains a foundation of the constitutional system in modern states.

The states that are not capable to adapt their national policies to the multilateral demands of the modern world will not be able to deal with the demands of the global and regional integration and their growing influence upon the national policy. The objective economic demand for the global integration relates to both positive and negative consequences in various spheres of social development.

In my opinion, the claims about the loss of sovereignty of states in these conditions, particularly in respect to the Member States of the Eurasian Economic Union, are the mistaken ones, since the Treaty concerns voluntary transition of some of states' powers in order to guarantee good conditions for the functioning of the Union, but not of the sovereignty.

Recognizing our responsibility in this sphere, we have provided reasonable regulating tools at the level of the Founding Treaty, and they will guarantee the Rule of Law within the framework of the Eurasian integration.

Moreover, sovereign equality and territorial integrity, as well as respect for the political systems of the Member States are provided as one of the principles of the Union functioning.

It should be understood that the purpose for the formation and functioning of the Organization in question is limited solely to economic matters. They involve formation of the conditions for the sustainable development of the national economies, guarantees of the free market for the goods services, capitals and labor resources, improvement of the competitive ability in the situation of global economy.

At the same time, the mentioned regulators should be constantly monitored in order to establish conformance with the new global economic changes with the due respect for the national interests of the Member States.

In order to guarantee free capital market and to improve competitive ability in the global economic conditions, the Republic of Kazakhstan is currently considering the formation of the International Financial Center in accordance with all the international standards, the ideas of transparency and non-discrimination.

The special function of the Center is protection of the rights of consumers of the financial services by establishing the financial Court, which applicable law would be the international law. Together with the newly introduced institutions of the Investment Ombudsman and the Commissioner Representative for the Protection of the Rights of Entrepreneurs, this Kazakhstan's idea will facilitate the development of investment attractiveness, including the involvement of the Eurasian Economic Union.

I would like to draw your attention to some provisions of the Founding Treaty providing for the Rule of Law in the activities of the Eurasian Economic Union.

Firstly, it is the transparency of national legislation and Union law via guarantees of its openness and accessibility both at the drafting stage and after adoption.

Secondly, it is the evaluation of regulating influence, which is a regulatory mechanism allowing the business entities to participate in the process of development of the supranational acts of the Eurasian Economic Union.

It should be noted that the analogous mechanism was introduced into the legislation of Kazakhstan almost simultaneously when the Treaty was signed.

Thirdly, it is a formation of the Union Court. Its main purposes are to guarantee the uniform understanding of the Union law by the subjects through its interpretation and resolution of disputes involving Member States, Union bodies and business entities.

I would also like to underline one specific feature of the transparency principle in the Treaty on the Eurasian Economic Union. This principle refers only to the national legislation. I believe that in this respect there should be made an amendment. Transparency is also necessary in respect to the Union bodies as part of the Union law. The issue concerns guarantees of their accessibility via the official source of the Union law, as well as through the national information and legal systems.

Additionally, in the future it will be necessary to provide for accessibility of the Union acts in English in order to guarantee attractiveness of the Union economic policy for the other Parties.

Formation of the Eurasian Economic Union is taking place at a difficult time in the conditions of global transformation of the world economy. We, the parties involved in this process, should use every possibility to realize our optimistic ideas in practice, and to achieve agreements in order to strengthen good neighborly relations and mutual support between our states.