Common Economic Zone Agreement

The Single Economic Space Agreement (SES) or Common Economic Zone Agreement (CEZ) is an international agreement on the intention to create conditions for the free movement of goods, services, capital and labor (single market) without the creation of supranational bodies, signed on 19 September 2003 by Belarus, Kazakhstan, the Russian Federation and Ukraine. Initially this project was a separate one, but in June 2006, the implementation of this project was incorporated into the Eurasian Economic Community.

According to Regional Trade Agreements Database of the World Trade Organization, this agreement was signed on 19 September 2003, entered into force on 20 May 2004 and is "In Force" as of 2024. The withdrawal of Ukraine from this Agreement took effect on 21 July 2023 (see WTO Document WT/REG254/N/2). It was Ukraine that notified the World Trade Organization of its participation in the agreement on August 18, 2008.

History
After discussion about the creation of a "common economic space" between the Commonwealth of Independent States (CIS) countries of Russia, Ukraine, Belarus, and Kazakhstan, agreement in principle about the creation of this space was announced after a meeting in the Moscow suburb of Novo-Ogarevo on 23 February 2003.

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

On 22 May 2003 The Verkhovna Rada (the Ukrainian Parliament) voted 266 votes in favour and 51 against the joint economic space. However, most believe that Viktor Yushchenko's victory in the Ukrainian presidential election of 2004 was a significant blow against the project: Yushchenko has shown renewed interest in Ukrainian membership in the European Union, and such membership would be incompatible with the envisioned common economic space.

With the revival of the Eurasian Economic Community in 2005 there is a possibility for the "common economic space" agenda to be implemented in its framework of a Union of Russia and Belarus with or without the participation of Ukraine. This was confirmed in August 2006 and in October 2007 it was announced that a customs union would be formed by Russia, Belarus, and Kazakhstan by 2011 with other members being able to join later.