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Learn about trade restrictions impacting Kyrgyz exports, the country's trade relations with neighboring states, and its membership in international trade organizations. Explore the opportunities in tourism, information technologies, culture, and trade.
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Trade Facilitation in Central Asia Tolondu Toichubaev Corporate Technologies Center
Situation 1 In response to competitiveness intensification of Kyrgyz export, neighboring statesraised trade restrictions regarding the country. Expenses caused by restrictions: • Truck with tobacco 10% of costs • Truck with fruits 100%of costs
Situation 2 In the second half of the 1990th, Kyrgyz export to main CIS states decreased, and share of the market was lost. • Russia - 0.16% to 0.12% • Kazakhstan- 1.24% to 0.47%
The Kyrgyz Republic • Has one of the most liberal trade regimes in CIS and is the first CIS state acceded to The World Trade Organization (WTO) in 1998. • Member state of Free Trade Zone of CIS (FTZ), established in 1992-94. • In 1996 The KR became a member of Customs Unionalong with Kazakhstan,Russia, Byelorussia; Tajikistan joined in 1998.
RESTRICTIONS ON TRADE WITH KAZAKHSTAN • Overweight fare about $500
Restriction costs • For truck, going from Bishkek to Novosibirsk, US$ 1598 of general costs are expected (excluding fuel charges and driver’s salary). • US$1308 or 82% of them will be collected in Kazakhstan.
Today • In the framework ofWTO some restrictions on trade and transit with Kazakhstan are removed • Partnership and cooperation agreements of Central Asian countries and The European Union • Regionalprojects - TRACECA
Conclusions • Work with neighbors is the most effective in the frames of international organizations and agreements • EU expansionurges forward the development of high standards of trade in Central Asian countries
Opportunities • Tourism • Information technologies • Culture • Trade