5CountriesAFGHANISTAN AZERBAIJAN PEOPLE’S REPUBLIC OF CHINA KAZAKHSTAN KYRGYZ REP. MONGOLIA TAJIKISTAN UZBEKISTAN EBRD (European Bank for Reconstruction and Development) IMF (International Monetary Fund) IsDB (Islamic Development Bank) UNDP UNDP World Bank World Bank Multilateral Institute ADB (Asian Development Bank) Introduction

First Regional technical assistance on Regional Economic cooperation RETA for Central Asia implemented in KAZ, KGZ, PRC(XUAR), UZB TAJ joins the cooperation CAREC unit established in ADB Introduction

7 First CAREC Ministerial Conference Customs Cooperation Committee(CCC) activated 2 nd CAREC MC, AZE, MON joins CAREC Multilateral Institutions Coordination Group established Transportation sector (TSCC)& Trade Policy Sector(TPCC) activated Energy Sector activated Introduction

8Countries AFGHANISTAN AZERBAIJAN PEOPLE’S REPUBLIC OF CHINA KAZAKHSTAN KYRGYZ REP. MONGOLIA TAJIKISTAN UZBEKISTAN Introduction

9 Introduction

1. Trade Tax Reductions and Simplifications 2. Reducing Barriers to Border Trade 3. Customs reform 4. The CAREC Transport and Trade Facilitation Strategy. Action plan Policy action to achieve the goals

1.harmonization of custom procedures and documentation. 2.customs automation. 3.data exchange. 4.joint customs control. (JCC) 5.risk management, post-entry audit, and customs Intelligence. 6.regional transit development. 7.frameworks for customs cooperation. Action plan Customs reform

Action plan Joint customs control Border cooperation and joint customs control between neighboring countries - expedite the movement of goods across borders - generate significant savings in financial and human resources

CORRIDOR 1: EUROPE – EAST ASIA CORRIDOR 2: MEDITERRANEAN – EAST ASIA CORRIDOR 3: RUSSIAN FEDERATION – MIDDLE EAST AND SOUTH ASIA CORRIDOR 4: RUSSIAN FEDERATION – EAST ASIA CORRIDOR 5: EAST ASIA – MIDDLE EAST AND SOUTH ASIA CORRIDOR 6: EUROPE – MIDDLE EAST AND SOUTH ASIA

1.100% of corridors improved by 2017; compared to 64% in Increased transit trade volume via the CAREC corridors to 5% of trade between Europe and East Asia by 2017; from less than 1% (about 34 million tons) in Increased intraregional trade volume by 50% by 2017; from the 2005 level (about 32 million tons) 4.Reduced time for border crossing along the CAREC corridors by 50% by 2012, and a further 30% by 2017, as compared to Action plan The key results of the Action Plan

CAS RTAs CAREC 자체가 FTA 가 아닌 경제협력체이므로 지금 부터 나오는 얘기는 중앙아시아지역 (Central Asia) 의 FTA 에 대한 소개이며, 여러가지 FTA 를 섞어서 설명을 하고 있으므로, 하나의 FTA 가 아니라는 것에 주의를 하셔야 될 것 같습니다. 여러분들이 생소한 중앙아시아지역의 경제협력이나 환경에 대해 가볍게 정보를 얻으실 수 있을 거라고 생각합니다.

CAS RTAs :ECO (ECOTA) 10 Countries (Enabling Clouse) Kazakhstan Uzbekistan Russia Kyrgyz Tajikistan Turkmenistan Afghanistan Azerbaijan

CAS RTAs : ECO (ECOTA) 10 Countries (Enabling Clouse) :CIS FTA 11Countries (GATT Art. XXIV ) Kazakhstan Uzbekistan Russia Kyrgyz Tajikistan Turkmenistan Afghanistan Azerbaijan

CAS RTAs :ECO (ECOTA) 10 Countries (Enabling Clouse) :CIS FTA 11Countries (GATT Art. XXIV ) :EurAsEC 6Contries CU (GATT Art. XXIV ) Kazakhstan Uzbekistan Russia Kyrgyz Tajikistan Turkmenistan Afghanistan Azerbaijan

CAS RTAs EurAsEC (Eurasian Economic Community)EAEC Members: Russia, Belarus, Uzbekistan, Kazakhstan, Kyrgyz Republic, Tajikistan Observers: Molavia, Ukraine, Armenia Russia KazakhstanBelarus ProductsBefore CU(%)After CU(%) Automobile(1500~1800cc)10, but not less than 0.1 Euro per 1cc 30, but not less than 1.5 Euro per 1cc Reinforced steel00~5 Refigerator020 Microwave oven515 Telephone010 Cosmetics515 Coffee515 Wine0.5 Euro per 1L20 Fish510 Tea1020 Cothes010 Heavy machinery025 Cotton wool010 PVC1015 Value of eastern’s EU Single tariff High rate of external tariff Gradual expansion

effects Spaghetti Bowl Effect Adverse effect

Trade Creation effect Owing to the CIS FTA, Kyrgyz had to import Oil from Azerbaijan. Especially, Azerbaijan could get advantages in terms of export due to CIS FTA effects Trade Creation effect

Trade diversion effect Kyrgyz had imported agriculture from Kazakhstan. After the FTA with Uzbekistan, however, they started to import agricultures from Uzbekistan Same tariff, higher quality effects Trade diversion effect 94.11

effects

Dictatorships and civil war had cause high tarrif

effects

Dutch Disease in Central Asia? Illegalities and corruption

issue According to scales of economy, population and stability of politics, Kazakhstan is a hub country among the central Asia

Kyrgyz sets a goal for being a transportation hub. Kazakhstan also have been developing as a hub issue

Civil war

issue Civil war Political instability

issue Civil war Political instability smuggling

issue Civil war Political instability smuggling Sealing the border

issue Civil war Political instability smuggling Illegalities and corruption Sealing the border

issue 내전 사회불안정 국경봉쇄 밀수입 국가부패 FTA 에 대한 비관세 장벽 등, 표준 및 원산지 증명에 대한 명확한 규정이 없음, 대부분 이 서비스 및 투자를 불포함 Civil war Political instability smuggling Illegalities and corruption Sealing the border Unskilled trade policy

Uncoo- perative -FTA and transportation negotiation’s imperfection - Frequent border blocking - A lot of transaction for smuggling Issue

Korea & CAREC Rate of Real GDP growth (%) GDP per capita($) Kazakhstan6.6026,943.1 Turkmenistan9.9324,131.9 Uzbekistan4.651,817.1 Kyrgyzstan Tajikistan Total However, trading effects has been promoting the economic development of Central Aisa Region.

Korea & CAREC (thousands of dollars) Trade volume between Korea and Central Aisa Reagion has increased.

Korea & CAREC (thousands of dollars) Investment in the Central Asia Regions is also increased.

Korea & CAREC Plant The industrial plant market recently taking shape in the Central Asia. New opportunities for growth, considering Korea's world-class competitiveness in the construction and operation of industrial plants.

Korea & CAREC Agriculture Central Asia has traditionally favorable natural environment for agriculture. Even though agriculture is of great importance in Central Asia, and food security is emerging as new issue in Korea, they do not cooperate each other in agriculture sector.

LP industries Korea CAS Korea & CAREC Complemantary Agriculture Energy Natural resource Wool Plant IT Technology Construction Investment Give and Take 互讓戰略