Trade Facilitation in Central Asia Tolondu Toichubaev Corporate Technologies Center

The Kyrgyz Republic

Situation 1 In response to competitiveness intensification of Kyrgyz export, neighboring states raised 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 1990 th, Kyrgyz export to main CIS states decreased, and share of the market was lost.  Russia % to 0.12%  Kazakhstan % 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  Member state of Free Trade Zone of CIS (FTZ), established in  In 1996 The KR became a member of Customs Union along with Kazakhstan, Russia, Byelorussia; Tajikistan joined in 1998.

RESTRICTIONS ON TRADE WITH KAZAKHSTAN Official Transport restrictions Customs duty per unit 300 $150 $

RESTRICTIONS ON TRADE WITH KAZAKHSTAN Official Taxes for customs convoy varies within $26 to $260 Duties for customs declaration blank $17 E-copy of customs declaration $30 Toll bridges $2 to $25

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 of WTO some restrictions on trade and transit with Kazakhstan are removed  Partnership and cooperation agreements of Central Asian countries and The European Union  Regional projects - TRACECA

Conclusions  Work with neighbors is the most effective in the frames of international organizations and agreements  EU expansion urges forward the development of high standards of trade in Central Asian countries

Opportunities  Tourism  Information technologies  Culture  Trade