Trade Facilitation in Central Asia

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Trade Facilitation in Central Asia

• Tolondu Toichubaev
• Corporate Technologies Center

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The Kyrgyz Republic
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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

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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

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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 Union
  along with Kazakhstan, Russia, Byelorussia
  Tajikistan joined in 1998.

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RESTRICTIONS ON TRADE WITH KAZAKHSTAN

• Official

2001 2002
Transport restrictions 4500 1000
Customs duty per unit 300 150

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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
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RESTRICTIONS ON TRADE WITH KAZAKHSTAN

• Overweight fare about 500

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Restriction costs

• For truck, going from Bishkek to Novosibirsk, US
  1598 of general costs are expected (excluding
  fuel charges and drivers salary).
• US 1308 or 82 of them will be collected in
  Kazakhstan.

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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

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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

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Opportunities

• Tourism
• Information technologies
• Culture
• Trade