www.mineconom.gov.kg

Plan of the Government of the Kyrgyz Republic on Export

Development for 2015-2017

Goal and Objectives of EDP

GOAL is to develop the competitive export potential for sustainable economic growth

Objectives: а) Creating basic conditions for achieving a more

attractive foreign trade regime;б) Improving competitiveness of goods and the liability of producers for their goods

Programme of the Kyrgyz Republic of Transition to Sustainable Development for

2013–2017:

EDP is focused on achievement of specific objectives in areas such as:

• Access to trade information;• Improving the capacity of economic entities and institutes;• Trade promotion;• Export support and promotion;• Trade facilitation;• Developing and supporting a quality infrastructure;• Decreasing the tax burden;• Providing exporters with access to financial resources.

EDP

E xp o rt va lue

E xpo rt g row th

W o rld m ark ets ha re

R e la tivetrade ba lan ce

E xp o rtp e rfo rm an ce

W o rld im p o rtg row th

S h a re o f a ttrac tivem arke tsin w o rld im po rts

T a riff A dvantage

W o rld m ark etP ro sp ects

W orldm a rke ts

Product qualityUnit labour costsProduction costProcess technology

Prod u ct and pro ce ss

Infrastructure costUp-/dow n-streamlinkages

Su pp o rtin g in du str ies

C o m petitiven essPro sp ec ts

D o m estic su pp lycond itio ns

Export potential index

F u ll-t im e e m plo ym enteq u iva lent

Jo b c reation

R u ral d eve lo pm e nt

Po verty red uc tion

In d us tr ia lisa tion

F o re ign c urren cyg e neration

En viro n m en talsu sta in ab ility

Socio-economic impact

Priority for export prom otion

Identification of priority sectors

Identification of priority sectors

Priority sectors

Tourism

Fruit and vegetables

Fruits and vegetables

Raw and processed meat

Milk and dairy products Clothing

Bottled water

Cross-sector functions

• Quality Management

• Trade information and promotion

• Access to finance

• Trade facilitation

Results of implementationMoU were signed with priority sectors business associations;Cooperation Agreements were signed with foreign TPO for exchange of trade information;Support provided to private sector to participate at number of exhibitions;

Application send to EU to obtain status of GSP+ for the Kyrgyz Republic and this January EU granted Kyrgyzstan these preferences;

Draft Concept on development of Guarantee Funds in the Kyrgyz Republic until 2020 developed. Register of veterinary products placed on Ministry of Agriculture website.

Sales tax for export of goods and services was canceled.The requirements of VAT excess refund and

reimbursement are being fulfilled.

In frame of joining to the EEUWithin accession to the Eurasian economic

union the national legislation has been brought into full agreement with legal framework of the EEU (40 laws and 51 resolutions GKR).

Movement of freights from the countries of participants of EEU has become simpler - procedure of examination and registration of freights imported from the country-participants of EEU was excluded.

Since November 18, 2015 has been cancelled sanitary and phytosanitary types of control on the Kyrgyz-Kazakh border.

35 technical regulations of the EEU have come into force.

4 priority customs border crossing points of the Kyrgyz Republic and 7 veterinary control check posts have been equipped.

18 Kyrgyz livestock enterprises were included in the register of companies, which can make deliveries to the territory of the Member States of the EEU (Russia and Kazakhstan).

Checklist for inspections of businesses producing milk and milk products in circulation in the territory of the Customs Union has been approved .

30 accredited laboratories and 7 certification bodies were included in the Unified Register of the EEU.

In frame of joining to the EEU

Access to financeThe Kyrgyz-Russian development fund was established.

The Fund began to supply credits to entrepreneurs up to 3 mln. USA dollar through 2 governmental banks since 3

September, 2015

On the project “Financing of Agriculture – 3” 10.2 % of total loans was issued to the processing industry in 2015.

A mechanism for the capitalization of the guarantee fund is being developed. Created 5 public funds.

Export promotion The Kyrgyz Republic took part in the World Exhibition "EXPO " and plans

to participate in the Interstate exhibition " 25 years of CIS : New opportunities of integration and partnership" exhibition and forum "Eurasian Week" in 2016 in Moscow .

The producers, suppliers and exporters who interested in delivery of goods to foreign markets can address to GE "Center "of a single window". Also, they can be registered in the GE database as the exporter, for the purpose of search potential buyers for them in the future.

For domestic production export promotion on the markets of the Russian Federation, there was appointed the representative of GE "Center "of a single window" in Moscow.

Negotiations with China on trade and economic agreement is in progress,  Agreement, on the one hand, will create conditions for market access for a large number of goods, on the other hand - preferences for large investment projects.

The signing of the agreement on free trade zone with 9 countries: Egypt , India, Indonesia, Iran, Tunisia, Israel, Serbia, Singapore and Cambodia is being worked out.

Agreement on free trade between the Eurasian Economic Union and the Socialist Republic

of Vietnam

• Agreement is signed, ratified and come into force at the 5th of October, 2016. Agreement with Vietnam provides the possibility of increasing exports of raw tobacco and alcohol products.

Access the Vietnam market

Diary products 0%

butter 0%

alcohol (vodka, beer) 0% in 10 year

oil products 0% in 12 year

tires 0% in 5 year

steel 0% in 5/10 year

cars 0% in 10 year

Product Conditions of access

Protection of the market of EEU

all kinds of meat

tea, coffee

sugar and confectionery

Pipes from steel

Automobile and trucks, tractors

Jackets, suits, leather footwear

Schedule of decrease in an average rate of the customs duty

BR EIF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20270.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Вьетнам ЕАЭСBR – a base rate of the customs duty EIF – the introduction of the Agreement in force

Thank you for your attention!

Meerim MomunzhanovaSenior specialist of the Trade Division

Ministry of Economy of the Kyrgyz RepublicOffice:00 996 312 624951Mob.:00 996 772 950500

Email: meerim.momunzhanova@gmail.com