. /.  WORLD TRADE  
ORGANIZATION  WT/REG75/5 
12 March 2004  
 
(04-1109) 
Committee on Regional Trade Agreements Original:   English 
   
FREE TRADE AGREEMENT BETWEEN  
THE KYRGYZ REPUBLIC AND UZBEKISTAN 
 
Questions and Replies
 
 
 The following communication, dated 5 February 2004, is being circulated at the request of the 
Delegation of the Kyrgyz Republic. 
 
 This document reproduces the questions addressed  to the Kyrgyz Republic and the responses 
submitted.  The questions and replies set out below are organized in accordance with document 
WT/REG75/3. 
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I. BACKGROUND INFORMATION ON THE AGREEMENT 
3. Scope 
 
In addition to the tariff differential and/ or enhanced services commitments created by 
the elimination of duties in the context of th e FTA, does the agreement have other provisions 
that affect the comparative economic market access opportunity of countries that are not 
parties to the agreement? 
 There are no other provisions that affect  the comparative economic market access 
opportunities of third countries in the Agreement. 
 
Article 19 provides for application of the agreement towards contracts conducted but 
not fulfilled during its period of operation. What does this mean? Please provide an example. 
 This means that if Parties agreed to te rminate the action of the named Agreement and 
economic entities concluded long-term contracts on delivery of any goods, they will fulfill such 
deliveries under previous treatment until expiration of  the contract’s operation. At present the parties 
shall not initiate the denouncement of the Agreement and the provision of Article 19 is not applied.  
  
II. TRADE PROVISIONS 
 
1. Import Restrictions 
 
We have reports that the border between Kyrgyz and Uzbekistan is effectively closed to 
trade. How does the FTA address this reality and/ or provide a framework for restoring trade? 
 The Free Trade Agreement operates only in the area of non-application of customs duties and 
quantitative restrictions for export and/or import of goods. As far as taxe s and charges having 
equivalent effect are concerned, according to the Resolution of the Government of the Republic of 
Uzbekistan # 567 of December 25, 2003 (Appendix #2) the excise fee on a wide range of goods rated WT/REG75/5 
Page 2  
 
from 10 to 90% was introduced.  Therefore, excise duty’ s effect is equivalent to that of the customs 
duty. This is the essential restriction in trade.    Another restriction in trade with Uzbekistan is that the economic entities have difficulties in performing trade operations with Uzbek partners due  to lack of convertibility of Uzbek national 
currency, i.e. “sum”, introduction of visa regi me, and reduction of border-crossing points. 
  In spite of the arrangement on freedom of tr ansit in the given Agreement, as well as in the 
Agreement in International Road Communication between two republics, the Resolution of the 
Cabinet of Ministers of the Repub lic of Uzbekistan #567 of Decemb er 25, 2003 “On Rates of Charges 
to the Republican Road Fund under the Ministry of Fi nance of the Republic of Uzbekistan for Entry, 
Exit and Transit of Road Vehicles of Foreign and Neighboring Countries to the Territory of the 
Republic of Uzbekistan” introduces a fee for entry and transit of Kyrgyz cargo road vehicles and 
buses along the territory of Uzbekistan that amounts to 300 USD. This is the essential restriction of 
export of Kyrgyz goods to Uzbekistan, as well as to other countries. 
 
 The significant intensification of trade re lations is possible in case these obstacles are 
removed.   
III. GENERAL PROVISIONS OF THE AGREEMENT 
1. Exceptions and Reservations 
 
 1.1 General exceptions   
Article 5 provides an exception for the pr eservation of exhaustible natural resources. 
Which specific products and regulations qualify for this exception? What does the exception 
mean in practice? 
 Currently there are no such exceptions. A list of specific products and legislations was not 
developed by the Parties.   
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