RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG73/4
WT/REG74/4WT/REG75/4
WT/REG76/4
WT/REG81/4
5 January 2001
(01-0030)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENTS BETWEEN THE KYRGYZ REPUBLIC AND
THE RUSSIAN FEDERATION, UKRAINE, UZBEKISTAN, MOLDOVA, KAZAKHSTAN
Questions and Replies
This document reproduces questions addressed to the Kyrgyz Republic and the responses
submitted.  The questions and replies set out below are organized in accordance with documents
WT/REG73-76/3 and WT/REG81/3.
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I. BACKGROUND INFORMATION ON THE AGREEMENT
3. Scope
Concerns: all the agreements
1. Goods which are not included in the Protocol on Exceptions to the Agreement (such as
for the Kyrgyz Republic-Russian Federation and Kyrgyz Republic-Kazakhstan) are said to be
excluded in the respective Free Trade Agreements  (FTAs).  Can the Parties clarify in detail
which goods are in fact excluded under the above Protocol, and what percentage these goodscorrespond to among the total imports?  Depending on the percentage, there maybe cause for
concern with regard to "substantially all the trade" under the GATT Article XXIV:8(b).
Actually, goods which are included  in the Protocol on Exceptions to the Agreement, are
excluded in the respective FTAs.  As it is clearl y stated under Section I.3 of document WT/REG81/3,
the Kyrgyz Republic and the Kazakhstan do apply free trade regime with no exclusions.  Therefore,100 per cent of the mutual trade is covered by the Agreement.
All the trade of the Kyrgyz Republic with the Russian Federation is covered by the bilateral
Agreement on Free Trade (see Section I.3 and Annex I of document WT/REG73/3).
2. The Kyrgyz Republic explains that the goods not listed in the Protocol on Exceptions to
the Agreement have had their duties and other restrictive regulations of commerce eliminated.
As it is not clear whether any agreement exists explaining such an arrangement, can the Kyrgyz
Republic further elaborate on the situation?
Article 1.1 of the FTA between the Kyrgyz Republic and the Russian Federation
(WT/REG73/1) and Article 1.1 of the FTA between the Kyrgyz Republic and the Kazakhstan
(WT/REG81/1) states that Parties shall not apply customs duties, taxes and levies which have
equivalent effect, with respect to importation and exportation of goods originating in the customs
territory of one of the Contracting Parties and intended for the customs territory of the otherWT/REG73/4, WT/REG74/4,
WT/REG75/4, WT/REG76/4,
WT/REG81/4
Page 2
Contracting Party.  This provision applies to all goods traded between the Parties unless there are
exceptions fixed in the Protocol of Exceptions to the Agreements.
3. Please provide more details regarding the list  of exceptions of all the FTAs, in particular
how products were put on or off those lists, whether or not there is a final list, and whether the
duty rates that apply to the exceptions are of a preferential nature or simply the MFN rates.
The Kyrgyz Republic does not maintain exceptions  to any of the bilateral FTAs.  According
to paragraph 10 of the Protocol of 2 April 1999 (WT/REG82/1, page 19) no new restrictions will be
introduced.
If exceptions were introduced, the duty rates that would apply to the exceptions from the
Agreements would be the MFN rates.
Concerns: FTA between the Kyrgyz Republic and the Russian Federation
4. Pursuant to Article 1.1 of the Agreement, the Contracting Parties have to adopt a
Protocol of exceptions to the free trade regime on an annual basis.  Such a Protocol has been
adopted on 26 December 1992 and subsequently replaced by Protocol dated 12 July 1994.  Has
the requirement for a yearly adoption of new Protocols been fulfilled?  Please provide
information on the currently applied list of  the exceptions from the free trade regime.
According to Article 3 of the Agreement on Joining of the Kyrgyz Republic to the
Agreements on Customs Union (circulated in document WT/REG71/2), the Protocol on Exceptions
dated 12 July 1994 is no longer valid.  There are no exceptions to the Free Trade Agreement between
the Kyrgyz Republic and the Russian Federation.
5. Could the Kyrgyz Republic submit a complete list of the exceptions provided for in
Article 1 of the Protocol on Exceptions to Free  Trade Regime to the Agreement specified with
their respective tariff numbers?
See answer to question 4 above.
6. Please provide additional information regarding plans to conclude the bilateral
arrangements on phasing out of existing restrictions in trade between the Kyrgyz Republic andthe Russian Federation.
There is no need for such an arrangement since there are no restrictions that require phasing
out exists in trade between the Kyrgyz Republic and the Russian Federation.  Such arrangements are
to be concluded only between the Parties to the CIS FTA, which currently maintain restrictions in
mutual trade.
Concerns: FTA between the Kyrgyz Republic and Uzbekistan
7. Please submit the list of exceptions applied pursuant to Article 1 of the Protocol on
Exceptions to Free Trade Regime to the Agreement together with the respective tariff numbersof the products covered.
There are no exceptions to the Agreement.  See also Section I.3 of document WT/REG75/3.WT/REG73/4, WT/REG74/4,
WT/REG75/4, WT/REG76/4,
WT/REG81/4
Page 3
8. Please specify what are the implications of the "general schedule of exceptions" that the
Parties have to coordinate pursuant to Article 2:2 of the Agreement.  Have such a schedule and
methods of applying the exceptions been elaborated?
This is the document reproduced in the Annex to the document WT/REG75/1 (page 7).
Concerns: FTA between the Kyrgyz Republic and Kazakhstan
9. Section I.3 of WT/REG81/3 seems to contain contradictory information:  the first
sentence informs that the number of annual protocols of exceptions to the bilateral free trade
agreement have been signed, and according to th e second one all of the protocols provide for a
free trade regime without any exceptions and restrictions.  Could the Kyrgyz Republic clarify
whether any exceptions have been negotiated aft er the entry into force of the Agreement?  If
such exceptions are applied, please submit th eir list to the Committee on Regional Trade
Agreements.
There is no contradiction in Section I.3 of  WT/REG81/3.  To put it simply: Protocols of
exceptions contain no exceptions.  After the entry into force of the Agreement no exceptions have
been negotiated between the Parties.  There are no  exceptions to the Agreement applied in trade
between the Kyrgyz Republic and Kazakhstan.
II. TRADE  PROVISIONS
1. Import Restrictions
Concerns: FTA between the Kyrgyz Republic and the Russian Federation
10. Article 3.2 of the Agreement lists the cases in which quantitative restrictions may be
established.  Are there any other reasons for the application of such measures envisaged in
Article 3.3?  Please specify.
Article 3.3 of the Agreement provides for a possibility of mutually agreed introduction of
quantitative restrictions as an exception to the rule of non-application of quantitative restrictions.
However, as indicated in answer to question 9 above, such exceptions may no longer be introduced.
3. Rules of Origin
Concerns: all the agreements
11. All five FTAs apply the "CIS Rules on Determining the Country of Origin of Goods".
According to the explanation given, for exampl e, in Section II.3 of document WT/REG74/3, the
rules provide for a possibility of using a cumula tive principle of origin while applying the
criterion of substantial transformation.  The cumulative principle can be used with respect to
the CIS countries.  However, the rules do not contain detailed provisions regarding cumulation.
We fail to see how cumulation will be judged.  Can the Kyrgyz Republic explain in detail, usingactual examples, how such rules of origin are applied?
Currently, cumulative principle of origin is not applied due to absence of detailed provisions
regarding cumulation.WT/REG73/4, WT/REG74/4,
WT/REG75/4, WT/REG76/4,
WT/REG81/4
Page 4
4. Standards
Concerns: all the agreements
12. It is not clear whether or not the Agreemen t on the Uniform Policy on Standardization,
Metrology and Certification executed by the CIS countries is a part of the CIS FTA.  Can the
Kyrgyz Republic explain the relationship between this Agreement and each FTA?
The Agreement on the Uniform Policy on Standardization, Metrology and Certification
executed by the CIS countries is not part of the CIS FTA nor related to any of the other bilateral
FTAs.
5. Safeguards
Concerns: all the agreements
13. With regard to safeguard measures, the Parties explain that these are only applied
internally.  However, it is not clear whether ea ch Party will be exempted when applying global
safeguard measures.  Can the Kyrgyz Republic clarify this point?
There are no provisions in the Agreements which exempt each Party when applying global
safeguard measures.
6. Anti-Dumping and Countervailing Measures
Concerns: all the agreements
14. In all five FTAs, there are no specific provisions covering anti-dumping and
countervailing measures.  Instead, it is explained that the Parties will acknowledge the
incompatibility of unfair business practices with in the objectives of the Agreement.  Can the
Kyrgyz Republic explain whether or not the Parties intend not to apply these measures among
themselves?  Will such measures be applied to non-parties without any discrimination?
There is nothing in the Agreements which prevents Parties from applying anti-dumping and
countervailing measures among themselves.  Anti-dumping and countervailing measures will beapplied to non-parties without discrimination.
Concerns: FTA between the Kyrgyz Republic and the Russian Federation
15. Can the parties to the Agreement introduce anti-dumping and countervailing measures
in their mutual trade?
Parties have acknowledged incompatibility of unfair business practice with the objectives of
the Agreement.  Parties to the Agreement can introduce anti-dumping and countervailing measures in
their mutual trade according to the Protocol on Mechanism of Application of Special Safeguards,
Antidumping and Countervailing Measures in Tr ade of Member-Countries of the Customs Union.
Preamble of this Protocol refers to the bilateral free trade agreements between the Parties to the
Customs Union.WT/REG73/4, WT/REG74/4,
WT/REG75/4, WT/REG76/4,
WT/REG81/4
Page 5
Concerns: FTA between the Kyrgyz Republic and Ukraine
16. Can the parties to the Agreement introduce anti-dumping and countervailing measures
in their mutual trade?
Parties to the Agreement can introduce anti-dumping and countervailing measures in their
mutual trade under Article 13(a) of the CIS FTA.
Concerns: FTA between the Kyrgyz Republic and Uzbekistan
17. Can the Contracting Parties take anti-dumping or countervailing measures under
Article 5 of the Agreement?
Parties to the Agreement can introduce anti-dumping and countervailing measures in their
mutual trade under Article 13(a) of the CIS FTA.
Concerns: FTA between the Kyrgyz Republic and Moldova
18. Can the parties to the Agreement introduce anti-dumping and countervailing measures
in their mutual trade?
Parties to the Agreement can introduce anti-dumping and countervailing measures in their
mutual trade under Article 13(a) of the CIS FTA.
Concerns: FTA between the Kyrgyz Republic and Kazakhstan
19. Is the introduction of anti-dumping or countervailing measures allowed in the trade
between the two Parties?
Parties have acknowledged incompatibility of unfair business practice with the objectives of
the Agreement (Article 8).  Parties to the Agreement can introduce anti-dumping and countervailing
measures in their mutual trade according to the Protocol on Mechanism of Application of Special
Safeguards, Antidumping and Countervailing Measures in Trade of Member-Countries of the
Customs Union.  The Preamble of this Protocol refers to the bilateral free trade agreements between
the Parties to the Customs Union.
IV. OTHER
Concerns: FTA between the Kyrgyz Republic and the Russian Federation
20. Could the Kyrgyz Republic describe what is meant by "goods delivered for the national
needs" in Article 4 of the Protocol on Exceptions?
Article 4 of the Protocol on Exceptions relates to implementation of the Intergovernmental
Agreement on Trade Economic Cooperation in 1994.  This agreement expired on 31 December 1994.
Therefore, Article 4 is no longer applied.WT/REG73/4, WT/REG74/4,
WT/REG75/4, WT/REG76/4,
WT/REG81/4
Page 6
21. Are payments for services on warehousing , trans-shipping, storing and transporting
goods as described in Article 10 of the Agreement allowed in currency of third country?
Article 10 of the Agreement does not prohibit Parties from allowing payments for services on
warehousing, trans-shipping, storing and transporting goods to be made in currency of third country.
It is the discretion of a Party to allow payments in a currency of third country.  In the Kyrgyz
Republic payments for such services are allowed only in Kyrgyz Soms.
Concerns: FTA between the Kyrgyz Republic and Kazakhstan
22. The Agreement has been concluded for a five-year period.  Will it be prolonged after the
expiry of that period?
According to Article 17, the Agreement automa tically prolonged for following five years
starting from 11 November 2000.
23. Are payments for services on warehousing , trans-shipping, storing and transporting
goods as described in Article 10:3 of the Agreement allowed in currency of third country?
Article 10.3 of the Agreement does not prohibit Parties from allowing payments for services
on warehousing, trans-shipping, storing and transporting goods to be made in currency of third
country.  It is the discretion of a Party to allow payments in a currency of third country.  In the Kyrgyz
Republic payments for such services are allowed only in Kyrgyz Soms.
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