RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG74/3
20 September 2000
(00-3736)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN
THE KYRGYZ REPUBLIC AND UKRAINE
Communication from the Kyrgyz Republic
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry into Force
The Parties to the Agreement are the Government of the Kyrgyz Republic on one side and the
Government of the Ukraine on the other.
The Agreement was signed on 26 May 1995.
Afterwards, on 6 June 1996, the Kyrgyz Republic no tified the Government of the Ukraine that
no internal procedures were required by the Kyrgyz Republic for the Agreement to become effective.
The Agreement became effective on 19 January 1998, when the Kyrgyz Republic received a note on
finalizing internal procedures from the Government of the Ukraine.
2. Type of Agreement
The Agreement creates a free trade area.  It provides for the elimination of customs duties,
taxes and charges having an equivalent effect to customs duties, on substantially all the trade between
the Parties.
3. Scope
The Agreement states that the Parties may develop a list of goods excluded from the free
trade regime, where the Parties find it necessary.  So far the Parties have not invoked this clause, and
currently there are no goods exempted from the free trade regime.  Furthermore, according to the
changes to the Commonwealth of Independent States (CIS) FTA Agreement, introduced by the
Protocol of 2 April 1999, no new re strictions will be imposed on trade between the Kyrgyz Republic
and the Ukraine from the date of entry into force of the Protocol.
4. Trade Data
Data on intra-trade is represented in Annex.WT/REG74/3
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II. TRADE  PROVISIONS
1. Import Restrictions
1.1 Duties and charges
Currently, customs duties, tariff quotas and charges having an equivalent effect to customs
duties on all imports originating from the Ukraine are eliminated.
1.2 Quantitative restrictionsThe Parties to the Agreement have agreed not to apply quantitative restrictions in trade
between them.  Currently, the Kyrgyz Republic does not apply any quantitative restrictions, ormeasures having an equivalent effect to quantitative restrictions, to the import of products originating
from the Ukraine.
2. Export Restrictions
2.1 Duties and charges
All customs duties, tariff quotas and charges having an equivalent effect to customs duties on
all exports to the Ukraine have been eliminated.
2.2 Quantitative restrictions
Currently, the Kyrgyz Republic does not apply any quantitative restrictions, or measures
having an equivalent effect to quantitative restrictions to the export of products to the Ukraine.
3. Rules of Origin
For the purposes of the Agreement, origin of goods is determined according to the CIS Rules
of Origin of Goods, of 24 September 1993, as amended
1 (hereinafter referred to as the Rules).
According to the Rules the country of origin of a product is considered a CIS country in which the
product was wholly produced or subject to substantial transformation.  The Rules provide for a list of
goods, which are considered wholly produced.  Substantial transformation may be manifested through(i) an ad valorem  portion, (ii) a list of production or technological processes, and (iii) changes of tariff
headings.  The list of production or technological processes is still being negotiated among the Parties
to the Agreement.  In cases where there are no criteria specified with respect to a particular product,
the general criterion of changes in tariff heading is applied.  A product is considered substantially
transformed if its tariff classification has changed at any of the first four digits with a list ofexceptions.  Such exceptions are being developed and may contain a list of production or
technological operations which, though cause a change in tariff line, are not considered a sign of
substantial transformation, or are considered such only if certain conditions are followed.  It may also
contain a list of production or technological operat ions, which though do not cause a change in tariff
line, are considered a sign of substantial transforma tion, provided that certain conditions are followed.
The Rules provide for a possibility of using a cumulative 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.
                                                     
1 The text of the Rules was circulated in document WT/REG82/1.WT/REG74/3
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4. Standards
The Parties to the Agreement may unilaterally introduce measures generally accepted in
international practice and necessary to protect life and health of human and environment, and to
protect animal and plant life.  The Agreement does not provide for common standards or mutualrecognition of certificates.
5. Safeguards
The Parties to the Agreement may unilaterally introduce quantitative restrictions or other
special restrictions with respect to the trade of products covered by the Agreement as a safeguard
measure in the following cases:
- critical deficit of the balance-of-payment;- where any product is being imported in such increased quantities and under such
conditions as to cause or threaten to cause injury to domestic producers of like or
directly competitive goods;
- an acute deficit of this product in the domestic market, until the market situation is
stabilized;
- with a view to carrying out the measures stipulated for re-exportation according to the
Agreement on the Re-export of Goods and Procedure of Issuance of Permissions for
Re-export, of 15 April 1994.  According to this Agreement, a written permission of the
country of origin is required for re-export by either Party to the Agreement to third
countries of goods originating from the territory of the other Party on which the latterapplies tariff and/or non-tariff measures or grants foreign trade privileges upon
exportation from its territory.  Where failure to fulfil this requirement causes damage to
the economy of the country of origin, such a Party may introduce quantitative or other
special restrictions.
A Party to the Agreement which applies a re striction shall provide, in advance, full
information on reasons for introductions, forms and estimated terms of applying the measure,
following which consultations are to be held.  There is no specific safeguard provision related to
agriculture.
6. Anti-Dumping and Countervailing Measures
The Agreement does not contain any specific provisions concerning anti-dumping and
countervailing measures.  Nevertheless, the Parties have acknowledged the incompatibility of unfair
business practice with the objectives of the Agreement (Article 6).
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
1.1 General exceptions
The Agreement does not preclude the Parties from using measures necessary to protect the
vital interests or to fulfill internatio nal agreements related to the following:WT/REG74/3
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- protection of life and health of people, animals and plants;
- protection of public moral and order;- trade in gold, silver or other precious metals and stones;- protection of industrial and intellectual property;1.2 Security exceptionsThe Agreement does not preclude the Parties from using measures necessary to protect the
vital interests or to fulfill internatio nal agreements related to the following:
- information concerning the national security interests;- trade in arm, ammunition and military equipment;
- research or production related to the needs of defence;
- supplies of materials and equipment used in the nuclear industry.
2. Accession
There is no provision in the Agreement allowing other countries to join it.
3. Dispute Settlement Procedures
Disputes between the Parties shall be solved through negotiations.
4. Relation with Other Trade Agreements
The Agreement does not establish any specific relation with other bilateral, plurilateral and/or
multilateral trade agreements.
5. Institutional Framework
The Joint Kyrgyz-Ukrainian Commission has been  established for the implementation of the
Agreement and development of recommendations to improve the trade and economic relations
between the Parties to the Agreement.
IV. OTHER
Other provisions of the Agreement refer to the following:
- Internal Taxation:  no internal taxes and charges are applied by the Parties, implying
directly or indirectly discrimination against the products of the other Party.
- Storage, reloading, warehousing, transportation, payments and transfer of payments:
no measures discriminating the products of other Party.
- Re-export-related issues shall be regulated by the Agreement on the Re-Export of
Goods and Procedure of Issuance of Permissions for Re-Export, of 15 April 1994.WT/REG74/3
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- Obligation not to allow unfair business practices, including, but not limited to, certain
practices of use by certain enterprises of their dominant position intending to limit
competition on the territories of the Parties to the Agreement;
- Freedom of transit;
- The Parties have agreed to use the CIS Goods Nomenclature of Foreign Economic
Activity based on the Harmonized Commodity Description and Coding System and the
Combined Tariff-Statistical Nomenclature of the European Union.WT/REG74/3
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ANNEX
Imports into the Kyrgyz Republic from Ukraine
(Thousand of US$)
Year H.S.
Chapter 1997 1998 1999
Total 4,813.0 6,934.8 6,319.2
10 - 3.4 -
11 - 66.4 54.1
14 - - -
15 - 30.6 60.3
17 439.0 796.6 616.3
18 - 261.6 253.4
19 - - 39.9
21 7.5 - -
22 179.5 4.1 128.2
24 31.1 - 329.3
25 - - 23.0
27 66.7 44.2 36.8
28 81.2 241.3 36.3
29 2.7 1.7 78.2
30 1,245.4 1,478.0 738.2
32 10.2 3.6 -
33 - 17.6 0.7
34 76.0 88.9 6.3
35 - 3.0 -
38 95.0 125.6 81.5
39 4.1 2.2 0.8
40 43.1 208.6 76.6
44 - 175.6 -
48 2.8 421.7 849.1
49 26.8 - 156.0
50 - 72.0 -
53 25.9 - -
57 - 30.4 55.1
59 19.4 10.4 9.0
61 - - -
62 - 7.5 -
63 4.1 6.6 -
64 - 20.2 -
68 - 7.7 -
69 174.8 312.7 42.2
70 70.5 - -
71 - 90.0 -
72 - 157.7 202.2
73 138.5 687.2 11.9
74 68.2 88.8 34.3
81 - - 9.8
82 - 13.2 106.4
83 3.3 20.2 -
84 1,434.2 683.0 1,533.0WT/REG74/3
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Year H.S.
Chapter 1997 1998 1999
85 340.5 297.9 562.6
86 - 50.9 -
87 141.0 140.2 127.9
90 10.1 5.2 50.3
94 71.2 54.1 9.3
96 - 5.5 -
Source:  National Statistics Committee.
Exports from the Kyrgyz Republic into the Ukraine
(Thousand of US$)
Year H.S.
Chapter 1997 1998 1999
Total 4,599.6 4,727.2 1,466.4
4 - 89.4 -
7 4.1 19.0 0.2
8 23.6 20.5 14.7
12 2.2 64.9 39.5
13 - - 18.9
20 - 3.1 0.4
22 - - 99.1
24 3,186.7 3,638.5 555.6
25 - - 11.6
27 - - 24.3
28 7.4 136.3 12.0
30 4.6 8.7 -
33 - - 2.4
39 3.7 0.8 10.6
51 - - 12.9
52 713.8 365.6 44.1
54 3.5 - -
55 13.2 - -
56 24.7 45.0 -
61 19.9 0.2 25.0
62 99.3 2.3 21.0
63 49.5 4.6 10.1
64 2.3 - 4.1
65 2.3 - -
73 1.1 22.9 -
81 - - 35.5
84 40.5 37.5 463.3
85 52.2 19.2 51.5
86 5.5 - -
87 - 139.8 9.2
90 - - 0.3
94 68.4 - 0.1
95 36.4 - -
Source:  National Statistics Committee.
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