RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG82/4
3 January 2001
(01-0015)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN AZERBAIJAN, ARMENIA, BELARUS,
GEORGIA, MOLDOVA, KAZAKHSTAN, THE RUSSIAN FEDERATION, UKRAINE,
UZBEKISTAN, TAJIKISTAN AND THE KYRGYZ REPUBLIC
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 document
WT/REG82/3.
_______________
I. BACKGROUND INFORMATION ON THE AGREEMENT
2. Type of Agreement
1. Has a transitional period for the creation of free-trade area (FTA) been determined?
What is its duration?
The Kyrgyz Republic believes that the Agreement has already created a FTA within the
meaning of article XXIV:8(b) of GATT 1994.  Customs duties, taxes and charges which are of
equivalent effect and quantitative restrictions are eliminated on substantially all the trade between the
Parties.
3. Scope
2. According to the explanation given in Sect ion 3 of document WT/REG82/3, the common
list of exceptions to the free-trade regime was to  be agreed by the Parties;  however, that was
never done.  Can the Kyrgyz Republic clarify if and when the above-mentioned "list" will be
completed and when the exceptional goods are expected to be scheduled?  Can the Kyrgyz
Republic also clarify whether there exist any other agreements which stipulate the eliminationof duties and other restrictive regulations of commerce?
It was originally planned that a common list of exceptions would be developed.  However,
according to provisions of Protocol on Amendments and Supplements to the Agreement on Creation
of Free Trade Area of 2 April 1999, this plan was replaced by the intention of the Parties to eliminate
all the existing restrictions and to establish free trade regime with no restrictions and exceptions.Thus, such "list" will not be developed at all.
A bilateral FTA Agreement between Armenia and the Kyrgyz Republic will be notified to the
Committee on Regional Trade Agreements (CRTA).
1  Other bilateral agreements of the Kyrgyz
Republic, which stipulate the elimination of duties and other restrictive regulations of commerce, arealready notified to the CRTA.
                                                     
1 See WT/REG114/N/1.WT/REG82/4
Page 2
3. Have the schedules of abolition of the exceptions to the free-trade regime been
elaborated in the 12-months period as stipulated  in the revised wording of Article 3:2 of the
Agreement?  Please submit to the Committee a detailed information containing the list of goods
subject to exceptions and their tariff numbers.  What is the schedule of elimination of the
exceptions?
The schedules of abolition of the exceptions to the free-trade regime as stipulated in the
revised wording of Article 3:2 of the Agreement have not been elaborated yet.  The Kyrgyz Republic
applies no exceptions to the free-trade regime in trade with the Parties to the Agreement.  See also the
last paragraph of Section I.3 of WT/REG82/3.
4. Trade Data
4. Annex I of WT/REG82/3 provides data on the percentage of trade covered by the
Agreements between the Kyrgyz Republic and the Russian Federation and Uzbekistan,
respectively.  Please provide data, in the agricultural and industrial sectors, on the percentage of
trade between the Parties, for each Party, which faced zero-duties, less than MFN rates or MFN
rates.
All the trade covered by the Agreements faced zero-duties.  All the trade excluded from the
Agreement faced MFN rates.
II. TRADE  PROVISIONS
1. Import Restrictions
5. Does the exclusion of Article 2 of the Free Trade Agreement (in accordance with
paragraph 7 of the protocol on Amendment and Supplements to the Agreement, WT/REG82/1,
p.18) mean that the Parties lose their rights to  a self-dependent and independent determination
of a regime of their foreign economic relations with third countries?
Although Article 2 was excluded, similar provision was introduced in Article 20 of the
Agreement.   According to this Article, Partie s maintain their rights to a self-dependent and
independent determination of a regime of their foreign economic relations with third countries.
5. Safeguards &
6. Anti-Dumping and Countervailing Measures
6. Please explain whether measures, such as anti-dumping and subsidies, which are
stipulated in the CIS FTA but not stipulated in  each bilateral regional trade agreement, will be
applied or not.
There is nothing in the CIS FTA and in bilateral FTAs which prevents Parties from applying
anti-dumping and countervailing measures, stipulat ed in the CIS FTA but not stipulated in each
bilateral regional trade agreement.
7. Subsidies and State-Aid
7. What kinds of subsidies are allowed under Article 9 of the Agreement?
Subsidies, which are not prohibited by Article 9 of the Agreement and other bilateral
agreements between the Parties, are allowed.WT/REG82/4
Page 3
8. What forms of state support are permitted under Article 12 of the Agreement?
No forms of state support under Article 12 of the Agreement are specified.  The purpose of
this Article is not to restrict certain forms of state support, but rather to declare the wishes of the
Parties to encourage businesses in different member countries cooperating in joint production ofgoods.
9. Other
9. Have priority types of services - with respect to which the issues of liberalization of
importation and exportation are to be immediately solved - been singled out (Article 17 of the
Agreement)?
Priority types of services with respect to which the issues of liberalization of importation and
exportation are to be immediately solved under Article 17 of the Agreement have not been singled out
yet.  According to the terms of reference for the exam ination of this Agreement, the CRTA examines
the participation of the Kyrgyz Republic in the CIS Free Trade Area Agreement in light of the
relevant provisions of the GATT 1994.  GATT 1994 does not cover trade in services.
III. GENERAL PROVISIONS OF THE AGREEMENT
4. Relation with other trade agreements
10. What could be the implications in cases on contradiction between the provisions and
objectives of the examined Agreement and the commitments under other international
agreements.
The Kyrgyz Republic believes that the provisions and objectives of the Agreement being
examined do not contradict with its commitments under other international agreements.
11. The current situation is that the Kyrgyz Republic is Party to a FTA with ten other
countries and also to other bilateral agreements  with some of them and that those agreements
seem to exist in parallel.  Are there any propos als for terminating or consolidating any of those
parallel agreements?
There are no proposals for terminating or consolidating any of the agreements.  Existence of
the plurilateral and bilateral agreements with the same countries does not contradict to the provisionsof GATT 1994.
12. Of the five regional trade agreements, on ly the Regional Trade Agreement between
Kyrgyzstan and Kazakhstan explains that it is based on the CIS FTA, while the four remaining
regional trade agreements seemingly have no relation with the others.  Can the Kyrgyz Republicexplain the relationship between the fo ur remaining agreements and the CIS FTA?
CIS FTA and bilateral FTAs of the Kyrgyz Republic with Kazakhstan, Moldova, Russian
Federation, Ukraine and Uzbekistan are separate legal documents and each Agreement shall be judged
on its own merit.WT/REG82/4
Page 4
IV. OTHER
13. Could the Kyrgyz Republic clarify the meaning of the second sentence of Article 1 of the
Agreement on Re-export of Goods and Procedure of Granting Permissions for Re-export
(Annex II, WT/REG82/1, p.15): "With respect to export of these goods planned for re-export,
the Parties of the customs territory from whic h these goods originate shall apply measures of
tariff and/or non-tariff regulation or shall gr ant foreign economic privileges during their
exports from customs territory".
For a more exact translation, the first and second sentences of Article 1 of the Agreement
(Annex II, WT/REG82/1, p.15) should be combined an d should read as follows: "The subject of this
Agreement is re-export of goods with respect to exports of which Parties from customs territory of
which these goods originate apply measures of tariff and/or non-tariff regulation or grant foreigneconomic privileges upon their exports from its customs territory".
2
This Agreement regulates issues related to re-exportation of goods originating in the customs
territory of a Party to the Agreement by a busine ss entity of another Party and which was previously
imported to the territory of the latter.  Re-export permissions are required only for goods for export ofwhich the country of origin applies tariff/non-tariff measures or grants privileges depending on which
territory the goods are destined - for example, when a product is subject to export duty in the country
of origin but exempted from the duty if exported and destined to the territory of a Party to the
Agreement.  If a business entity of latter wishes to re-export this product to a territory of a country
exports to which are subject to duty by the country of origin, it shall acquire permission from thelatter.  Therefore, it is intended to restrict unauthorized avoidance of export duties charged by the
country of origin.
14. Are business entities required to reimburse a part of the difference between the
transaction value of the re-export and the tran saction value of the export of goods from the
country of origin, as it is stipulated in Arti cle 4 of the Agreement on Re-export of Goods and
Procedure of Granting Permissions for Re-export (WT/REG82/1, p.16) ?
As a condition for issuance of permission for re-exportation to a third country, a country of
origin may require business entities to reimburse a part of the difference between the transaction value
of the re-export and the transaction value of the export of goods from the country of origin.  The
purpose of the reimbursement is to compensate payments (restrictions) which otherwise would have
been charged by country of origin if goods were exported from the territory of latter directly to thethird country.
15. The Agreement on Re-export of Goods and Procedure of Granting Permissions for Re-
export has been concluded for a period of five year.  Has it been prolonged?
According to Article 11, the Agreement  on Re-export of Goods and Procedure of Granting
Permissions for Re-export automatically prolonged for following five years starting from 22
November 1999.
__________
                                                     
2 See WT/REG82/1/Corr.1.