RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG114/1
16 January 2001
(01-0198)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN THE KYRGYZ REPUBLIC AND ARMENIA
The following text reproduces the Agreement between the Kyrgyz Republic and Moldova.
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AGREEMENT FREE TRADE BETWEEN THE CABINET OF MINISTERS OF
THE KYRGYZ REPUBLIC AND THE GOVERNEMENT OF THE REPUBLIC OF ARMENIA
The Cabinet of Ministers of the Kyrgyz Republic and the Government of the Republic of
Armenia, further referred to as "Contracting Parties",
Aspiring for the development of trade economic cooperation between the Republic of
Armenia and the Kyrgyz Republic on the basis of equality and mutual benefit,
Proceeding from  the sovereign right of either Contracting Party to carry out an independent
foreign economic policy and provide the fulfilment of the relevant international obligations and
implementation of declared intentions,
Intending  to assist in the creation of a single market of goods, services, capitals and
manpower,
Hereby agreed as follows:
Article 1
1. The Contracting Parties shall not apply customs duties, taxes, and levies which have
equivalent effect, with respect to exportation or importation of goods originated from the customs
territory of one of the Contracting Parties and intended for the customs territory of the other
Contracting Party.  Features of using the trade regime between both countries shall be in the form of
annual documents which are integral par hereof.
2. For the purposes of this Agreement and for the period it is effective, goods originated from
the territory of the Contracting Parties shall be goods:
(a) fully manufactured on the territory of the Contracting Parties,
(b) which were subject to processing on the territory of the Contracting Parties with the
use of raw material, materials and parts originated from third countries, and which
changed (because of that) the belonging based on the classification of the
Harmonized Commodity Description and Coding System proceeding from the first
four digits.WT/REG114/1
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(c) manufactured with the use of raw material, materials and parts mentioned in
paragraph (b), provided that their total cost does not exceed a fixed share of export
price for saleable goods.
Article 2
The Contracting Parties will not:
- directly or indirectly impose on goods, subject to this Agreement, domestic taxes or
levies which exceed the relevant taxes or levies imposed on similar domestically
produced goods or similar goods originated from third countries.
- with respect to importation or exportation of goods, subject to this Agreement,
introduce any special restrictions or requirements which are not similarly applied to
similar domestically produced goods or similar goods originated from third countries.
- with respect to warehousing, transhipping, storing and transporting goods originated
from the Contracting Parties, and with respec t to payments and transfer of payments,
apply rules other than those which are similarly applied with respect to their own
goods or goods originated from third countries.
Article 3
1. The Contracting Parties will refrain from applying quantitative restrictions or measures which
are equivalent with them with respect to exportation and importation of goods under this Agreement.
2. The quantitative restrictions mentioned in paragraph 1 of this Article may be unilaterally
established in reasonable limits and for a strictly certain period only:
• in cases of acute deficit of this product in the domestic market until the market
situation is stabilized;
• in cases of acute deficit of balance of payments until the situation with balance of
payments is stabilized;
• for the purposes of carrying out the measures provided by Article 4 hereof.
3. The quantitative restrictions of this Article may also be established on the basis of Parties'
mutual agreement and shall be included in yearly documents mentioned in paragraph 1 of Article 1
hereof.
4. A Contracting Party that applies quantitative restrictions in compliance with paragraph 2 of
the Article shall be obliged, upon inquiry of the other Contracting Party, to present necessary
information concerning the reasons for the introduction, forms and possible terms of applying thementioned restrictions.
5. The Contractions Parties will aspire to solve all the issues arising in connection with the
application of the quantitative restrictions in compliance with paragraph 2 of this Article by way
consultations.WT/REG114/1
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Article 4
Either Contracting Party will not allow re-exportation of goods with respect to exportation of
which the other Contracting Party, where these goods originate from, applies measures of tariff and/or
non-tariff regulation.
Re-exportation of these goods to third countries can be carried out only by written consent
and on terms determined by the authorized body of a State which is the country of origin of these
goods.  In the event that this provision is not implemented, a Contracting Party, whose interests have
been violated, shall have the right to unilaterally introduce measures, for the regulation of exportation
of goods to the territory of the State which allowed non-sanctioned re-export.  And the latter pay the
whole currency earning of such re-export to th e country of origin of the relevant goods.
Re-exportation shall mean that goods originated from the customs territory of one of the
Contracting Parties, as defined in paragraph 2 of Article 1 hereof, are exported by the other
Contracting Party outside the customs territory of th e latter with the aim of exporting them to a third
country.
Article 5
The Contracting Parties will, on a regular basis, exchange information on customs issues, as
well as customs statistics.  The relevant authorized bodies of the Contracting Parties shall coordinatethe order and volume of such information.
The Contracting Parties will inform each other of all exceptions to the current customs tariff
which are unilaterally applied.
Article 6
The Contracting Parties shall consider unfair business practice incompatible with the
objectives of this Agreement.  The unfair business practice is expressed in particular in the following:
- in concluding agreements between enterprises and their associations aimed at
impeding or restricting competition or violating conditions for the competition on theterritories of the Contracting Parties;
- in carrying out actions with the help of which one or several enterprises use their
dominant position restricting competition on the entire or considerable part of the
territory of the Contracting Parties.
Article 7
In carrying out measures of tariff and non-tariff regulation of bilateral economic relations, for
exchanging statistical information and carrying out customs procedures, the Contracting Parties haveagreed to apply a single 9-digit Goods Nomenclatu re of Foreign Economic Activity (GN FEA) based
on the Harmonized Commodity Description and Coding System and the Combined Tariff Statistical
Nomenclature of the European Economic Community.  And the Contracting Parties shall, for their
own needs, if necessary, carry out the development of the Goods Nomenclature beyond 9-digits.WT/REG114/1
Page 4
Article 8
The Contracting Parties have agreed not to use the national aid in the form of subsidies to
enterprises or in any other form, if such national aid might cause violation of normal economic
conditions on the territory of the other Contracting Party.
Article 9
The Contracting Parties have agreed that the observance of a principle of transit freedom shall
be the most important condition for achieving the objectives of this Agreement and shall be an
essential element of the process of their attachment to the system of international division of labor and
cooperation.
In this connection, either Contracting Party shall provide a free transit, via its territory, of
goods originated from the customs territory of the other Contracting Party and/or third countries and
intended for the customs territory of the other C ontracting Party or any third country.  Either
Contracting Party shall provide exporters, importers or carriers with all means and services availableand necessary to provide transit on terms not worse than those on which the same means and services
are provided to its own exporters, importers or carri ers, or to exporters, importers or carriers of any
third country.
The Contracting Parties have agreed that tariffs on transit by any kind of transport, including
tariffs on loading and unloading works, will be economically substantiated.
The Contracting Parties will conclude a special agreement on transit issues.
Article 10
Nothing herein must prevent a Contracting Party from taking measures which it considers
necessary to protect its vital interests or which are undoubtedly necessary for the implementation of
the international agreements of which it intends to become a signatory, if these measures concern:
• information affecting interests of the national defense;
• trade in weapons, ammunition and military equipment;
• investigations or production connected with needs of defense;
• deliveries of materials and equipment used in nuclear industry;
• defense of public moral and public order;
• protection of industrial or intellectual property;
• gold, silver or other precious metals and stones;
• health protection of people, animals and plants.
Article 11
The provisions of this Agreement shall replace provisions of the agreements concluded earlier
between the Contracting Parties, if the latter is either  not compatible with the former or identical to it.
The Contracting Parties will instruct bodies to prepare a relevant Protocol on this issue.
Article 12
This Agreement shall not affect the effectiveness of other Agreements earlier concluded by
the Contracting Parties with third countries.WT/REG114/1
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Article 13
Nothing herein shall prevent the Contracting Parties from carrying out relations, which do not
contradict the objectives and terms hereof, with States which are not Parties to this Agreement and
with their associations and international organizations.
Article 14
Disputes between the Contracting Parties regarding the interpretation or application of the
provisions hereof will be settled by way of negotiations.
Article 15
To carry out the objectives hereof and work out recommendations on improving trade
economic cooperation between the two countries, the C ountries Parties have agreed to establish a joint
Kyrgyz-Armenian Commission.
Article 16
The Contracting Parties have agreed that the Republic of Armenia may establish its trade
representative office in the Kyrgyz Republic, and the Kyrgyz Republic may establish its trade
representative office in the Republic of Armenia.  The legal status of these trade representative officesand their functions and location shall be additionally coordinated by the Contracting Parties.
Article 17
Any state may, provided that the Contracting Parties approve this, join this Agreement on
terms which will be coordinated between a joining state and the Contracting Parties.
Article 18
Protocol on Exceptions to Free Trade Regime to  be signed by the Parties within one month
period from the date this Agreement is signed shall be integral part hereof.
1
Article 19
This Agreement shall come into force from the date of exchanging notifications on the
fulfilment of all legal procedures necessary for this.
The Agreement shall terminate on the expiration of 12 months from the date of a written
notification of one of the Contracting Parties concerning the termination of the Agreement.
This Agreement will, after its termination, be applied to contracts between enterprises and
organizations of both countries which are concluded but not implemented in the period when it iseffective.
Done in Erevan, on 4 July 1994, in two originals.  Each is in the Kyrgyz, Armenian and
Russian languages, and all the texts shall be equally valid.
                                                     
1 The Protocol is reproduced in the Annex.WT/REG114/1
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ANNEX
Protocol on Exceptions to Free Trade Regime in 1994 to the
Agreement on Free Trade between the Cabinet of Ministers of the Kyrgyz Republic and
the Government of the Republic of Armenia, of 4 July 1994
The Cabinet of Ministers of the Kyrgyz Republic and the Government of the Republic of
Armenia, further referred to as Parties, agreed as follows:
Article 1
Exceptions provided by Article 1 of the Agreement on Free Trade between the Cabinet of
Ministers of the Kyrgyz Republic and the Governme nt of the Republic of Armenia, of 4 July 1994,
(further referred  to as the Agreement on Free Trade), shall apply to goods subject to legislation of the
Parties.
The Parties shall immediately inform each other of all changes to domestic legislation on the
aforementioned issues.
Article 2
With respect to goods to which tariff and non-tariff export restrictions are applied in
compliance with Article 1 of this Protocol, the Parties shall provide each other with the MFN
treatment with respect to:
- customs duties and levies charged in exportation of goods, including the methods of
charging such duties and levies;
- procedures and rules connected with exportation and importation of goods, including
those which relate to their customs clearance, transit, warehousing and transhipment;
- taxes and other domestic levies of any kind directly or indirectly connected with
exported (imported) goods,
- rules for selling, purchasing, transporting, distributing and using goods in the
domestic market;
- ways and transfer of payments.
Article 3
The provisions of Article 2 hereof shall not be applied to advantages and privileges granted
by each of the Parties to:
- third countries with the purpose of creating a customs union or a free trade zone, or as
a result of creating such a union or a zone;
- developing countries on the basis of international agreements.WT/REG114/1
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Article 4
This Protocol shall be integrated part of the Agreement on Free trade and shall come into
force on the day this Protocol in signed.
Article 5
This Protocol shall come into force on the date it is signed and shall be in force until a new
Protocol provided by Article 1 of the Agreement on Free Trade is signed.
Done in Erevan, on 4 July 1994, in two originals.  Each is in the Kyrgyz, Armenian and
Russian languages.  And both of the texts are equally valid.
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