RESTRICTED  
  
WT/TPR/G/411  
13 April 2021  
(21-3096) Page: 1/27 
Trade Policy Review Body   Original: English  
 
 
TRADE POLICY REVIEW  
REPORT BY  
KYRGYZ REPUBLIC  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by the 
Kyrgyz  Republic  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on the Kyrgyz  Republic . WT/TPR/G/411 • Kyrgyz Republic  
 
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  Contents  
1   INTRODUC TION  ................................ ................................ ................................ .........  3 
2   ECONOMIC POLICY  ................................ ................................ ................................ ..... 3 
2.1   Macroeconomic Situation  ................................ ................................ .............................  3 
2.2   Monetary and Fiscal Policy  ................................ ................................ ...........................  4 
2.3   Fiscal Policy and Development Issues  ................................ ................................ ............  5 
3   SECTORAL POLICIES AND REFORMS  ................................ ................................ ..........  6 
3.1   Agriculture  ................................ ................................ ................................ .................  6 
3.2   Industry  ................................ ................................ ................................ ....................  8 
3.2.1    Mining indus try ................................ ................................ ................................ ........  9 
3.3   Energy  ................................ ................................ ................................ ......................  9 
3.4   Tourism  ................................ ................................ ................................ ...................  11 
3.5   Information and Communication Technologies  ................................ .............................  12 
4   TRADE POLICY  ................................ ................................ ................................ .........  13 
4.1   Trade in Goods  ................................ ................................ ................................ .........  13 
4.2   Trade in Services  ................................ ................................ ................................ ...... 15 
4.3   Customs Regulation  ................................ ................................ ................................ .. 15 
4.3.1    Trade facilitation  ................................ ................................ ................................ .... 16 
4.4   Non-Tariff Regulation  ................................ ................................ ................................  17 
4.4.1    Technical regulation  ................................ ................................ ...............................  18 
4.4.2    Sanitary and phytosanitary measures  ................................ ................................ ....... 19 
4.5   Investment Policy  ................................ ................................ ................................ ..... 19 
4.6   Public Procurement Policy  ................................ ................................ ..........................  20 
4.7   Protection of Intellectual Property Rights  ................................ ................................ ..... 21 
4.8   Competition Policy and Business Environment  ................................ ..............................  23 
4.8.1    Business environment  ................................ ................................ ............................  24 
4.9   Regional Economic Integration  ................................ ................................ ...................  25 
4.9.1    Eurasian Economic Union  ................................ ................................ ........................  25 
4.9.2    Agreement on the CIS Free Trade Area  ................................ ................................ .... 25 
4.9.3    Free trade agreements  ................................ ................................ ...........................  26 
5   FURTHER DIRECTIONS OF TRADE POLICY OF THE KYRGYZ  REPUBLIC  .....................  27 
6   LIST OF ABBREVIATIONS  ................................ ................................ .........................  27 
 
  WT/TPR/G/411 • Kyrgyz Republic  
 
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  1  INTRODUCTION  
1.1.  The Kyrgyz  Republic  is a landlocked country for which trade and the rapid free movement of 
goods are vital for trade relations with other WTO Members , as well as for economic stability and 
prosperity. Geographically located in the middle of the continent and being landlocked , the 
Kyrgyz  Republic has no choice but to rely on overland trade routes without obstacles or barriers.  
1.2.  The Kyrgyz  Republic  has been a Member of the World Trade Organization  for more than 
20 years . During this period, the Kyrgyz  Republic  was the subject of  two WTO Trade Policy Reviews , 
in 2006 and 2013. This is the third Trade Policy Review of the Government of the Kyrgyz  Republic . 
The report includes information on economic development, achievements in trade policy for 
2013-2019, and future trends and dire ctions of economic development and trade policy priorities.  
1.3.  During this period, fundamental changes took place, both in the geographical distribution and 
the structure of trade, and in the foreign trade regime itself. Conducting an appropriate liberal trad e 
policy contributed to the development of the economic sector as a services sector ; in particular, the 
openness of the market and the liberal legal regime determined the development of foreign trade.  
1.4.  During the period under review, the main directions of the trade policy of the Kyrgyz economy 
were associated with further integration into the multilateral trading system with liberalization of the 
trade regime, in the context of both WTO commitments and the processes of regional economic 
integration.  
1.5.  Since 2 015, the main direction in the trade policy of the Kyrgyz  Republic  has been associated 
with the processes of regional economic integration within the framework of the Eurasian Economic 
Union (EAEU). As a result, in order to harmonize national legislation w ith EAEU law, a number of 
new regulatory and legal documents were adopted and amendments were made to existing ones.  
1.6.  Through participation in the regional integration processes, the Kyrgyz  Republic  demonstrates 
its commitment to preserving and strengthenin g the WTO's indispensable role as a primary platform 
for negotiations  and multilateral trade liberalization, and for the develop ment and enforc ement of  
the rules of the multilateral trading system.  
1.7.  The Kyrgyz  Republic  actively uses various ways of entering  the world market, especially 
through the development of foreign trade in the context of integration processes. In this regard, 
together with its integration partners, the Kyrgyz  Republic  is actively working on the creation of  free 
trade areas between the EAEU and third countries in order to develop commodity and geographical 
diversification of Kyrgyz exports.  
2  ECONOMIC POLICY  
2.1  Macroeconomic Situation  
2.1.  The socio -economic development of the Kyrgyz  Republic  in 2013 -2019 occurr ed in the context 
of a sharp decline of global oil price s, a crisis in the foreign exchange market due to the strengthening 
of the US dollar against other currencies, and other external factors, contributing to a trend of 
uneven economic growth of the country.  
2.2.  The macroeconomic policy of the Kyrgyz  Republic  has been developed in accordance with the 
National Strategy for Sustainable Development of the Kyrgyz Republic for the Period 2013 -20171, 
the National Development Strategy for 2018 -20402, and the Program for  the Transition of the 
Kyrgyz  Republic  to Sustainable Development (PTSD) for the Period 2013 -20173, which were aimed 
at: (i) ensuring macroeconomic stability; (ii) creating conditions for the growth of business activity 
and investment attractiveness of the main sectors of the economy; (iii) realiz ing foreign trade 
potential; (iv) develop ing foreign trade cooperation; (v) saving resource s and improving energy 
efficien cy; and (vi) encouraging regional development and digitalization of the national economy.  
 
1 Decree of the President of the Kyrgyz  Republic of 27 September 2013, No.  194. 
2 Decree of the President of the Kyrgyz  Republic of 31 October 2018, No.  221. 
3 Decree of the Government of the Kyrgyz  Republic of 30 April 2013, No.  218. WT/TPR/G/411 • Kyrgyz Republic  
 
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  2.3.  Particular attention was focused on the development of the mining, energy, tourism, 
agriculture, transport, and financial sector s, as well as business es based on new and environmentally 
friendly technologies.  
2.4.  During the period under review, slight fluctuations in the rates of economic growth were 
observed, although they had positive values. In 2013, gross domestic product ( GDP) grew by 10.9% 
(after a shar p decline in 2012 due to a n accident at Kumtor, the country's largest gold mining 
enterprise) , in 2014 by 4.0%, in 2015 by 3.9%, in 2016 by 4.3%, in 2017 by 4.7%, in 2018 by 
3.8%, and in 2019 by 4.6% .4 
2.5.  Nominal GDP in 2019 compared to 2013 increased by 66. 1% (KGS 355.3 billion) , and at the 
end of 2019 amounted to KGS 590 billion.  
2.6.  The m ain sectors of the economy contributing to GDP for the period 2013 -2019 were services, 
industry , and agriculture , which provid ed economic growth in the country. Their share of  the 
country's GDP production in 2019 amounted to 76.5%, decreasing by 2.7% compared to 2013.  
2.7.  The sector most vulnerable to impact of risks, including climatic , is agricultur e, whose share of 
GDP decreased by 2.9% over this period (from 14.6% in 2013 to 11 .7% in 2019). The share of the 
industrial sector decreased from 18.6% in 2013 to 17.9% in 2019, while the services sector 
increased from 46.6% in 2013 to 46.9% in 2019. Therefore, this sector of the economy had an 
impact on maintaining economic growth with  corresponding contributions to the real rate of GDP 
growth, although the deterioration of the terms of trade since joining the EAEU, together with other 
factors, caused a slowdown in growth dynamics in this area. The construction sector expanded 
noticeabl y from 6.3% in 2013 to 8.3% in 2019, mainly due to the accelerated pace of the 
contribution of housing and of facilities in energy and transport infrastructure.  
2.8.  During the period under review, there was an increase in household spending on final 
consumptio n, which was supported by an increase in consumer lending and wages, and a mainly 
positive contribution to the growth rate of the population's income was made by the volume of 
remittances of labo ur migrants (reaching in some years over 30% of the country's  GDP). The poverty 
rate fell from 37.0% in 2013 to 20.1% in 2019.  
2.9.  The main directions of macroeconomic policy are specified and concretized  annually,  taking 
into account the state of the economy , and reflected in joint statements of the Government and the 
National Bank of the Kyrgyz  Republic  (NBKR) . Issues of coordination of macroeconomic policy are 
considered by the Coordination Council for Macroeconomic and Investment Policy under the 
Government of the Kyrgyz  Republic . 
2.2  Monetary and Fiscal Policy  
2.10.   The monetary policy in 2013 -2019 led to the following results. There was a decrease in the 
weighted average interest rate, which in 2019 amounted to 17.5% in national currency and 9.7% in 
foreign currency.  
2.11.   During the entire reporting period, inflation dyna mics were generally moderately low. The 
only exception was in 2014, when the average annual consumer price index ( CPI) was 107.5% ( due 
to a decrease in agricultural production, an increase in import prices for grains and fuels and 
lubricants,  and an increa se in the US dollar exchange rate). In other years, this indicator ranged 
from 100.4% (2016) to 106.6% (2013); in 2019, the CPI was 101.1%.  
2.12.   Since 2015, according to experts, more than 70% of the inflation rate can be explained by 
non-monetary factors .   
2.13.   In general, the dynamics of  the inflation rate in the Kyrgyz  Republic  for the period 2013 -2019 
show the high sensitivity of the consumer market to world food and energy prices. The most sensitive 
 
4 Source: National Statistical Committee (NSC) of the Kyrgyz Republic (KR), "Kyrgyzstan in figures" for 
2013-2020.  WT/TPR/G/411 • Kyrgyz Republic  
 
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  markets in the country for responding to the rise in consumer prices were bakery and petroleum 
products.  
2.14.   From 2013 to 2019, the monetary policy of the NBKR was aimed at ensuring price stability in 
the country. Thanks to the implemented policy, it was possible to keep inflation within moderate 
limits. In 2013 -2019, the average annual inflation rate was kept at about 3.9%. Efforts of the NBKR 
were focused on improving the transmission mechanism of monetary policy through improving the 
efficiency and flexibility of monetary policy instruments. In general, after some tigh tening in 
2014-2015, the monetary conditions have tended to soften since 2016. The discount rate of the 
NBKR was significantly reduced. At the beginning of 2016 the discount rate was 10.0%, and then it 
gradually decreased to 5.0% at the beginning of 2018 . Since then, it has practically held at this level 
and was slightly adjusted to 4.25% in 2019. This was due to the need to maintain measures to 
stimulate economic growth in the country and promote a gradual decrease in market interest rates 
on loans for the  real sector of the economy.  
2.15.   In 2016 , all regulation in the budgetary sphere was consolidated into the Budget Code of the 
Kyrgyz  Republic5, which came into force on 1 January  2017. The budget system consists of the 
following:  the national budget; the budget of the Social Fund; the budget of the Mandatory Health 
Insurance Fund;  and local budgets.  
2.16.   National and local taxes were established in the Kyrgyz  Republic . The special (simplified) tax 
regimes were determined.  
2.17.   The largest tax burden falls on industry (18%), while for agriculture it is only 1.2%. This is 
due to the fact that this sector of the economy is subject only to land and property taxes. The 
services sector occupies the main share in structure of the count ry's GDP ; this sector also accounts 
for a significant share of tax revenues (12.2% ). 
2.18.   The country practices tax incentives that are provided to leasing companies, the banking 
sector, the construction sector, food and processing industries, exporters, the grain and flour import 
sector, agricultural processing, agricultural commodity and service cooperatives, private cardiac 
surgery medical institutions and preschool educational organizations, charitable organizations, 
societies of disabled people, institution s of the penal system, and credit unions .6 
2.19.   The conceptual basis of fiscal policy is formulated and implemented in the framework of the 
Fiscal Policy Concept in the Kyrgyz  Republic  for 2015 -20207, the main goals of which are improving 
investment climate; ensuring completeness of tax collection; moderniz ing tax and customs services; 
improv ing and automati ng the tax reporting system, by reducing the number of reports and 
streamlining frequency of their submission; identifying and minimizing factors leading t o emergence 
of systemic corruption, and revealing its real socio -economic grounds ; promoting a law -abiding 
lifestyle ; and implementing the State's anti -corruption policy in the fiscal sphere.  
2.3  Fiscal Policy and Development Issues  
2.20.   For the period 2013 -2019, the consolidated budget revenues of the Kyrgyz  Republic  (including 
the budget of the Social Fund and of the Mandatory Health Insurance Fund) increased by almost 
50%, while the consolidated budget deficit averaged 1.7% of GDP over the period, and in 2014 and  
2018 it was less than 1% of GDP. According to the preliminary results of 2019, the consolidated 
budget deficit amounted to 0.1% of GDP. The rise in budget contributions from the gross income of 
the Kumtor  mine and the annual increase in rates for alcohol and tobacco products as part of the 
harmonization of excise rates in the EAEU contributed to growth of budget revenues.  
2.21.   External debt grew from USD 3.2 billion in 2013 to over USD 3.8 billion , or 43.3% of GDP,  in 
2019. At the same time, the strong dependence of the State on foreign aid, which forms more than 
25% of budget revenues, as well as growth of the debt burden, increase s the risks in the sphere of 
ensuring the financial stability of the State. 
 
5 Budget Code of the Kyrgyz  Republic  of 16 May 2016 , No. 59 
6 Tax Code of the Kyrgyz  Republic  of 17 October 2008, No.  230. 
7 Decree of the Government of the Kyrgyz  Republic  of 7 July 2015 , No. 455. WT/TPR/G/411 • Kyrgyz Republic  
 
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  2.22.   Public expenditure policy of the Kyrgyz  Republic  in the period 2013 -2019 was aimed at full 
and timely financing of all social guarantees of the State and creating favo urable conditions for 
economic growth.  
2.23.   In order to effectively manage public finances of the Kyrgyz  Republic , the Strategy for the 
Development of Public Finance Management in the Kyrgyz  Republic  for 2017 -2025 was adopted .8 
2.24.   The Strategy is the first long -term strategic document defining further directions and priorities 
of the public finance management reform in the Kyrgyz  Republic  in 10 years, taking into account the 
recommendations of best practice s and the already existing results of the public finance 
management reform.  
2.25.   At the same time, the Strategy is not sufficiently implemented. Implementation of program me 
budgeting has slowed down. The program me classification needs improvement. Ministries and 
agencies noted the complexity of transition to new principles of budgeting and requested trainings 
and seminars on program me budgeting.  
2.26.   The problem of state budget subsidies in a number o f sectors has not been solved . These 
subsidies include : non -market -price subsidies for electricity and centralized heating; 
non-market -price subsidies for irrigation water supply; numerous tax incentives  (for example, VAT 
exemptions for the supply of miner al fertilizers ); and subsidizing the interest rate for agricultural 
producers within the framework of the government program me "Financing for Agriculture ", which 
has been implemented since 2013.  
2.27.   Further , the budgetary policy will include such areas as ensuring effective and transparent 
management of public finances by improving the regulatory legal framework; optimiz ing budgetary 
funds in the public and social sectors by increasing the efficiency of spend ing; reducing costs and 
strengthening targeting; improving the system of inter -budgetary relations; and activat ing the 
investment process through attracting investments, including on the basis of public -private 
partnership.  
3  SECTORAL POLICIES AND REFORMS  
3.1  Agriculture  
3.1.  Agriculture is one of the most important sectors of the economy . Its share in 2019 was equal 
to 11.7% of the country's GDP, a decreas e of 2.9% compared to 2013. But in the nominal value, 
the GDP of agriculture for the period under review has an u pward trend. In 2013 the gross 
agricultural output of the Republic was KGS 171.7 billion ; in 2019 it was KGS 221.0 billion, an 
increase  of 28.7%.  
3.2.  The overall growth rate of agriculture remains steadily on the whole lower than the rates of 
general economic growth in the period under review.  
3.3.  The share of people employed in the agricultural sector decreased from 31.7% in 2013 to 
18.1% in 2019, and the number fell from 716 ,700 people to 443 ,200 people.  
3.4.  The main socio -economic problem of the country is a steady trend of the income growth of the 
population employed in agriculture lagging behind the general level.  
3.5.  The main producers of agricultural products are private farms and personal farm households, 
producing  61.0% and 34.4% , respectively,  of the country's agr icultural products. The share of state 
farms is 1.9%. The industry is dominated by peasants and small farms , which due  to their size and 
fragmentation, are not so effective.  
3.6.  The main sectors of agricultural production in the Kyrgyz  Republic are livestock a nd crop 
production. The structure of the industry has not changed . In 2019, the share of crop production in 
total agricultural production accounted for 50.2% ; animal livestock , 47.1% ; forestry, hunting and 
 
8 Decree of the Government of the Kyrgyz  Republic of 22 December 2016, No.  696. WT/TPR/G/411 • Kyrgyz Republic  
 
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  fishing , 0.3% ; and agricultural services , 2.4% . In 2013, those percentages were  50.2% , 47.5% , 
0.2% , and 2.1% , respectively . 
3.7.  The agricultural complex does not ensure the country's food independence in all respects. The 
Kyrgyz  Republic  fully covers its needs only for vege tables, fruits and melons, and potatoes, which 
are also exported.  
3.8.  The export potential of the agricultural sector in total export volume is approximately 10% 
(about USD 190 million per year on average over the past five years). At the same time, crop 
produ ction plays a leading role (more than two thirds ). 
3.9.  The export potential of agriculture is not fully realized due to the small scale of farms and 
problems in organizing product marketing.  
3.10.   An existing tax policy, according to which a single farmer working in  the informal sector 
receives preferences in taxation and social insurance, is an obstacle to the enlargement of economic 
entities.  
3.11.   Lack of well -established market mechanisms and stable relations between the producers and 
processors of raw materials led to  a significant part of the industry's products being sold 
unprocessed.  
3.12.   State policy in the agricultural sector is characterized by low fiscal pressure from the State, 
as a result of a liberal policy of state regulation of the sector.  
3.13.   State support mechanis ms for the agricultural sector can be divided into two categories: 
general sectoral preferences and state support program mes. 
3.14.   Sectoral preferences may include favo urable tax administration. The agricultural sector is 
exempt from VAT and income tax. The lan d tax has not been increased for a long  time and does  not 
play a significant role in the budget at any level. The livestock tax is small as well .  
3.15.   State support is provided in the form of implementing regulatory functions (norms and rules 
on mineral fertilizers, animal and plant protection facilities, and policies regarding the use of 
resources , including  land and water) , and maintaining the necessary  institutional infrastructure.  
3.16.   During the period under review, program mes on supporting commodity producers by issuing 
commodity loans through the State Fund for Economic Development (SFED) under the Ministry of 
Finance of the Kyrgyz  Republic  were implemen ted, and the implementation of a number of 
program mes on improvement of financing of the agricultural sector , including the "Credits available 
to farmers "9 program me, was continued.  
3.17.   In 2013 the second phase of the support program me was launched, which sig nificantly 
expanded the base for the provision of credit through a new scheme of subsidizing the government 
interest rate to commercial banks issuing loans to farmers. The interest rate for crops and livestock 
production was defined at the level of 10%, and 9% for processors and seed farms.  
3.18.   Agricultural mechanization was supported by the State, mainly through grants.  
3.19.   The PTSD for the Period of 2013-2017 contained financing of the irrigation system as a priority 
area aimed at raising land irrigation in a number of regions to expand areas of irrigated arable land.  
3.20.   The Concept for Development of the Agricultural Cooperative System in the Kyrgyz  Republic  
for 2017 -2021 is being implemented10, which provides solution s to problems of developing 
agricultural cooperatives and is intended to create necessary conditions for resolving financial and 
economic problems.  
 
9 The "Credits available to farmers" programme of preferential loans to farmers under the Agricultural 
Financing Program  provided more than KGS 18.3 billion in 2011 -2016.  
10 Decree of the Government of the Kyrgyz  Republic of 21 April 2017, No.  237.  WT/TPR/G/411 • Kyrgyz Republic  
 
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  3.21.   In the future, in order to resolve current problems, the creation of agro -industrial clusters is 
envisaged in agricultural pr oduction.  
3.22.   The priority direction of the Government's policy in agriculture will be state support for 
production and processing of agricultural products that are labour -intensive but create high 
value -added. The target guidelines for development of the indu stry will be the growth of production 
volumes and efficiency, overcoming small -scale commodities, improving the quality of agricultural 
products, ensuring the country's food security, and building the potential of the processing industry.  
3.2  Industry  
3.23.   The ong oing reforms in the economy in accordance with the PTSD for 2013 -2017, aimed at 
optimizing tax administration, adopting tax incentives, providing state support to exporters, creating 
quality infrastructure for industrial products, and reducing barriers to trade, contributed to the 
improve ment of  development indicators in industry.  
3.24.   For 2013 -2019, the industry was characterized by positive growth rates . On average , its share 
in the structure of the country's GDP was about 18%, and nominal expression for the p eriod under 
review increased by 69% from KGS 169.8 billion to KGS 284.0 billion. At the same time, this sector 
provide d about 18% of tax revenues to the state budget and about 80% of the country's export 
supplies.  
3.25.   The main volume of industrial products (up  to 90%) is produced by six key industries: 
(i) production of basic metals and finished metal products, except for machinery and equipment; 
(ii) production of food (including drinks) and tobacco products; (iii) production of coke and refined 
petroleum prod ucts; (iv) production of rubber and plastic products, and other non -metallic mineral 
products (construction materials); (v) textile production, production of clothing and footwear, 
leather and other leather products; and (vi)  provision of electricity, etc.  
3.26.   The n umber of employees in industry amounted to 137 ,600 people  in 2013 , and 
344,000 people in 2019, or about 5.8% and 14.4% , respectively, of the total number of working 
individuals.  
3.27.   The competitive advantages for development of industry in the Kyrgyz  Republic  are such 
factors as the existing educational base, the relatively low cost of production factors , and the 
moderate inflation level. Due to the low level of the population's incom e, the Kyrgyz  Republic has 
comparative advantages for the development of labo ur-intensive industries.  
3.28.   At the same time, in order to provide state support to small enterprises under the 
implementation of the Program of  the Government of the Kyrgyz  Republic  "Zhany doorgo kyrk 
kadam "11, the "Microfinance of small -sized enterprises in the Kyrgyz  Republic " programme was 
approved, which recognized the garment and textile industry was one of the priority sectors.  
3.29.   One of the priority areas was to increase the expor t potential of the manufacturing industry. 
To further promote export s of the garment industry, the Government of the Kyrgyz  Republic  
intended to create a Technopolis.  
3.30.   Increasing the export potential was planned through : (i) the creation of a logistics centre in 
a Technopolis, both for the supply of finished products and for the import of raw materials; (ii) the 
development of the Strategy for promotion and protection of the brand "Made in Kyrgyzstan "; and 
(iii) the creation of a  flexible policy of differentiated customs payments with respect to raw materials 
and finished products.  
3.31.   The source of funding for the program me was the funds of the Russian -Kyrgyz Development 
Fund. According to this program me, business entities implementi ng a cluster production system and 
participating in a value chain of operating clusters in priority sectors of the economy were  given  
priority  for credit . The marginal interest rate for small businesses was not more than 14%.  
 
11 Decree of the Government of the Kyrgyz  Republic dated  28 December 2017, No.  593-r. WT/TPR/G/411 • Kyrgyz Republic  
 
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  3.32.   In priority sectors, the suppo rt measures take into account the integration capacities of the 
EAEU, including industrial cooperation and involvement in common production chains. An additional 
aspect of the policy to support industrial development will be expanding cooperation with larg e 
international industrial companies for launching new industries.  
3.2.1   Mining industry  
3.33.   In terms of geolog y, the Kyrgyz  Republic  is characterized by a very complex structure. Many 
types of sedimentary, igneous and metamorphic rocks were created under different geodynamic 
conditions. More than 10 ,000 deposits of ore, energy , and non -metallic minerals have been 
discovered in the Kyrgyz  Republic . The registered reserves of minerals include primary and placer 
gold reserves in 107 deposits amount ing to 654.2 ton nes as of 1 January 2019; silver reserves in 
23 deposits amount ing to 257.2 ton nes as of 2019; and coal reserves in 45 deposits amount ing to 
1.5 billion  tonnes12 as of 1 January 2019.  
3.34.   Currently one large gold mine (Kumtor) , located in the east of the country , accounts for almost 
40% of total industrial production.  
3.35.   The mining company is the largest taxpayer and private sector employer in the 
Kyrgyz  Republic. The Government receives about 20% of its revenue from the Kumtor mi ne. Gold 
export s, of which almost 98% comes from Kumtor, represent about 35% on average of Kyrgyz 
merchandise exports in recent years. Its dependency on a single source of income poses a significant 
risk for the Kyrgyz  Republic , works are being carried out  towards launching and developing other 
deposits.  
3.36.   The sector is regulated by such special laws as the L aws "On Subsoil "13, "On Coal "14, "On 
Subsoil and Gas "15, and "On Concessions ".16 On 19 May 2018, a new version of the Law of the 
Kyrgyz  Republic "On Sub soil" was adopted.  
3.37.   The National Development Strategy  of the Kyrgyz  Republic  for 2018 -2040 and the Program 
of the Government of the Kyrgyz  Republic and the Concept for the Development of Regional Policy 
of the Kyrgyz  Republic for 2018 -202217 emphasize the need to improve the efficiency of mining 
operations and introduce modern technologies with a minimum impact on the environment.  
3.38.   The Law of the Kyrgyz  Republic "On Subso il" of 2018 introduced a "social package " as a tool 
for establishing rel ationships between the local population and subsoil users and is aimed at reducing 
the opposition of the local population towards mining. The obligation to draw up a social package 
applies only to subsoil objects of national importance that are at the stag e of exploration and 
operati on. 
3.3  Energy  
3.39.   The Kyrgyz  Republic  is an energy -deficient country . Its own energy resources cover 51% of 
its needs , mainly from electricity generated at hydroelectric power plants; the rest is covered by 
energy imports from neighbou ring countries.  
3.40.   The country's hydropower resources are estimated at 142.5 billion kWh, of which 42% is 
economically profitable, and only about 10% of which is economically exploited . In the 
Commonwealth of Independent States ( CIS) rating, the Kyrgyz  Republ ic ranks third in terms of 
hydropower potential.  
 
12 Source: State Committee for Industry, En ergy and Subsoil Use of the Kyrgyz  Republic.  
13 Law of the Kyrgyz  Republic "On Subsoil" dated 19 May 2018, No.  49 (as of 23 March 2020, No.  29). 
14 Law of the Kyrgyz  Republic "On Coal" dated 3 February 1999, No.  18 (as of 18 July 2014, No.  144).  
15 Law of the  Kyrgyz  Republic "On Subso il and Gas" dated 8 June 1998, No.  77 (as of 
20 November  2015, No.  19). 
16 Law of the Kyrgyz  Republic "On Concessions and Concession Enterprises in the Kyrgyz  Republic" 
dated 6  March 1992, No.  850-XII (as of 30 July 2013, No.  178).  
17 Decree of the Government of the Kyrgyz  Republic "On Approval of the Concept for Development of 
Regional Policy of the Kyrgyz  Republic" for the period of 2018 -2022 of 31 March 2017, No.  194. WT/TPR/G/411 • Kyrgyz Republic  
 
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  3.41.   The Kyrgyz  Republic  has a high potential for renewable energy sources  (RESs) , which is 
estimated at 840.2 million ton nes of fuel equivalent per year. The main types of RESs in the 
Kyrgyz  Republic are solar energy, energy from small rivers and streams, wind energy, energy from 
geothermal waters , and energy from biomass.  
3.42.   To date, the State Balance of Mineral Resources in the territory of the Republic includes 
45 coal deposits with reserves of 1 .535 billi on ton nes, including brown coal (1.083 billion ton nes), 
bituminous coal (327.8 million ton nes), and coking coal (120.896 million ton nes). The volume of 
coal production is about 1.8 million ton nes, and the volume of import s is about 1 million ton nes.  
3.43.   The industrial reserves of oil and gas are small . Oil reserves  amount to 88.34 million ton nes; 
extractable o res, 10.356 million ton nes; and natural gas , 3,995.4 million m3. The reserves are 
concentrated in the south of the country in 11 deposits, and they provide the country with less than 
5% of its needs . Oil production is 85,000 tonnes, and import s are 600,000 tonnes. Import s of natural 
gas are 400 million m3. Gas is imported by Gazprom, a Russian company , which also transports, 
distributes , and sells gas in the Kyrgyz  Republic . Gazprom acquired the only national distributor , 
Kyrgyzgaz , in 2014.  
3.44.   More than 3.1 million giga -calories of thermal energy are produced in the Republic annually. 
Electric boilers are quite important in the production of thermal energy.  
3.45.   Electricity generation and transmission accounts for more than 3% of GDP, which is about 
15% of industrial production and more than 5% of government revenues.  
3.46.   More than 90% of domestic demand for electricity is satisfied by hydroelectric power plants. 
To date, the electricity is generated by 19 hydroelectric power stations and 2 thermal power stations, 
the total capacity of which is 3 ,788 MW. The total volume of electricity production fo r 2013 -2019 
was 13 -15 billion kW per year.  
3.47.   During the years of market reform, the consumption of electricity by the population increased 
3.3 times (due to affordability), while the consumption of coal decreased almost 3 times, 
gas 4 times, and heating oil 16 times.  
3.48.   The Kyrgyz  Republic  was a net exporter of electricity to neighbo uring countries, but in 
2014-2016 the shortage of electricity consumption in winter was covered by imports. Since 2017, 
electricity exports have exceeded imports.  
3.49.   The main proble ms of the energy sector for the period under review were natural and climatic 
(such as the dependence of energy supply on the water level in the Naryn river and water 
accumulation in Toktogul reservoir ); the threat to energy security due to a shortage of e nergy 
capacity ; the failure to meet the growing needs of the economy and population in fuel and energy 
resources ; and global trends in the price of fuel and energy resources.  
3.50.   Problems in technical and technological spheres caused  high losses of electricity  and 
deterioration of energy equipment, a lag in the development of innovative technologies, a high level 
of GDP energy and carbon intensity , and an absence of long -term energy -saving policy. In the 
economic sphere, these were energy tariffs failing to cov er the costs of energy companies and the 
lack of energy companies' own funds for development and modernization.  
3.51.   The action plan on reforming the energy sector was implemented in 2013 and 2014 , which  
resulted in amendments to the Law of the Kyrgyz  Republic  "On Electricity "18 approval of the 
Medium -term Tariff Policy of the Kyrgyz Republic on electricity and thermal energy  for 2014 -201719, 
and establishing a regulating body for tariff setting and licensing.  
3.52.   In February 2016 , the JSC National Energy Holding C ompany was established with 100% 
state ownership. Subsequently, through the adoption of the Laws of the Kyrgyz  Republic  "On Special 
 
18 Law of the Kyrgyz  Republic "On Electricity" dated 28 January 1997, No.  8 (as of 24 July 2019, 
No. 99). 
19 Decree of the Government of the Kyrgyz  Republic "On Approval of the Medium -term Tariff Policy of 
the Kyrgyz  Republic for Electric and Thermal Energy for 2014 -2017" dated 20 November 2014, No.  660. WT/TPR/G/411 • Kyrgyz Republic  
 
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  Status of Toktogul Cascade of Hydroelectric Power Plants and the National High-Voltage Power Line", 
"On Strategic Objects of the Kyrgyz  Republic ", and "On Privatization of State Property ", the energy 
assets were included into the privatization program of the state property of the Kyrgyz Republic for  
2015-2017.  
3.53.   Though the fuel and energy complex of the Kyrgyz  Republic  is regulated by a number of 
legislative and regulatory legal acts  (RLAs) , implementation of the adopted laws, strategies, 
program mes, and other governmental documents was not sufficiently carried out.  
3.54.   In the future , the sustainable and reliable supply of  heat and heat energy in the Republic will 
be carried out, first of all, through the development of the coal industry and gas supply. The 
development of the coal industry is expected through technical re -equipment, modernization of 
existing coal enterprise s, and the development of new deposits. In accordance with the general 
scheme of gas supply and gasification of settlements, the increase in gas supplies will be carried out 
through the import of natural gas.  
3.55.   To increase the share of energy from renewable  sources in the country's energy balance, it 
will be necessary to create a mechanism for the practical implementation of these technologies and 
to carry out work to attract financial resources for the implementation of projects on RESs, including 
investments.  
3.4  Tourism  
3.56.   The Kyrgyz  Republic  has a high touristic potential. The gross value added in the tourism sector 
in 2019 amounted to more than KGS 30 billion, and reached 4.9% of GDP, compared with 4.6% in 
2013. The number of people employed in this ar ea increased by 9.7% from 2013 to 2019 , from 
8,137 to 8 ,931 people.  
3.57.   The number of visits by tourists also has an upward trend . During the period under review , it 
increased by 29.4% from 1 .38 million  to 1.78 million people. The increase in the influx of for eign 
tourists was facilitated by the introduc tion of a visa-free regime for 44 countries  in mid-2012. In 
2016, the Kyrgyz  Republic  became one of the leader s in the ranking of the UN World Tourism 
Organization  (UNWTO) . 
3.58.   The development of tourism in the Kyrgyz Republic  is hampered by limited air access to many 
destinations, high transport costs for foreign tourists, and poor road conditions.  
3.59.   Also, the development of the industry is hindered by facilities providing services that do not 
meet the requirements of  international quality, safety , and environmental standards.  
3.60.   An important problem is incomplete and inaccurate registration of arriving foreign tourists. 
The existing system for registering the arrivals of foreign tourists does not reflect a complete and 
objective picture of the tourist flow to the Kyrgyz  Republic  and the impact of tourist expenses on the 
economy of the Republic. In addition, almost all of the money turnover in the tourism sector occurs 
in cash, which does not allow an assess ment of the actual picture.  
3.61.   To improve the quality of tourist services and t he safety of tourists, the following measures 
are envisaged: (i) the introduction of a mechanism of economic responsibility of tour operators and 
travel agencies in order to protect the rights of tourists ; (ii) the creation of a specialized tourist 
rescue service ; (iii) the improvement of the current professional standards of the main professions 
of workers in the tourism industry ; (iv) the elaboration and implementation of training program mes 
that meet the needs of the modern tourism industry ; and (iv) support for advanced applied research 
in the field of tourism.  
3.62.   The country's medium -term policy is aimed at increasing the efficiency of state regulation of 
the development of the tourism industry and promoting the improvement of quality and variety of 
tourism services and products.  WT/TPR/G/411 • Kyrgyz Republic  
 
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  3.63.   The main directions of tourism development in the Kyrgyz  Republic  were determined  in the 
Program of the Government of the Kyrgyz  Republic  for the Development of Tourism until 202020, 
adopted in 2016.  
3.64.   Recognizing that the tourism sector is one of the priority and export -oriented sectors of the 
economy of the Kyrgyz  Republic , a new Program of the Government of the Kyrgyz Republic for the 
Development of the Tourism Sector for 2019 -202321 was adopted in 2019. The Action Plan r eflects 
modern global trends in tourism and pays great attention to the socio -economic development of the 
country's regions.  
3.5  Information and Communication Technologies  
3.65.   The widespread introduction of information technologies in production and management is  a 
priority of the country's development policy.  
3.66.   In 2017, the Kyrgyz  Republic  became the first country in Central Asia to join the international 
Open Government Partnership (OGP) program me. It aims to fulfil the commitments of the 
governments of the partic ipating countries to ensure transparency in governance, empower citizens, 
fight corruption , and use new technologies.  
3.67.   In 2017, the "Taza Koom " digital transformation program me was presented in the 
Kyrgyz  Republic22, which systematizes the previously comple ted work in the direction of the digital 
economy.  
3.68.   The "Taza Koom "23 program me is part of the National Development Strategy of the 
Kyrgyz  Republic for 2018 -2040. The medium -term objectives of the program me are to shift 
186 public services to an online format. The program me is aimed at achieving goals related to the 
formation of digital infrastructure, creating a favo urable environment , and increasing the efficiency 
of government agencies.  
3.69.   Under the program me, citizens of the  Kyrgyz  Republic  can obtain electronic biometrical 
passports.  
3.70.   In the spring of 2018, a system of interdepartmental electronic interaction called "Tunduk "24, 
which was  designed to increase the efficiency of management in government bodies by ensuring the 
prompt receipt of data necessary for the provision of public services , was introduced.  
3.71.   At the end of 2019, 62 government agencies and 28 commercial organizations were connected 
to the "Tunduk " system.  
3.72.   At present, 40 government agencies exchange data through "Tunduk "; 438 services were 
developed for data transmission ; and 99 databases were implemented in 26 state bodies.  
3.73.   The Plan for automation of requested and issued certificates by the state bodies was 
developed. In 2019, the issuance of 13 certificates was automated ( including those on the citizenship 
of the Kyrgyz  Republic , on the registration address, on the registration of taxpayers, on debts, on 
the availability of property, on the availability of a pension and insurance premiums, and on 
trademarks).  
 
20 Decree of the  Government of the Kyrgyz  Republic "Program of the Government of the Kyrgyz  Republic 
for the Development of Tourism until 2020" dated 11 April 2016, No.  192.  
21 Decree of the Government of the Kyrgyz  Republic "Program of the Government of the Kyrgyz  Republi c 
for the Development of the Tourism Sector for 2019 -2023" dated 31 January 2019, No.  36. 
22 Viewed at: http://tazakoom.kg . 
23 Decree of the Government of the Kyrgyz  Republic "On the Council for Electronic Governance and 
Development of Information and Communication Technologies ('Taza Koom') under the Government of the 
Kyrgyz  Republic" of 19 May 2017, No.  297 (as amended by Decre e of the Government of the Kyrgyz  Republic of 
28 March  2018, No.  159).  
24 Decree of the Government of the Kyrgyz  Republic "On Approval of the Requirements for the 
Interaction of Information Systems in the System of Interdepartmental Electronic Interaction ' Tunduk'" of 
11 April 2018, No.  200. WT/TPR/G/411 • Kyrgyz Republic  
 
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  3.74.   In March 2019 , the "Safe City " system for preventing and fixing traffic violations, aimed at 
round -the-clock recording of the movement of motor vehicles  and the  prevention and disclosure of 
crimes, including those related to the use of vehicle, was launched on the streets of Bishkek ci ty and 
highways of international importance in the Chu i region. As part of the implementation of the first 
stage of the "Safe City " project, several types of cameras with different functionalities were installed 
at 110 sites in Bishkek city and Chu i region   
3.75.   The National Digital Transformation Program "Taza Koom " (renamed as 
"Sanarip  Kyrgyzstan ") is the main reference point for accounting of technological measurement as 
a cross -cutting parameter.  
3.76.   The concept of digital transformation "Sanarip Kyrgyzstan " ("Digital Kyrgyzstan ") for 
2019-2023, approved by the Decision of the Security Council of the Kyrgyz  Republic  dated 
14 December 2018 , No. 2, defines the country's medium -term priorities in the field of digital 
transformation in accordance with Strategy 2040 a nd sets the following priority objectives: creating 
new opportunities for the population through the development of digital skills; providing high -quality 
digital services ; increasing the efficiency, openness, and accountability of the public administratio n 
system ; increasing the level of citizen involvement in processes of state and municipal 
decision -taking through the digital transformation of the public and municipal administration system; 
ensuring economic growth through the digital transformation of p riority sectors of the economy ; 
strengthening international partnerships ; and creating new economic clusters.  
3.77.   Information systems and databases were introduced to minimize corruption risks, reduce time 
for servicing a population, speed up and simplify the procedures for receiving any relevant 
information on public services, and allow for making non -cash settlement when paying for public 
services and fines for violation of traffic rules under the "Safe City " project.  
3.78.   It should also be noted that the use of information systems in the population census will 
provide precise information about residential and non -residential premises, determine the exact 
population size in order to calculate the correct volume of GDP per capita , and ensur e a gradual shift 
from hard -copy to electronic documentation that will contribute significantly to preserving the 
environment . 
3.79.   In accordance with Section V of Strategy 2040 , the "Priority Development Directions of the 
Kyrgyz Republic until 2023 ", digital t echnologies will be introduced as a priority in such areas as 
education, healthcare, tourism, agriculture, telecommunications, banking, light industry , and 
construction.  
4  TRADE POLICY  
4.1  Trade in Goods  
4.1.  The foreign trade of the Kyrgyz  Republic  is characterized by  a long-lasting surplus of import s 
that leads to serious macroeconomic consequences. This situation led to an excess of foreign trade 
turnover over GDP, before 2015.  
4.2.  The growth rates of foreign trade of the Kyrgyz  Republic  for 2013 -2019 are negative ; foreign 
trade turnover during this period fell by 12.7%, from USD 7.993 billion to USD 6.975 billion .25 
Exports in 2019 amounted to USD 1.986 billion and compared to 2013 decreased by 1%, so the 
imports amounted to USD 4.989 billion and decreased by 16.7%.  
4.3.  In 2015 when the Kyrgyz  Republic  joined the EAEU, the foreign trade turnover decreased to 
USD 5.636 billion , but in 2016 it reached a low of USD 5.573 billion.  
4.4.  The reasons for negative  dynamics of foreign trade turnover were the decline in oil import 
prices, which caused a slowdown in economic growth in EAEU countries, a decrease in re -exports 
from the Republic due to the introduction of new rules, the inability of Kyrgyz producers to m eet the 
 
25 Source: NSC KR, "Foreign Trade of the Kyrgyz  Republic" for 2013 -2020.  WT/TPR/G/411 • Kyrgyz Republic  
 
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  technical and phytosanitary requirements of the EAEU, and periodical problems of border control at 
checkpoints between the Kyrgyz  Republic  and Kazakhstan.  
4.5.  Since 2017, there has been a moderate recovery in the country's foreign trade ; a positive fac t 
was the increase in the share of exports in the structure of foreign trade turnover and a slight 
decrease in the trade deficit. In the structure of trade, the share of export s in 2019 accounted for 
28.5%, and import s for 71.5% ; in 2013 those percentages  were 25.1% and 74.9% , respectively. 
The trade deficit in 2013 was USD 3.98 billion , up from USD 3.002 billion in 2019.  
4.6.  The Kyrgyz  Republic  carries out export deliveries with more than 130 countries both far and 
near. At the same time, the main role in the formation of export markets for the period under review 
is played by nine countries: Switzerland, Kazakhstan, the Russia n Federation , Uzbe kistan, Turkey, 
China, the United Arab Emirates, Tajikistan , and the United Kingdom . Supplies of products from 
Kyrgyz enterprises to these countries accounted for more than 90% of total export s. 
4.7.  During the period under review, the main export item s of the Republic remained gold (its share 
remained more than one third of total export volume ; in the last two years it was less than half), 
agricultural products (cotton fibre, leather raw materials, tobacco, vegetables and fruits, nuts, and 
honey), electricity, mineral ores, clothing and accessories, and footwear, which make up almost 70% 
of the total export supplies.  
4.8.  The supply of electricity, cotton fibre, and tobacco over the period under review has a 
downward trend and currently accounts for only about 1 %-2% of total export s, while supplies of 
dairy products, knitwear and textile clothing, and mineral ore are growing.  
4.9.  In the geographical structure of imports, the Russia n Federation , China, Kazakhstan, 
Uzbekistan, Turkey, and Germany remain as traditional sup pliers of imported products. Their share 
in the total imports of the country was 50.1% in 2019 and 75.5% in 2013.  
4.10.   Apart from fuel and energy resources, the main import items are machinery and equipment, 
means of transport, clothing and footwear, fabrics a nd threads, pharmaceutical products, and rolled 
ferrous metals and their products.  
4.11.   In order to expand export opportunities and increase the competitiveness of domestic 
producers in external market s, the Plan of the Government of the Kyrgyz  Republic  on Expo rt 
Development of the Kyrgyz  Republic  for 2015 -2017 was adopted .26 The Plan identifie d six priority 
sectors: tourism ; textile and clothing ; meat; fruit and vegetable s; milk and dairy products ; and 
bottled water.  
4.12.   The objectives of the Plan were addressed within four areas: access to trade information and 
export promotion; simplification of trade procedures; support and development of quality 
infrastructure;  and access to financial resources.  
4.13.   In 2018, the Government  of the Kyrgyz  Republic  adopted the Export Development Program 
for 2019 -2022 and an Action Plan for its implementation. The program me focuses on the 
development of four sectors (garment, dairy, fruit and vegetable processing, and green and 
innovative instr ument engineering) and three cross -sectoral areas (quality infrastructure, access to 
finance , and export promotion).  
4.14.   The relations of the Kyrgyz  Republic  with foreign states in the field of foreign trade activities 
are built on the basis of compliance with  obligations arising from international treaties of the 
Kyrgyz  Republic.  
4.15.   Since the entry into force of the Treaty on the Accession of the Kyrgyz  Republic  to the Treaty 
on the EAEU, the national legislation was brought in line with the Treaty on the EAEU .27 
 
26 Decree of the Government of the Kyrgyz  Republic of 31 March 2015, No.  174. 
27 Thirty -nine laws of the Kyrgyz  Republic and 51 decisions of the Government of the Kyrgyz  Republic 
were adopted.  WT/TPR/G/411 • Kyrgyz Republic  
 
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  4.2  Trade in Services  
4.16.   The services sector occupies the main share in structure of the country's GDP ; in 2013 it 
amounted to 46. 5%, and in  2019 46.9%. A foreign trade turnover in services in kind in 2019 
amounted to USD 2.103 billion ; in 2013 it was USD 2.192 billion , a decreas e of 4.2%. At the same 
time, the balance of international services was negative, except in 2019, which amounted to 
USD 61.9 million .28 
4.17.   A significant item in the total volume of services is represented by services in the field of 
tourism and travel, which in 2019 accounted for 49.2% or USD 1.034 billion, the volume of which 
increased by 12.5% compared to 2013.  
4.18.   The second important export item is transport services, the share of which in the total volume 
of services in 2019 amounted to 3 4.5% or USD 725.0 million.  
4.19.   Compared to 2013, the volume of transport services in 2019 decreased by USD 1.4 million, 
which was due to a decrease in the country's foreign trade turnover. In addition, in the field of 
transport services, there has been a slowd own in freight turnover in railway transport since 2012 
and a decrease in this indicator in 2015 -2016 by about 12%, which was related to the introduction 
and operation of a unified tariff for railroad transportation of goods between the Kyrgyz  Republic  
and Kazakhstan and the small -scale nature of merchandise export.  
4.20.   The next sector in order of importance is telecommunications, computer and information 
services, the share of which in 2019 amounted to 1.8% ; compared with 2013 , the share  decreased 
by 0.2%, and  the volume of this service decreased by 13.2%. Due to the global trend of replacing 
traditional communication services, users of communication services are switching to data 
transmission through various Internet applications.  
4.21.   Employment in the services se ctor for the period under review ha d an upward trend . In 2013 
it employed 47.2%, and in 2019 almost 55% of the working -age population , or 1.068 million people 
in 2013 and 1 .343 million people in 2019, indicat ing that the service s sector remains the largest  
source of employment in  the Kyrgyz  Republic . 
4.22.   The tax revenues from this sector also comprise a significant share of  total tax revenues, but 
the tax burden in this sector is significantly lower than the tax burden of the industry sector and is 
only about 12.2%.  
4.23.   The main trade partners of the Kyrgyz  Republic  in the services sector are Kazakhstan and the 
Russia n Federation , and in recent years Tajikistan and Uzbekistan. Most of the services export s of 
the Kyrgyz  Republic  go to the EAEU countries, which are distinguished by a high degree of integration 
and few restrictions applied to services.  
4.24.   The export of services, in contrast to the export of goods, is not so vulnerable in terms of 
logistical issues, requirements for quality of goods, phytosanitary and other border controls, and 
political measures. All of these advantages give reason to predict in the near future the leadership  
of the services industry in international trade due to the development of tourism and transport 
services.  
4.3  Customs Regulation  
4.25.   Since the accession of  the Kyrgyz  Republic  to the EAEU  in 2015 , the customs, tariff , and 
non-tariff regulation has been carried ou t in accordance with the legal framework of the EAEU.  
4.26.   The legal basis for customs -tariff regulation in the Kyrgyz  Republic  is the Treaty on the EAEU 
dated 29 May 2014, the Customs Code of the EAEU , and the Law of the Kyrgyz  Republic  "On the 
Customs Regulation " dated 24 April 2019 , No. 52.  
4.27.   As a member of the EAEU, the Kyrgyz  Republic  applies the Commodity Nomenclature of 
Foreign Economic Activity (CN FEA) of the EAEU and the rates of the Common Customs Tariff of the 
 
28 Source: NSC KR.  WT/TPR/G/411 • Kyrgyz Republic  
 
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  EAEU (CCT EAEU), except for 166 co mmodity subheadings, in respect of which reduced customs 
duty rates were applied (transition period expired on 31 December 2020).  
4.28.   Before accession of the Kyrgyz  Republic  to the EAEU, the applied average import customs 
tariff was in the range 5.0 %-5.2% , while the level of bound customs tariff was under 7.4%. After 
the country's accession to the EAEU, the customs tariff increased to 9.4%. As of the end of 2020, 
the applied customs  tariff level was 6.7%.  
4.29.   Since joining the EAEU, the Kyrgyz  Republic  has impleme nted tariff quotas on the import of 
certain agricultural products.  
4.30.   Until 2020, it was allowed to import into the Kyrgyz  Republic  raw cane sugar of sub -items for 
industrial processing with exemption from import customs duties in the amount of not more than  
100,000 ton nes per year.  
4.31.   Preferences for payment of import customs duties were also introduced to six important 
infrastructure projects within the framework of international treaties of the Kyrgyz  Republic  signed 
before 1 April 2015, prior to the terminat ion of these international treaties.  
4.32.   Until 31 December 2022, the Kyrgyz  Republic  has been granted an exemption from import 
customs duty in respect of military products imported into its territory to satisfy the needs of the 
Armed Forces of the Kyrgyz  Repub lic, the analogues of which were not produced in the EAEU, as 
well as certain types of civil helicopters and civil passenger and cargo aircrafts.  
4.33.   The legal framework of the EAEU envisages the provision of tariff preferences in relation to 
certain commodity  items, the conditions for the provision of which are regulated by decisions of the 
bodies of the Eurasian Economic Commission  (EEC) . 
4.34.   The Kyrgyz  Republic  applies the Unified System of Tariff Preferences for the import of goods 
from developing and least dev eloped countries.  
4.35.   In view of the accession of the Kyrgyz  Republic  to the EAEU, in accordance with the provisions 
fixed in the Protocol on negotiations with WTO Members to modify tariff commitments taken earlier 
by the Kyrgyz  Republic29, compensatory negoti ations are underway.  
4.3.1   Trade facilitation  
4.36.   The Kyrgyz  Republic  joined the Trade Facilitation Agreement (TFA) in November 2016 .30 
Notifications for Category A, B , and C commitments have been submitted. The National Trade 
Facilitation Council was established .31 The Plan for implementation of the TFA was developed. The 
Plan identified priority areas such as access to information, indicators at the border, transit , and 
export.  
4.37.   In order to increase the effectiveness of work at customs checkpoints, modern inspection 
complexes have been installed.  
4.38.   A "Single Window Information System ", the TULPAR -SYSTEM , was launched, to which more 
than 30 government agencies have been connected . The total number of platform users was over 
35,000 in 2019.  
4.39.   Since 2016 , the provision of preliminary information on goods imported into the customs 
territory by road has been mandatory in the Kyrgyz  Republic . A preliminary information procedure 
 
29 Paragraph 41 of the Annex to the "Protocol on the Conditions and Transitional Provisions for the 
Application by the Kyrgyz  Republic of the Treaty on the Eurasian Economic Union of 29 May 2014".  
30 Law of the Kyrgyz  Republic "On Ratification of the Protocol on Amendments to the Marrakesh 
Agreement estab lishing the World Trade Organization, adopted on 27 November 2014 in Geneva" was adopted 
on 22 November 2016, No.  183. 
31 Decree of the Government of the Kyrgyz  Republic " On Trade Facilitation Council in the 
Kyrgyz  Republic" of 18 July 2017, No.  435. WT/TPR/G/411 • Kyrgyz Republic  
 
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  is carried out at the external checkpoints of the Kyrgyz  Republic  (at its border s with China, 
Uzbekistan , and Tajikistan).  
4.40.   The movement of goods from EAEU member States was simplified; the procedure for 
inspection and registration of goods imported from EA EU member States was excluded. All customs 
procedures  and sanitary and phytosanitary (SPS) controls were terminated on the Kyrgy z-Kazakh 
border.  
4.41.   At present, the conditions for transit through the territory of the Kyrgyz  Republic  correspond 
to the overwhelming majority of the provisions of Article  11 "Freedom of Transit " of the TFA.  
4.42.   From the moment of the accession of the Kyrgyz  Republic  to the EAEU, the procedure of 
taking preliminary decisions on classification of goods in accor dance with the EAEU Commodity 
Nomenclature was applied. It is planned to consider the possibility of issuing preliminary decisions 
on determination of the customs value and the country of origin.  
4.43.   According to the Customs Code of the EAEU, the institution o f an authorized economic 
operator , which has a positive impact on the process of simplifying international trade and transit , 
was introduced.  
4.44.   By decision of the Government of the Kyrgyz  Republic , the list of perishable products , in 
respect of which permits are issued on a priority basis when imported into the Kyrgyz  Republic , was 
approved.  
4.45.   Further , it was planned to develop and implement an interdepartmental system of veterinary, 
phytosanitary , and sanitary risk management and no tification to strengthen control and inspections.  
4.46.   Work on the introduction of a national tracking system for goods subject to 
sanitary -epidemiological and veterinary control (surveillance) is underway ( unified automated 
control system  (UACS) ). 
4.4  Non-Tariff Regulation  
4.47.   Before joining the EAEU, the application of safeguard, anti -dumping , and countervailing 
measures in the territory of the Kyrgyz  Republic  in relation to third countries was regulated by 
national legislation.  
4.48.   In order to protect the interests of the domestic flour -grinding industry, by the Decree of the 
Government of the Kyrgyz  Republic  dated 4 March 2014 , No. 119, a special safeguard duty was 
introduced on the import of wheat flour into the territory of the Kyrgyz  Republic  at the rate of 
3 KGS/kg. This resolution was in effect until the entry into force of the Treaty on the Accession of 
the Kyrgyz  Republic  to the Treaty on the EAEU.  
4.49.   After joining the EAEU, the Kyrgyz  Republic  applies a common trade remedy mechanism in 
relation to the import  of goods from third countries.  
4.50.   The decision to apply a safeguard, anti -dumping , or countervailing measure, to modify or 
terminate a safeguard, anti -dumping , or countervailing measure , or to not apply a measure is taken 
by the EEC following an investigati on, which is conducted in accordance with Annex No.  8 to the 
Treaty on the EAEU .32 No safeguard investigations are conducted in the EAEU member States at the 
national level.  
4.51.   The licensing of the export and import of specific goods in the Kyrgyz  Republic  is regulated in 
accordance with the Decision of the Board of the Eurasian Economic Commission dated 
21 April 2015, No. 30, "On measures of non -tariff regulation ". The licensing of the export and import 
of dual -use and military goods is regulated by national  legislation.  
 
32 Viewed at: 
http://www.eurasiancommission.org/ru/act/trade/podm/mery/Pages/measures_list_applied.aspx . WT/TPR/G/411 • Kyrgyz Republic  
 
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  4.52.   In exceptional cases, a member State of the EAEU in trade with third countries may 
unilaterally apply temporary restrictions on the import and export of certain goods.  
4.4.1   Technical regulation  
4.53.   In the field of technical regulation, during the pe riod from 2013 to 2015, the national technical 
regulations were in force in the Republic, establishing mandatory requirements for objects of 
technical regulation, as well as rules for product identification and conformity assessment 
procedures.  
4.54.   Since joini ng the EAEU, in accordance with the Treaty on the EAEU, the Kyrgyz  Republic  
implemented a unified policy in the field of technical regulation, ensuring the uniformity of 
measurements and the application of SPS measures. From the date of entry into force of  the 
technical regulation of the Customs Union/EAEU, the corresponding national technical regulations of 
the Kyrgyz  Republic  were recognized as invalid.  
4.55.   Within the EAEU, 49 technical regulations of the CU/EAEU were adopted , of which 43 entered 
into force.  
4.56.   The document confirming the compliance with technical regulations of the EAEU, depending 
on the type of product, is either the certificate of conformity or the declaration of conformity, drawn 
up according to the Unified Forms of the EAEU.  
4.57.   In terms of stan dardization, the total number of adopted national standardization 
documents  – national standards of the Kyrgyz  Republic  (KSS), national standards of the Russian 
Federation (NS GOST R), national standards of foreign countries (NS FC), and interstate standar ds 
(GOST)  – amounted to about 7 ,000 units. Amongst them , 611 units were harmonized with 
International Organization for Standardization (ISO), 690 units with interstate standards 
(International Electrotechnical Commission ( IEC)), and 238 units with the Codex Alimentarius.  
4.58.   As of the end of 2019, about 51% of national standardization documents were harmonized 
with international and regional standards.  
4.59.   In 2015 , the Kyrgyz  Republic  became a member of the Standards and Metrology Institu te for 
Islamic Countries (SMIIC).  
4.60.   In terms of metrology, the regulatory framework of the Kyrgyz  Republic  in the field of 
ensuring the uniformity of measurements was established. The Kyrgyz  Republic , as a member of the 
Interstate Council for Standardization , Metrology and Certification of the Commonwealth of 
Independent States (EASC CIS), an associated member of the International Organization for Legal 
Metrology (OIML), a member of the Euro -Asian Cooperation of National Metrological Institutions 
(COOMET), co nstantly improves the regulatory framework and harmonizes with documents of the 
EASC, OIML, and EAEU.  
4.61.   The activities in the field of ensuring the uniformity of measurements are regulated by the 
Law of the Kyrgyz  Republic  "On Ensuring the Uniformity of Measurements " adopted in 2012.  
4.62.   A system for ensuring the uniformity of measurements was created in the Republic, consisting 
of a state body for metrology, a national body for metrology, private metrological laboratories , and 
state surveillance.  
4.63.   In accordance w ith the Treaty on the EAEU, the unified regulatory documents have been 
adopted. These documents govern the procedures for approving the type of measuring instruments 
and standard samples, verification of measuring instruments, metrological certification of  a 
measurement technique (method), and rules for the mutual provision of information in the field of 
ensuring the uniformity of measurements contained in the information funds of EAEU member 
States.  
4.64.   The national accreditation system was brought into line with international norms and rules 
and complies with the requirements of the EAEU.  WT/TPR/G/411 • Kyrgyz Republic  
 
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  4.65.   In 2013, the Kyrgyz Center for Accreditation (KCA) became a full member of the International 
Laboratory Accreditation Cooperation (ILAC) and a signatory to the Agreement on Mutual 
Recognition of CAB Accreditation (ILAC -MRA) in the field of accreditation of testing and calibration 
laboratories. In 2018, KCA received the status of a full member of the International Halal 
Accreditation Forum (IHAF).  
4.66.   In order to create conditions  for the development of the halal industry in the Kyrgyz  Republic , 
in 2015 the Government adopted the Concept for the Development of the Halal Industry in the 
Kyrgyz  Republic for the Period 2017 -2020 and the Action Plan for its implementation .33 
4.4.2   Sanitary and phytosanitary measures  
4.67.   The procedures for veterinary and phytosanitary certification are established by the legislation 
of the Kyrgyz  Republic  on the basis of the relevant international standards of the World Organi sation 
for Animal Health and  the International Plant Protection Convention  (IPPC) . 
4.68.   In the process of the accession of the Kyrgyz  Republic  to the EAEU, the Government approved 
the quarantine phytosanitary rules of the Kyrgyz  Republic34 and priority veterinary and sanitary 
requirements  for the prevention of animal diseases35, which were aimed at ensuring appropriate 
changes in the rules of sanitary, phytosanitary , and veterinary measures for harmonization with the 
legal framework of the EAEU. The Concept for the Development of the Natio nal Quality Infrastructure 
of the Kyrgyz  Republic  for the Period up to 2020 is also aimed at achieving these goals .36 
4.69.   In accordance with the Treaty on the EAEU, the sanitary and epidemiological surveillance in 
the country is carried out at 22 sanitary cont rol points. According to the latest changes in national 
legislation, the issuance of a number of sanitary and epidemiological certificates has been cancel led. 
4.70.   The phytosanitary control on the state border with Uzbekistan, Tajikistan , and China is carried 
out at 13 phytosanitary control points and 2 international airports (Manas airport  and Osh airport), 
terminals, temporary storage warehouses , and internal stationary phytosanitary control posts.  
4.71.   Four plant quarantine laboratories operate in the Republic ; five veterinary laboratories were 
accredited in the cities of Bishkek and Osh ; and one phytosanitary laboratory is in the process of 
accreditation.  
4.72.   In order to implement a comprehensive state strategy on phytosanitary measures, the 
Government of the Kyrgyz  Republic  approved the Framework Program for Ensuring Phytosanitary 
Safety in the Kyrgyz  Republic  for 2019 -2023.37 The document defines the main priorities for the 
development of the phytosanitary service and makes it possible to achieve a decrease in the nu mber 
of quarantine pests by 2023  by conducting a systematic analysis of pest risk in accordance with 
international standards  and determin ing zones free from quarantine pests.  
4.5  Investment Policy  
4.73.   As a result of the intensification of investment and construction activities in the Republic, the 
use of investments in non -financial assets in 2013 -2019 steadily increased and amounted to 
KGS 191.6  billion in 2019, having increased by 1.7 times compared t o 2013. The volume of 
investments in fixed assets in 2019 amounted to KGS 181.0 billion, which is also 1.7 times more 
than in 2013.  
 
33 Decree of the Government of the Kyrgyz  Republic "O n Approval of the Concept of Development of the 
Halal Industry in the Kyrgyz  Republic" dated 22 June 2015, No.  385. 
34 Decree of the Government of the Kyrgyz  Republic "On Approval of Quarantine Phytosanitary Rules of 
the Kyrgyz  Republic and Regulation on th e Procedure for Issuing Phytosanitary, Re -export Phytosanitary and 
Quarantine Certificates" dated 18 June 2015, No.  376. 
35 Decree of the Government of the Kyrgyz  Republic "On Approval of Priority Veterinary and Sanitary 
Requirements for the Prevention of A nimal Diseases" dated 18 June 2015, No.  377. 
36 Decree of the Government of the Kyrgyz  Republic "On Approval of the Concept of Development of the 
National Quality Infrastructure of the Kyrgyz  Republic for the Period up to 2020" dated 22 June 2016, No.  346. 
37 Decree of the Government of the Kyrgyz  Republic "On Approval of the Framework Program for 
Ensuring Phytosanitary Safety in the Kyrgyz  Republic for 2019 -2023" dated 18 July 2019, No.  354. WT/TPR/G/411 • Kyrgyz Republic  
 
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  4.74.   During the period under review , in the structure of investments in fixed assets by type of 
investment, the main share (from 72% to 81%) was represented by investments aimed at the 
construction of non -residential buildings and structures, as well as the purchase and installation of 
machinery, equipment , and inventory. The growth of economic activity in the Republic largely 
depen ds on the inflow of foreign investment, which in 2019 amounted to more than USD 7 billion 
(excluding outflow), which is 1.3 times more than in 2013.  
4.75.   During the period under review, the largest share in the volume of foreign investments 
received was represe nted by other investments, the share of which ranged from 63% to 87%.  
4.76.   The volume of inflows of foreign direct investment (excluding outflows) in 2019 amounted to 
slightly more than USD 1 billion, an increase of only 11.7%, compared to 2013.  
4.77.   The highest priority economic activities for investment are manufacturing ; professional, 
scientific , and technical activities ; mining ; construction ; financial intermediation and insurance ; and 
information and communication.  
4.78.   The main investing countries in recent years we re China, Canada, the Russia n Federation , 
Kazakhstan, Switzerland, Turkey, the United Kingdom , the Netherlands,  and Uzbekistan.  
4.79.   The Kyrgyz  Republic  signed the Agreement on the Avoidance of Double Taxation with 
21 countries and the Agreement on the Protecti on of Foreign Investments with 27 countries.  
4.80.   The Kyrgyz  Republic  created fairly liberal investment legislation based on the principles of the 
most-favoured nation treatment. Investment policy in the Kyrgyz  Republic  is aimed at improving the 
investment climate and stimulating the attraction of domestic and foreign investments by providing 
a fair, equal legal regime to investors and guaranteeing the protection of their investments in the 
economy of the Kyrgyz  Republic . 
4.81.   Amendments were made to the Law of the Kyrgyz  Republic  "On Investments in the 
Kyrgyz  Republic " in 2016 -2018, by which investors granted with the right for free conversion of the 
national currency of the Kyrgyz  Republic  to any other currency for any payme nt related to 
investment in the country.  
4.82.   Investment -related money transfers in foreign currency to and from the Kyrgyz  Republic  are 
carried out freely and without restriction on the procedure established by the legislation of the 
Kyrgyz  Republic. Rules introduc ed into the legislation of the Kyrgyz  Republic  that limit money 
transfers in foreign currency to the Kyrgyz  Republic  and beyond  will not apply to foreign investors .38 
A stabilization regime was also introduced in the country – an investor  or an invest ing enterprise, 
within 10 years from the date of signing a stabilization agreement, has the right to choose the most 
favourable conditions on tax payments, including value added tax (but excluding other indirect 
taxes), and non -tax payments (except for pay ments for services rendered by government agencies).  
4.83.   The existing investment incentives and preferences are reflected in the Guide for Investors 
on Existing Investment Preferences in the Kyrgyz  Republic  and the Register of Investment 
Incentives. The mechan ism of public -private partnership was legally approved , and the Program for 
the Development of Public -Private Partnership defines its application in five areas: (i) transport 
(roads, bridges, railways, and airports); (ii) ecology and water supply (waste ma nagement, water 
supply , and sewerage); (iii) energy (central heating system, street lighting, and power distribution); 
(iv) social sector (health care, education, sports and tourism, and culture); and (v) informatization 
and public administration (e -govern ment, Internet distribution).  
4.6  Public Procurement Policy  
4.84.   The legal and regulatory framework for regulating the country's procurement is the Law of 
the Kyrgyz  Republic  "On Public Procurements " dated 3 April 2015 , No. 72, and a number of RLAs. 
 
38 The Law of the Kyrgyz  Republic "On Investments in the Kyrgyz  Republic", as amended by Law of the 
Kyrgyz  Republic No.  207 of 16 December 2016, and Law of the Kyrgyz  Republic No.  39 of 13 April 2018.  WT/TPR/G/411 • Kyrgyz Republic  
 
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  4.85.   The public procurement system of the Kyrgyz  Republic  is based on the principles of publicity, 
openness, legality , and impartiality in relation to suppliers (contractors). The legislation in the field 
of public procurement regulates the procedure for conducting  procurement in the Kyrgyz  Republic , 
clearly distinguishes the powers and functions of stakeholders, and provides for an appeal 
mechanism during procurement procedures.  
4.86.   According to the current legislation in the field of public procurement, purchasing 
organizations are all budgetary organizations, state and municipal enterprises , and joint  stock 
companies with a state share of 50% or more. At the same time, the suppliers (contractors) can be 
individual entrepreneurs, representatives of small and medium -sized businesses, representatives of 
large enterprises and companies , limited liability companies, joint stock companies , and enterprises 
of any form of ownership, both domestic and foreign, that have the necessary experience, paying 
taxes and s ocial security contributions  in a timely manner , and comply with other criteria applied by 
a customer.  
4.87.   The RLAs do not regulate the procurement directly associated with national security, defence , 
protection of state secrets, or natural disasters. The law does not apply to procurement of goods 
from societies of disabled people  or to procurement of works and services from individual 
entrepreneurs with physical disabilities .39 
4.88.   The Law "On Public Procurement " provides for a preferential regime for participatio n in public 
procurement for domestic suppliers. Starting from 2015 , all public procurement has been  carried 
out electronically on a public procurement portal .40 Currently, 27,590 suppliers (contractors) and 
4,072 procuring entities are registered on the public procurement portal.  
4.7  Protection of Intellectual Property Rights  
4.89.   For 2013 -2019, the legislation of the Kyrgyz  Republic  in the field of intellectual property was 
harmoniz ed in accordance with the requirements of international standards that also have 
determined the obligations of the Kyrgyz  Republic  during its accession to the EAEU. During that 
period , the grounds were provided for the development of innovative activities as a result of 
implementation of the State Program for Development of Intellectual Property and Innovation in the 
Kyrgyz  Republic  for 2012 -2016.41 
4.90.   Conditions were created for an international exchange of information in the field of intellectual 
property an d innovation through participation in various forums, including the use of global 
networks. A national network of the Technology and Innovation Support Center was established , 
and the conditions were created for raising the qualification s and development o f methodological 
support in the field of intellectual property to law enforcement officers and other interested 
government agencies.  
4.91.   During 2013 -2016, a number of changes and supplements were introduced into the legislative 
and institutional framework rela ted to the protection of intellectual property rights, which eliminated 
contradictions between the Laws of the Kyrgyz  Republic  in the field of intellectual property and the 
Civil Code of the Kyrgyz  Republic . In particular, these changes provided for an inc rease in the 
amount  of an administrative fine imposed on citizens for the production, acquisition, storage, sale, 
rental , or other illegal use of copies of works or phonograms for commercial purposes. It was also 
envisaged to refer criminal cases initiated  in accordance with the Criminal Code of the 
Kyrgyz  Republic  "Violation of copyright, related rights and rights of patent holders " to cases of 
private -public prosecution, and the consequences of such cases should be attributed to the 
competence of bodies for combating economic crimes.  
4.92.   In 2017 , the Kyrgyz  Republic  joined the Marrakesh Treaty to facilitate access to published 
works ado pted for persons who are blind, visually impaired , or otherwise print disabled , adopted on 
27 June 2013 in Marrakesh.  
 
39 Decree of the Government of the Kyrgyz  Republic "On the Implementation of the Law of the 
Kyrgyz  Republic 'On Public Procu rement of Goods from Societies of Disabled People of the Kyrgyz  Republic'" 
dated 25 March 2016, No.  150. 
40 Viewed at: http://zakupki.gov.kg . 
41 Decree of the Government of the Kyrgyz  Republic of 23 September 2011, No.  593.  WT/TPR/G/411 • Kyrgyz Republic  
 
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  4.93.   In 2017 , the Kyrgyz  Republic  ratified the Protocol amending the Agreement on Trade -Related 
Aspects of Intellectual Property Rights  (TRIPS Agreement) .42 The adopted Protocol will enable the 
Kyrgyz  Republic to address the issues associated with access to medicines , as it has insufficient 
production capacity in the pharmaceutical sector and is forced to import medicines from other 
countries.  
4.94.   In July 2017 , the Government approved the State Program for the Development of Intellectual 
Property in the Kyrgyz  Republic  for 2017 -2021. A particular feature of the new approach is capacity 
building for creating intellectual property through the formation of government orders, expanding 
the use of IT technologies, and transfer ring technologies and technological platforms through the 
EAEU and the Russian -Kyrgyz Development Fund.  
4.95.   The Kyrgyz  Republic  has bilateral agreements on cooperation in the field of inte llectual 
property with the following countries: the Russia n Federation , Uzbekistan, Kazakhstan, Azerbaijan, 
Armenia , Turkey, China, and Belarus.  
4.96.   Foreign legal entities or individuals permanently residing outside the Kyrgyz Republic or their 
patent attorney s conduct business related to the registration of a trademark through patent 
attorneys registered in Kyrgyzpatent .43 
4.97.   Today, there are 29 certified patent attorneys in the Kyrgyz  Republic .44 
4.98.   As of 31 December  2019, there are actually 312 trademarks in the Customs Register of 
Intellectual Property Objects. The Customs Register contains alcoholic and tobacco products, 
confectionery, soap, detergents, cosmetics and hygiene products, medicines, and spare parts for  
vehicles.  
4.99.   To protect intellectual property objects at the border, the customs authorities of the 
Kyrgyz  Republic  strengthened control when placing the goods containing intellectual property 
objects under customs procedures, which are included in the Custo ms Register of Intellectual 
Property Objects.  
4.100.   The customs authorities take measures to protect intellectual property rights provided for in 
Article  124 of the EAEU Customs Code and Article  107 of the Law "On Customs Regulation ".45 
4.101.   The legislation of the Ky rgyz Republic  establishes civil, administrative , and criminal liability 
for violation of intellectual property rights. As part of the judicial and legal reform in 2019, 
amendments were made to the RLAs of the Kyrgyz  Republic  concerning the liability of vio lation of 
copyright, related rights , and the rights of patent holders46; illegal use of someone else's trademark, 
service mark, geographical indication , or similar designations for homogeneous goods47; and illegal 
production of counterfeit copies of works or phonograms, computer programs , or databases for the 
purpose of marketing .48 
4.102.   According to the general rule, intellectual property rights are judicially protected. These 
disputes fall under the jurisdiction of state courts.  
 
42 Law of the Kyrgyz  Republic "On Ratification of the Protocol on Amendments to the Agreement on 
Trade -Related Aspects of Intellectual Property Rights" dated 15 April 1994, sign ed on 6 December 2005 in the 
city of Geneva" dated 22 November 2017, No.  192.  
43 Article  6, part 3, of the Law of the Kyrgyz  Republic "On Trademarks, Service Marks and Appellations 
of Origin of Goods" dated 14 January 1998 (with the latest amendments dated  6 February 2014, No.  28). 
44 Viewed at: http://patent.kg/index.php/ru/attorneys.html . 
45 Law of the Kyrgyz  Republic "On Customs Regulation" dated 29 April 2019, No.  52. 
46 Criminal Code of the Kyrg yz Republic, Article  199 ("Infringement of copyright, related rights and 
rights of patent holders") and Article 218 ( "Illegal use of identifications of goods (works, services))".  
47 Criminal Procedure Code of the Kyrgyz  Republic dated 15 May 2019, No.  62, A rticle 23 ("Types of 
criminal prosecution") and Article  153 ("Investigative jurisdiction").  
48 Code of the Kyrgyz  Republic "On Offences", Article  104 ("Illegal manufacture of counterfeit 
products").  WT/TPR/G/411 • Kyrgyz Republic  
 
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  4.103.   Further objectives in the field of intellectual property are capacity building in creating 
intellectual prope rty objects , improvement of mechanisms to receive and protect the rights for 
intellectual property objects , and establishing conditions for the use of intellectual property objects.  
4.8  Competition Policy and Business Environment  
4.104.   The main regulatory legal act governing competition law in the Kyrgyz  Republic  is the Law 
"On Competition "49, which defines the organizational and legal framework for the protection and 
development of competition and is aimed at preventing, limiting, suppressing monopolistic activities  
and unfair competition, and providing conditions for the creation and effective functioning of the 
markets of the Kyrgyz  Republic . 
4.105.   In 2013 -2019, activities to improve antimonopoly legislation were carried out in the 
Kyrgyz  Republic , in particular, the norm aimed at assessing the impact on competition of adopted 
and existing RLAs regulating entrepreneurial activity, which contributes to the prevention of the 
adoption of RLAs restricting competition , was introduced.  
4.106.   Following the acc ession of the Kyrgyz  Republic  to the EAEU, the Laws of the Kyrgyz  Republic 
"On Competition ", "On Natural and Permitted Monopolies in the Kyrgyz  Republic "50, and "On 
Advertising "51 were brought in to accordance with the legal framework of the EAEU.  
4.107.   With the adoption of the Law of the Kyrgyz  Republic  "On Amendments and Additions to the 
Law of the Kyrgyz  Republic  'On Natural and Permitted Monopolies in the Kyrgyz  Republic '", the state 
regulation of permitted monopolies (dominating in the market) was cancel led, and interference in 
business activities by the State was limited.  
4.108.   Amendments were introduced into the Law of the Kyrgyz  Republic  "On Competition ", 
providing for the introduction of the institution of caution, which is one of the mechanisms for 
supporting e ntrepreneurs.  
4.109.   The Law was also supplemented with an article providing for cases of state or municipal 
preferences. A number of norms aimed at improving antimonopoly regulation were also introduced.  
4.110.   Two state bodies regulating the activities of natural mono poly entities within the framework 
of the Law of the Kyrgyz  Republic  "On Natural Monopolies in the Kyrgyz Republic " operate in the 
Republic: the State Agency for Regulation of the Fuel and Energy Complex under the Government 
of the Kyrgyz  Republic , regulating the activities of natural monopoly entities in the energy sector , 
and the State Agency for Anti -monopoly Regulation under the Government of the Kyrgyz  Republic , 
working with natural monopoly entities in other areas of the economy.  
4.111.   Regulation is aimed at achieving a balance of interests of consumers and natural monopoly 
entities, ensuring the availability of goods (works  and services) sold by them to consumers, as well 
as the effective functioning of natural monopoly entities. To this purpose, gov ernment agencies 
consider settlement materials and set prices and tariffs for goods and services of natural monopoly 
entities, and agree on the contract formats for the supply (purchase) of goods (services) and rules 
for the provision of services.  
4.112.   Tariffs for electricity and heat are set within the framework of the medium -term tariff policy 
for electricity and heat, approved by the Government of the Kyrgyz  Republic . 
4.113.   Further , work will continue in order to improve antimonopoly legislation ; in particular, it is 
necessary to eliminate the problem of finding a comparable market, introduce a ban on other 
anti-competitive agreements , and introduce a rule enabling the antimonopoly body to control 
economic concentration in the process of establishing economic entiti es. In addition, in order to 
 
49 Law of the Kyrgyz  Republic "On Competition" dated 22 Jul y 2011, No.  116 (with amendments and 
additions of 22 July 2019, No.  96). 
50 Law of the Kyrgyz  Republic "On Natural and Permitted Monopolies in the Kyrgyz  Republic" dated 
8 August 2011, No.  149 (with amendments and additions dated of 17 May 2019, No.  64). 
51 Law of the Kyrgyz  Republic "On Advertising" dated 24 December 1998, No.  155116 ( with 
amendments and additions of  21 January 2015, No.  23). WT/TPR/G/411 • Kyrgyz Republic  
 
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  protect entrepreneurs from penalties that violated the rules of competition that did not entail harmful 
consequences, it is proposed to introduce the institution of prevention.  
4.114.   Also, work will be carried out to reduce the spher es of natural monopolies and transfer them 
to a competitive market.  
4.8.1   Business environment  
4.115.   The business climate in the country is gradually improving, as evidenced by the positive 
dynamics of positions in international rankings, as well as the growth in reta il trade and cross -border 
transfers.  
4.116.   In 2013 and 2019, t he Kyrgyz  Republic  ranked 70th of 190 countries  in the World Bank's 
Doing Business report.  
4.117.   In the rating of the World Economic Forum, reflecting the country's competitiveness, the 
Kyrgyz  Republic  in 2019 ranked 96th of 140 countries , but in 2013 it ranked 126th. 
4.118.   In 2019 , more than 300 large enterprises (with approximately 96,000 people ) and 
17,000 small and medium -sized enterprises operated in the territory of the Kyrgyz  Republic , of 
which 16 ,200 were small enterprises and 800 were medium -sized enterprises . The number of 
medium -sized enterprises has not changed since 2013, and the number of small enterprises 
increased by 38.5% ( up from 11,700). Small and medium -sized businesses carry out their act ivities 
in wholesale and retail trade ; repair of cars and motorcycles ; industry ; and  professional, scientific , 
and technical activities.  
4.119.   The number of individual entrepreneurs who registered in the territory of the 
Kyrgyz  Republic as of 1 January 2020 amou nted to 411 ,400 people or 16.8% of the total number of 
people employed in the economy . As of 1 January 2014 , the number amounted to 329,700 people , 
or 14.6% of the total number of people , employed in the economy.  
4.120.   On average, for 2013 -2019, the share of gro ss value added produced by small and 
medium -sized business entities amounted to about 40% of GDP. The number of people employed in 
small and medium -sized businesses (excluding peasants and farmers) tend ed to grow . In 2019 , 
there were 107,8 00 people, or 4 .4% of the total number of people , employed in the economy ; in 
2013, there were 88 ,000 people , or 3.9%. 
4.121.   The improvement of the business climate in the country was facilitated through the 
implementation of the PTSD for the Period 2013-201752, where the policy on regulating the business 
environment was focused on the following priority areas: (i) creating new approaches in the system 
of assessing regulatory impact in the development and adoption of management solutions, including 
those focused on ensuring environmental safety; and (ii)  reducing the level of government 
interference in business, with an emphasis of regulatory policy on the rational use of limited 
resources and tightening the requirements of environmental protection legislation.  
4.122.   In order to increase investment attractiveness and improve the country's business 
environment, the Program for the Develo pment of the Private Sector in the Kyrgyz  Republic  for 
2015-201753 was implemented, which included a number of activities: simplify ing regulation in the 
customs and trade spheres; optimiz ing tax administration; reforming labo ur legislation; reducing 
unnecessary government interference in business; streamlining the product safety control system; 
and implementing horizontal reforms.  
4.123.   Introducing new instruments of fiscal and administrative stimu lation of the economy, the tax 
system is gradually shifting to performing a stimulating function, and unnecessary, interfering 
administrative barriers are systematically removed; introduc ing new financial instruments aimed at 
increasing access to financial  sources of entrepreneurs, with the creation of a system of affordable 
 
52 Decree of the Government of the Kyrgyz  Republic "On Approval of the  Program for the Transition of 
the Kyrgyz  Republic to Sustainable Development for 2013 -2017" dated 30 April 2013, No.  218. 
53 Decree of the Government of the Kyrgyz  Republic "Program for th e Development of the Private Sector 
in the Kyrgyz  Republic for 2015 -2017" dated 18 March 2015, No.  129. WT/TPR/G/411 • Kyrgyz Republic  
 
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  credit, guaranteeing, and insurance; protect ing private property rights and the safety of investors' 
funds invested in the economy.  
4.124.   In order to simplify administrative formalities, the Government of the Kyrgyz  Republic  
announced a three -year moratorium on inspection of the activities of business entities .54 
Simplification of the licensing system, as well as shifting to electronic format for receiving permits , 
is envisaged.  
4.125.   To create favo urable conditions and further practical implementation of public -private 
partnership mechanisms in the Kyrgyz  Republic , the Government adopted in 2016 the Public -Private 
Partnership Development Program in the Kyrgyz  Republic  for 2016 -2021.55 The Public-Private 
Partnership Council in the Kyrgyz  Republic  was established.  
4.126.   At present, the country's regulatory efforts are aimed at creating additional incentives for 
national investors and entrepreneurs, increasing their competitiveness through lower rates of taxes 
and tariffs, minimum sufficient government regulatory impact, and simplicit y and transparency of 
setting up and running a business.  
4.9  Regional Economic Integration  
4.9.1   Eurasian Economic Union  
4.127.   On 12 August 2015, the Kyrgyz  Republic  joined the Treaty on the Eurasian Economic Union 
dated 29 May 2014, becoming the fifth full -fledged member  of the EAEU.  
4.128.   Most of the export positions of the Kyrgyz  Republic  are focused on EAEU countries ; the share 
of agricultural exports in 2019 and 2013 did not change and amounted to about 50%.  
4.129.   During the period under review, the export of electricity and fini shed garments, in the 
production of which most of the population, including those living in rural areas, is involved, was 
accounted for the EAEU countries.  
4.130.   The Kyrgyz  Republic  imports from EAEU countries investment and strategically important 
goods for the  national economy, including various types of equipment. In 2019, from the EAEU 
countries were imported: fuels and lubricants , 96.2% ; gas, 90.4% ; grain, 93%; timber , 85%; and 
rolled metal , 79%. The volumes of supplies of these goods in 2013 were: fuels and  lubricants , 99%; 
gas, 78%; grain, 100% ; timber , 74%; and rolled metal , 50%.  
4.131.   In November 2018 , in order to determine the compliance of the EAEU Treaty with WTO 
norms and rules, and to inform WTO Members of the substance of the Treaty  regarding  the foreign 
trade regime of the EAEU in trade with third countries and of the degree of integration of the EAEU 
member States, a Factual Presentation of the Treaty on the Eurasian Economic Union was presented 
at the meeting of the WTO Committee on regiona l trade agreements.  
4.132.   Since 2016 , the Kyrgyz  Republic  has been granted the status of a user of the GSP+ scheme , 
which enabled it to export duty-free over 6 ,000 commodity items to the European  Union 's markets. 
So far, due to the preservation of requirements f or safety, quality, packaging, and labelling of goods, 
it has not been possible to dramatically increase exports.  
4.9.2   Agreement on the CIS Free Trade Area  
4.133.   In addition to the integration processes within the E AEU for the period 2012 -2015, 
integration processes continued to develop in the CIS. The Agreement on the Free Trade Area signed 
on 18 October 2011 came into force, establishing a free trade regime between the Russia n 
 
54 Decree of the Government of the Kyrgyz  Republic "On Introduction of Temporary Ban (Moratorium) 
on Inspection of Business Entities" dated 17 December 2 018, No.  586.  
55 Decree of the Government of the Kyrgyz  Republic "Public -Private Partnership Development Program in 
the Kyrgyz  Republic for 2016 -2021" dated 16 March 2016, No.  327.   WT/TPR/G/411 • Kyrgyz Republic  
 
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  Federation , Armenia, Belarus, Kazakhstan, the Republic of Moldova, Tajikistan , and Ukraine . In 
2014, Uzbekistan joined the Agreement.  
4.134.   The Agreement establishes duty -free access to the markets of its participants for goods 
across almost the entire product range, with the exception of certain particularly sensitive goods.  
4.135.   The Agreement provides f or not only  a free trade regime for goods, but also for common 
rules for the application of trade remedies, technical regulation, the application of SPS measures, 
and customs administration.  
4.136.   The Kyrgyz  Republic  provides a free trade regime to Azerbaijan56, Georgia57 (a member state 
of the CIS until 2009) , and Turkmenistan, as a founding state of the CIS.  
4.9.3   Free trade agreements  
4.137.   In accordance with the Treaty on the EAEU, a common trade regime is applied on the 
territory of the EAEU with respect to third coun tries.  
4.138.   In this regard, the free trade regime for goods with a third party is established on the basis 
of the EAEU free trade agreement with such a party.  
4.139.   Currently, the Free Trade Agreement between the EAEU and the Socialist Republic of 
Viet Nam is in fo rce, which entered into force on  5 October  2016.  
4.140.   Between 2016 and 2019, trade between the Kyrgyz  Republic  and Viet  Nam increased by 
more than 2.5 times , from USD 3.3 million to USD 8.5 million.  
4.141.   The Agreement covers all areas of trade and economic cooperation. In addition to reducing 
the rates of import customs duties, obligations of the parties to protect intellectual property rights 
were provided for, areas of cooperation in the field of sustainable development, e -commerce, as well 
as in the field  of public procurement, and common principles for protecting competition were 
established. Also, the Agreement significantly increases the predictability of trade regulation.  
4.142.   In 2018 , the Agreement on Trade and Economic Cooperation between the EAEU and the  
People 's Republic of China was signed, which entered into force on 25 October 2019, establishing 
the fundamental principles and rules for trade in goods between the EAEU and China.  
4.143.   The agreement is not preferential ; duties on trade remain.  
4.144.   Since 27 Octob er 2019, an Interim Agreement with the Islamic Republic of Iran has been in 
effect, leading to the formation of a free trade area, under which the import customs duties have 
been reduced or eliminated for a limited group of goods of high export interest fo r the parties to the 
Agreement.  
4.145.   Agreements with Singapore and Serbia , for which the procedures required for their entry 
into force are being finalized, relate to agreements on free trade area s that were signed but not 
entered into force.  
4.146.   Negotiations are u nderway to establish free trade area s with Egypt, India , and Israel, and 
conclude a bilateral agreement on trade in services and investments between the Kyrgyz  Republic  
and Singapore.  
 
56 Agreement between the Government of the Kyrgyz  Republic and the Government of the Republic of 
Azerbaijan on Free Trade, signed on 12 January 2004 in Moscow, entered into force on 28 March 2006.  
57 Decision on the Accession of the Republic of Georgia to the  Commonwealth of Independent States 
(Moscow, 22 October 1993 – Minsk, 3 December 1993).  WT/TPR/G/411 • Kyrgyz Republic  
 
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  5  FURTHER DIRECTIONS OF TRADE POLICY OF THE K YRGYZ  REPUBLIC   
5.1.  The trade pol icy of the Kyrgyz  Republic  in the medium - and long -term perspective s will be 
determined on the basis of the need to create a competitive economy, expand competitive 
advantages in traditional industries , and further diversif y export markets.  
5.2.  The trade policy of the Kyrgyz  Republic  will be formed in accordance with the funda mental rules 
and regulations of the WTO.  
6  LIST OF ABBREVIATIONS  
Abbreviation  Definition  
CCT Common Customs Tariff 
CIS Commonwealth of Independent States  
CN FEA  Commodity Nomenclature of Foreign Economic Activity  
COOMET  Euro-Asian Cooperation of National M etrological Institutions  
CSM Center for Standardization and Metrology under the Ministry of Economy of 
the Kyrgyz Republic  
Customs Service  State Customs Service under the Government of the Kyrgyz Republic  
EAEU  Eurasian Economic Union  
EASC CIS  Interstate Council for Standardization, Metrology and Certification of the 
CIS  
EEC Eurasian Economic Commission  
EU European  Union  
GDP Gross domestic product  
GOST  State standard of the USSR (also used as an abbreviation for standards 
adopted within the framework of the Interstate Council of the CIS Member 
States)  
GOST R  State standard of the Russian Federation  
GSP+  Generalized system of preferences  
IEC International Electrotechnical Commission  
IHAF International Halal Accreditation Forum  
ILAC International Laboratory Accreditation Cooperation  
IPPC International Plant Protection Convention  
ISO International Organization for Standardization  
KCA Kyrgyz Center for Accreditation  
KR Kyrgyz  Republic  
KSS State standard of the Kyrgyz  Republic  
NBKR  National Bank of the Kyrgyz  Republic  
NSC National Statistical Committee of the Kyrgyz  Republic  
OIML International Organization of Legal Metrology  
PTSD  Program for the Transition of the Kyrgyz  Republic to Sustainable 
Development for the Period 2013 -2017 
RESs Renewable energy sources  
RLAs Regulatory legal acts  
SFED  State Fund for Economic Development  
SMIIC  Standards and Metrology Institute for Islamic Countries  
SPS Sanitary and phytosanitary  
Tax office  State Tax Service under the Government of the Kyrgyz Republic  
TRIPS Agreement  Agreement on Trade -Related Aspects of Intellectual Property Rights  
UNWTO  United Nations World Tourism Organization  
VAT Value added tax 
WTO World Trade Organization  
 
 
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