WT/REG74/R/I  
 
16 November 2016 
(16-6311) Page: 1/8 
Committee on Regional Trade Agreements  Original: English  
 
 UKRAINE -KYRGYZ  REPUBLIC  IMPLEMENTATION REPOR T  
 This Implementation Report has been drafted in accordance with Article 15 of the 
Transparency Mechanism Decision and following the draft guidelines contained in JOB/REG/4 
issued in January 2013.  
 
 This report  does not prejudge the Parties' position on the concept and the duration of the 
implementation periods in FTAs and their relationship to the "reasonable length of time" within the 
meaning of Art. XXIV:5(c) of the GATT 1994 or "the reasonable time -frame" wi thin Art. V:1(b) of 
the GATS.  
 
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1  BACKGROUND INFORMATI ON ON THE AGREEMENT  
1.1.  The Free Trade Agreement between the Cabinet of Ministers of Ukraine and the Government 
of the Kyrgyz Republic was signed on 25 May 1995 and entered into force on 31 December 1997.  
1.2.  The Agreement covers trade in goods and is based on Article XXIV of GATT.  
1.3.  Statistical data on trade in goods between the Parties, some indications on Parties' import 
coverage after full implementation of the FTA as well as information about trade defence measures 
can be found in the Annexes to this report.  
2  PROVISIONS ON TRADE IN GOODS  
2.1  Import duties , charges and quantitative restrictions  
2.1.  The Parties committed not to impose taxes and charges on imports from another Party higher 
than those impo sed on domestic goods or imports from the third countries.  
2.2.  Rules for transportation, storage and payments for goods originating in another Party should 
not differ from those applied to goods from third countries.  
2.1.1   Tariffs  
2.3.  Duty-free trade regime is applied to all goods.  
2.4.  No tariff rate quotas are applied.  
2.1.2   Quantitative restrictions  
2.5.  The Parties committed not to introduce quantitative or other special restrictions unless they 
are justified and only for strictly defined time period.  
2.6.  Ukraine does not apply import quotas on products from Kyrgyzstan.  
2.1.3   Products  excluded from liberalization  
2.7.  Agreed list of exemptions is an integral part of the Agreement.  WT/REG74/R/I  
 
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  2.1.4   Final tariff schedule applied by RTA parties  
2.8.  Duty-free trade is implemented on the entire tariff schedule unless exemp tions are agreed 
upon between the parties and respective protocols are ratified by both parties.  
2.2  Export duties, charges and quantitative restrictions  
2.2.1   Tariffs  
2.9.  No export duties or taxes and charges of equivalent effect should be applied by the Parties in 
bilateral merchandise trade.  
2.10.   However, Ukraine has applied export duties on waste and scrap of metal since 2006. 
According to the Law of Ukraine № 441 -V1, this export duty is applied irrespective of  existing free 
trade agreements.  
2.2.2   Quantitative restrictions  
2.11.   The Parties agreed that quantitative restrictions on exports might be applied in trade 
between the Parties. The Agreement allows for introducing  quantitative restrictions of export of 
products in case of deficit of those products in the domestic market.  
2.12.   Since 2012 Ukraine has applied export quotas on some non -renewable natural resources, in 
particular, on natural gas of the Ukrainian origin, slag,  ash and residues containing copper and 
zinc. 
2.3  Regulatory provisions on trade in goods  
2.3.1   Rules of origin  
2.13.   According to Article I of this Agreement rules of origin in Ukraine -Kyrgyzstan bilateral trade 
were regulated by Rules of Origin of Goods dated 24 Septem ber 19932, signed by the CIS member 
states.  
2.14.   However, because of plurilateral free trade negotiations within the CIS, framework on rules 
of origin has been amended several times.   
2.15.   Revised Rules of Origin of Goods were adopted on 30 November 2000.3 In 2009 A greement 
on Rules of Origin of Goods in the CIS4 was signed. It was ratified on 7 July 2011, and came into 
force for Ukraine on 14 September 2011.  
2.16.   No special references to the WTO Agreement on Rules of Origin are included in the Article I 
of the Agreement.   
2.3.2   Non-tariff barriers  
2.17.   No specific commitments regarding standards, technical regulations and conformity 
assessment are included into the Agreement.  
2.3.3   Sanitary and phytosanitary measures  
2.18.   No specific commitments regarding sanitary and phytosanitary measures ar e included into 
the Agreement.  
                                                
1 http://zakon 2.rada.gov.ua/laws/show/441-16  
2 http://zakon 4.rada.gov.ua/laws/show/997_055   
3 http://zakon 4.rada.gov.ua/laws/show/997_484  
4 http://zakon 4.rada.gov.ua/laws/show/997_ m65 WT/REG74/R/I  
 
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  2.3.4   Trade defence instruments  
2.19.   The Agreement allows for introducing restriction of imports, if products are imported into 
the territory of one of the Parties in such quantities and on such terms that cause or threaten to 
cause da mage to domestic producers of similar or directly competitive products.  
2.20.   Information about Ukrainian trade defence instruments can be found in Annex 2 to the 
report.  
2.21.   Products imported from Kyrgyzstan were not subject to safeguard measures.   
2.22.   Certain product s imported from Ukraine were subject to safeguard measures applied by 
Kyrgyzstan irrespective of country of origin. Safeguard measures in the form of duties on wheat 
flour were applied from 2009 to 2010, were reintroduced again in 2013 and will remain in f orce 
utill 2017.  
2.23.   Starting from the date of accession of the Kyrgyz Republic to the Eurasian Economic Union 
(12 August 2015) application of trade defence measures will be governed by the legislation of the 
Eurasian Economic Union.5 
3  PROVISIONS ON TRADE IN SE RVICES  
3.1  Commitments  
3.1.  The Agreement does not  cover trade in services . 
4  OTHER PROVISIONS IN THE AGREEMENT  
4.1  Export control  
4.1.  The Parties agreed to coordinate export control policy regarding third countries. In order to 
maintain such cooperation, an effective syste m of export control should be created by facilitating 
regular consultations and mutually agreed measures.  
4.2.  The most recent law that regulates state control of export in Ukraine is the Law of Ukraine 
"On State Control of international Transfers of Goods Des ignated for Military Purposes and 
Dual-Use Goods "6 dated 20 February 2003. The state control is conducted by the State Service for 
Export Control of Ukraine.  
4.2  Transit  
4.3.  Free transit is an important precondition for implementation of Agreement. Both Parties 
committed to ensure free transit of goods originating from customs territory of another Party or 
third countries. Free movement of goods shipped to another Party or any third country should also 
be guaranteed.  
4.4.  The Parties took an obligation to provide to ano ther Party 's exporters, importers or carriers 
all available and necessary facilities and services for transit on terms that are not worse than those 
provided to their own transport operators or carriers of any third country.  
4.5.  Procedures and conditions of tr ansit are regulated according to the international rules.  
                                                
5 http://www.eaeunion .org/upload /iblock /355/2014_3. pdf  
https://docs.eaeunion .org/sites/storage 1/Lists/Documents /f50b42fa-3b79-4df7-90a1-
922e2a1e759f/140a0ff6-7930-4f80-a5a2-
bb49134 c8d84_% D0%BF%D1%80% D0%BE%D1%82% D0%BE%D0%BA%D0%BE%D0%BB%20% D0%BE%D
0%B1%20% D1%83% D1%81% D0%BB%20% D0%B8%20% D0%BF%D0%B5%D1%80% D0%B5%D1%85%20
%D0%BF%D0%BE%D0%BB%D0%BE%D0%B6%20% D0%BF%D0%BE%20% D0%BF%D1%80% D0%B8%D0
%BC%D0%B5%D0%BD%D0%B5%D0%BD%D0%B8%D1%8E%20% D0%BA%D1%8B%D1%80% D0%B3%20
%D1%80% D0%B5%D1%81% D0%BF%20% D0%B4%D0%BE%D0%B3%D0%BE%D0%B2%D0%BE%D1%80
%D0%B0%20% D0%BE%20% D0%B5%D0%B0%D1%8D%D1%81. pdf 
6 http://zakon4.rada.gov.ua/laws/show/549 -15 WT/REG74/R/I  
 
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  4.3  Re-exports  
4.6.  The Parties committed that re -exports would be regulated by the Agreement on Re -export of 
the Goods and Approval Procedure on Re -export signed by the CIS member states on 15 April 
1994, t hough not yet ratified.7 
4.4  Trade and competition  
4.7.  Unfair business practices are recognized as those which contradict the Agreement. The  unfair 
practices may inter alia  include those which aim at hindering or restricting competition in the 
Parties ' markets, as  well as using market power.  
4.8.  Cooperation in the area of competition policy in the Commonwealth of Independent States is 
regulated by the Agreement on Coordinated Competition Policy8 signed on 25 January 2000.  
4.5  Common classification  
4.9.  The Parties committed t o use 9 -digit commodity nomenclature based on the Harmonized 
Commodity Description and Coding System for the purposes of tariff and non -tariff measures, 
customs operations as well as exchange of statistics.  
4.10.   The most recent commodity classification used by  Ukraine and Kyrgyzstan is based on 2012 
edition of Harmonized System Nomenclature by the World Customs Organization 
(HS classification).  
4.6  Economic cooperation and capacity building  
4.11.   Since 1997 economic cooperation between Ukraine and Kyrgyzstan has been con ducted in 
accordance with the Agreement on Friendship and Cooperation9. In addition to that, in 1996 
Agreement between the Government of Ukraine and the Government of the Kyrgyz Republic on 
Development of Economic Cooperation10 was signed.  
4.6.1   Information excha nge 
4.12.   Competent authorities of the Parties committed to establish a mechanism of information 
exchange. Changes in the national legislation, which can affect implementation of the Agreement, 
should be immediately provided to another Party, specifically in tra de and economic area including 
investments, taxation, banking, insurance and other financial services, transportation, customs 
and customs statistics.  
4.13.   Information exchange channels are official enquiries to Ministries, meetings of the Joint 
Ukrainian -Kyrgy zstan Intergovernmental Commission  on Cooperation, international organizations 
and meetings.  
4.6.2   Joint Commission  
4.14.   The Parties agreed to establish a joint Ukrainian -Kyrgyzstan commission  in order to monitor 
realization of the Agreement and work on further impro vement of trade and economic cooperation.  
4.15.   The Joint Ukrainian -Kyrgyzstan Intergovernmental Commission  on Cooperation was 
established according to Article 13 of Ukraine -Kyrgyzstan FTA. The first meeting of the Joint 
Commission was held on 27 -28 March 2003 i n Kyiv. Currently, 3 sessions were held. The recent 
meeting took place on 4 July 2013.  
                                                
7 http://zakon 3.rada.gov.ua/laws/show/997_008  
8 http://zakon 1.rada.gov.ua/laws/show/997_502    
9  http://zakon5.rada.gov.ua/laws/show/417_717  
10 http://zakon 5.rada.gov.ua/laws/show/417_062   WT/REG74/R/I  
 
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  4.16.   Issues discussed during the Commission meetings include assessment of bilateral economic 
cooperation programs, current state and perspectives of trade and economic coop eration, including 
industry, technology, agriculture, transports, and energy spheres.  
4.7  Protection of legitimate objectives  
4.17.   The Agreement allows the Parties to apply measures commonly acceptable by international 
practice in order to protect their legitimate  objectives or implement their commitments according 
to their international rights, including information affecting interests of national defence; trade in 
arms, munitions and military equipment; research or production -related to the defence needs; 
supply of materials and equipment used in nuclear industry; protection of public morals and public 
order; protection of industrial and intellectual property; trade in gold, silver, and other precious 
metals and stones; protection of human, plant and animal health . The Agreement also allows for 
introducing restriction of imports, if there is balance of payments problem.  
4.18.   On 28 December 2014 the Law of Ukraine "On measures concerning stabilization of the 
balance of payments of Ukraine in compliance with Article XII o f the General Agreement on Tariffs 
and Trade 1994" No. 73 -VIII11 and the Law of Ukraine "On Amending the Customs Code of Ukraine 
(concerning stabilization of the balance of payments)" No. 74 -VIII12 entered into force. Pursuant to 
these Laws, Ukraine introduc ed temporary import surcharge of 10% for agricultural goods and 5% 
for non -agricultural goods, except essential goods. According to the Law the measure is to be 
applied for one year, but Ukraine committed to terminate it by the end of 2015.  
4.19.   Ukraine has app lied export quotas on selected types of precious metals and stones since 
1992.  
4.8  Dispute settlement  
4.20.   The Parties have declared their intention to avoid disputes in mutual trade. If disputes over 
interpretation and implementation of the provisions of the Agre ement arise, they should be settled 
through consultations.  
                                                
11 http://zakon4.rada.gov.ua/laws/show/73 -19 
12 http://zakon2.rada.gov.ua/laws/show/74 -19 WT/REG74/R/I  
 
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  ANNEX 1  
STATISTICS ON TRADE IN GOODS  
Table A1. 1 Ukraine: Imports from Kyrgyzstan (million $)   
Year Total  Agricultural products*  Non-agricultural products*  
1998  10.5 9.6 0.9 
1999  7.5 7.3 0.2 
2000  2.3 1.8 0.5 
2001  2.6 1.1 1.5 
2002  4.3 1.6 2.7 
2003  4.3 2.4 1.9 
2004  5.2 2.1 3.1 
2005  5.7 2.4 3.3 
2006  5.3 1.7 3.6 
2007  6.3 2.0 4.3 
2008  9.1 3.9 5.2 
2009  4.0 2.3 1.7 
2010  6.1 2.7 3.4 
2011  7.5 4.3 3.2 
2012  6.5 2.9 3.6 
2013  11.7 5.4 6.3 
2014  4.3 0.9 3.4 
* WTO definition.  
Source:  UN ComTrade.  
 
Table A1. 2 Kyrgyzstan: Imports from Ukraine (million $)   
Year Total  Agricultural products*  Non-agricultural products*  
1998  12.2 1.0 11.2 
1999  13.7 1.4 12.3 
2000  6.1 1.0 5.1 
2001  5.1 1.2 3.9 
2002  6.1 2.5 3.6 
2003  12.0 4.7 7.3 
2004  19.5 8.7 10.8 
2005  31.6 12.3 19.3 
2006  38.0 18.5 19.5 
2007  71.4 27.9 43.5 
2008  83.6 46.3 37.3 
2009  83.8 47.5 36.3 
2010  75.0 47.1 27.9 
2011  111.3  65.1 46.2 
2012  127.0  69.3 57.7 
2013  134.7  69.8 64.9 
2014  102.5  46.9 55.6 
* WTO definition.  
Source:  UN ComTrade.  
 
 
 
 WT/REG74/R/I  
 
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  Table A1. 3 Ukraine import coverage after full implementation of the Agreement   
Coverage  1998  1999  … 2013  2014  
% of tariff lines 100 100 … 100 100 
% of imports  100 100 … 100 100 
Note:  Line coverage (% tariff lines)  is calculated as duty -free quota -free Ukraine 's tariff lines on imports 
from Kyrgyzstan divided by total Ukraine 's tariff lines on imports from Kyrgyzstan.  
 Trade  coverage (% imports ) is calculated as duty -free quota -free Ukraine 's imports from Kyrgyzstan 
divided by total Ukraine 's imports from Kyrgyzstan.  
 For calculation of the coverage rates the preferential tariffs in force on 1 January of the indicated 
years h as been used.   
Source:  Ukraine -Kyrgyzstan FTA . WT/REG74/R/I  
 
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  ANNEX 2  
TRADE DEFENCE INSTRU MENTS  
Table A2. 1 Ukraine: safeguard measures applied irrespective to the country of origin   
HS 
Nomenclature  Code  Product description  Measure  Years  
HS 1996 1905906000  Bread, pastry, cakes, 
biscuits and other bakers' 
wares  tariff 2003-2007 
HS 1996  8413919090; 8412905000; 
7325109900;  7326909700  Parts of pumps and engines; 
articles of iron or steel  quota  2005-2006 
HS 1996  6804221800  Millstones, grindstone s, 
grinding wheels  tariff 2005-2009 
HS 1996  6807101000  Articles of asphalt or of  
similar material  tariff 2005-2009 
HS 1996  3506100010  Glues  tariff 2006-2007 
HS 1996  8482109000  Ball bearings  tariff 2006-2009 
HS 1996  6002921000; 6002923000; 
6002929000; 6002933100; 
6002933300;  6002933900  Knitted or crocheted fabrics  tariff 2007-2010 
HS 1996  5208221500; 5208221900; 
5208229500; 5208229900; 
5208290000; 5208321500; 
5208321900; 5208329500; 
5208329900; 5208390000; 
5208521000; 5208529000; 
5208590000  Woven fabri cs of cotton  tariff 2007-2010 
HS 1996  8539311000  Electric filament or 
discharge lamps  tariff 2007-2010 
HS 1996  7304291100  Steel pipes  quota  2008-2016 
HS 1996  3605000000  Matches  tariff 2009-2012 
HS 1996  7005293500  Sheet glass  tariff 2009-2010 
HS 2007  8703221000; 8703231910  Motor cars  tariff 2013-2015 
HS 2012  6911100000  Tableware and kitchenware 
of porcelain  tariff 2014-2017 
Source:  the official newspaper "Uryadoviy Courier" . 
 
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