WT/TPR/S/170 Trade Policy Review 
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II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(1) INTRODUCTION  
1. Since acceding to the WTO in December 1998,  the Kyrgyz Republic has continued its 
economic transition, changing legal and institutional arrangements to facilitate trade and investment 
liberalization.  The WTO Agreements are part of domestic law, and a new Customs Code replaced the 
1997 Code in 2004.  A presidential democracy, the President, as Head of State and head of the 
executive branch, has extensive au thority, including over trade-related decisions. Political and 
economic reforms still receive priority.  Constitutiona l reform is aimed at limiting presidential powers 
in favour of Parliament and the Government, incl uding over economic decisions.  The independence 
and consistency of the judiciary has been questione d.  Legal and institutiona l frameworks suffer from 
weak and inconsistent execution.  The main ministry  involved in trade-related policy formulation is 
the Ministry of Industry, Trade and Tourism.  The WTO Inter-Departmental  Commission coordinates 
multilateral issues, including implementation of related agreements.  
2. The Kyrgyz Republic's main trade policy objectives are:  achieving a more outward-oriented 
trade regime, increasing overseas ma rket access for exports, and inte grating more into the world 
economy.  The Government believes trade and i nvestment liberalization will improve economic 
efficiency and promote export diversification.  Re garding formal barriers, the Kyrgyz Republic has 
one of the most open trade and investment regi mes in the region and also among comparable 
developing countries.  WTO accession played a pivota l role in this:  Kyrgyz made major liberalizing 
commitments, such as binding tariffs at relativ ely low ceiling levels, other import charges and 
agricultural export subsidies at zero; eliminating discriminatory excise taxes; and applying the 
customs valuation provisions.  The Kyrgyz Republic has not been involved in any WTO dispute.  It supports the Doha round, and has participated main ly in negotiations on services, market access for 
non-agricultural goods, and agriculture. 
3. The Government's two-pronged approach to  liberalization embraces multilateralism and 
regionalism.  It has actively pursued regional trade ar rangements, largely with former soviet states, as 
free-trade agreements (FTAs) or customs unions.  A plethora of preferential agreements has tied the 
Kyrgyz Republic to CIS states through mainly CIS- wide agreements, especial ly the CIS FTA (as the 
forerunner to the Economic Union), and other agreemen ts, either bilateral or regional, with various 
CIS members, such as the Eu roAsian Economic Community (EAEC) and the Central Asian 
Cooperation Organization (CACO) (which may be inte grated with the EAEC).  Bilateral FTAs exist 
with nine CIS states, the latest was signed with  Azerbaijan in 2004;  several of its regional 
arrangements (e.g. Economic Coopera tion Organization) involve non-CIS countries.  Membership of 
multiple preferential trade agreements, including th ree potential customs unions, with varying levels 
of progress, and different rules, coverage, and impl ementation periods, adds un certainty to the Kyrgyz 
trade regime, and weakens transparency.   Care is needed so that its regional initiatives do not 
undermine trade reforms and suppor t for multilateralism.  Adopting th e EAEC common external tariff 
may raise protection (possibly reduc ing national welfare), for example,  with troubling implications for 
its WTO obligations.   
4. The 2003 Law on Investments further strengthened the investment regime.  It extended equal 
and non-discriminatory national treatment to foreign investors by giving them identical legal status 
and conditions.  Foreign investors may operate as wholly overseas-owned or joint ventures with 
Kyrgyz or other partners.  All activities are genera lly open to FDI, and seemingly no foreign equity 
limits exist, except in air transport and production of alcoholic beverages (equity limits on the latter 
also apply to domestic investors).  FDI incentives have been rationalized, and efforts are ongoing to 
improve the investment and business climate, including use of annual government plans (matrixes).  Kyrgyz Republic WT/TPR/S/170 
 Page 21 
 
 
However, despite improvements in the invest ment regime the overall unfriendly business and 
regulatory environment continues to have a negative impact on the investment climate.  
(2) GENERAL INSTITUTIONAL AND LEGAL FRAMEWORK  
5. The Kyrgyz Republic is a unitary presidential democracy with elements of a parliamentary 
system.  The May 1993 Constitution, adopted afte r independence from the Soviet Union in 1991, 
separates state power into the legislative, execu tive, and judicial branches.  It provides for  free 
presidential and parliamentary elections every fi ve years based on universal suffrage and secret 
ballot.1  In February 2003, the Assembly of Peopl e's Representatives (upper house) was abolished, 
and a unicameral Parliament (Jogorku Kenesh), c onsisting of the Legislative Assembly with 
75 deputies elected from single member constituenci es, replaced the bicameral system (Law on New 
Revision of Constitution 2003).  Parliament's role rema ins secondary to that of the President who has 
significant authority and influence over the legislatur e.  The Government's priorities are constitutional 
reform, including limiting presidential powers in favour  of parliament and the executive, and giving 
the prime minister greater authority over economic decisions.  The Constitutional Council, formed in April 2005, is examining such reforms, including a return to the bicameral parliamentary structure. 
6. Parliament has sole legislative authority;   functions within its competence include 
implementation of laws.  It consents to the Presi dent's appointment and te rmination of the Prime 
Minister, ministers, deputy ministers, and admini strative heads, and other presidential nominations, 
such as the Chairman of the National Bank, court officials, and heads of local government administrations.  Parliament also approves the gove rnment budget, tax, customs, tariff, investment, 
foreign trade, and social and economic devel opment programmes;  the National Bank's annual 
monetary policy plans;  and the President's re commended government structure.  It also ratifies 
international treaties.  Parliamentarians are not  government members.  Up to seven permanent 
parliamentary committees are permitted.
2  Individuals, through popular initiative (30,000 voters), the 
President, parliamentarians and th e government may introduce bills to parliament, which are reviewed 
by the respective committee and returned for votin g within one month.  Once approved, bills are 
signed by the President within one month to become law;  they can be vetoed unless passed a second 
time by a minimum two-thirds majority. 
7. The President, who must be a non-parliamentar ian, is the Head of State, the supreme 
government official and head of the executive bran ch.  He forms the Government (Pravitel'stvo), 
which is responsible to him and accountable to Parliament.  The President defines the government 
structure and exercises control over its work, incl uding setting major directions of internal and 
external policies, in consultation with the Prime Mini ster and subject to parliamentary consent.  This 
especially includes foreign policy and responsibility for negotiating and signing international treaties, 
although this authority may be transferred to the Government.3  The President appoints government 
members on the Prime Minister's recommendation, and may preside over government sessions.  He 
can suspend or annul government resolutions, and issu es decrees and orders that have the force of 
law.  By controlling all executive and judicial branch  appointments, mostly with limited parliamentary 
                                                      
1 Parliamentary elections in February 2005 led to widespread public protests, and presidential elections 
were brought forward from October to July after the form er President resigned and fl ed the country in March. 
Parliament transferred powers to th e opposition and appointed the current president as acting President and 
Prime Minister of an interim government pending nationa l elections.  However, before these were held, the 
Central Election Commission ruled the elections legitimate, and Parliament endorsed the new Government and Prime Minister in August 2005. 
2 These include the Committees for Budget and Economic Policy;  International, Foreign Economic 
Issues and Inter-Parliament Relations;  Strategic Developmen t of Industry and Enterprises;  and Agrarian Policy. 
3 Typically the Government negotiates treatie s based on the President's instructions. WT/TPR/S/170 Trade Policy Review 
Page 22 
 
 
oversight, decision-making is heavily centralized w ith the President.  Legislative power is also 
automatically transferred to the President if  a parliamentary term is terminated early. 
8. The Government, headed by the Prime Minister , is the executive body of state power.  It 
consists of vice-prime ministers, ministers, chairmen of state committees, administrative departments 
and local state administrations.  Government power s include foreign and internal policies, including 
financial, price, tariff, customs, investment, ta x, and trade;  and action plans are developed in 
consultation with the President.  It introduces dr aft economic and other laws to Parliament for 
approval, and along with the National Bank (central bank) is jointly responsible for having unified 
monetary and exchange rate policies. While Parliament  has authority on taxes, when Parliament is not 
sitting or when economic measures against "forei gn states to stabilize unforeseen situations" are 
needed quickly, the Government may temporarily ch ange certain tax rates a nd other obligatory budget 
payments, subject to immediate parliamentary no tification, in "exceptional cases to protect the 
country's economic interests".  These include extrem e inflation growth, a sharp decline in exports or 
weakening of the financial system of the st ate (Law on Government No. 155, October 2005).  
According to authorities this excludes tariff in creases but covers introd uction of contingency 
measures in accordance with domestic legislation.  The authorities indicate this has never happened.  
Amendments to budgetary bills, including introducti on or removal of taxes and related exemptions, 
may only be presented to parliame nt with government consent. 
9. Local self-government involves elected legi slative councils (keneshes) and regional 
governors, who are accountable to the President ( 2002 Law on Local Self-government and Local State 
Administration).  Their powers are subordinate to  the national government and exclude trade policy, 
the sole purview of central authorities.  They have limited taxation powers.  Local governments can 
only impose certain types of taxes and fees at rates set by the national government, and cannot modify 
or withdraw them.  Local governments cannot implem ent trade measures or provide farm subsidies, 
but may submit suggestions to the National Government  on such policies, and can take steps to attract 
investment in their regions.  The Kyrgyz Republic  is divided administratively into seven provinces 
(oblasts ), 40 districts (rayons) , 22 cities (including the capital, Bishkek) and 468 municipalities. 
10. The Constitution guarantees in principle judicial independence.4  However, its independence 
and consistency has been questioned.5  The legal system is based on Roman-German civil law, with 
French and Russian elements.  The hierarchy of statutory acts is:  the Constitution;  laws and 
resolutions;  presidential decrees;  government r esolutions;  National Bank regulations, orders and 
instructions;  instructions, regulations, and orders  of ministries, state committees and administrative 
departments;  and decisions of local state admi nistrations and local self-government bodies (1996 Law 
on Normative Legal Acts).  International treaties,  once ratified by Parliament, and other universally 
accepted principles of international law directly co nstitute domestic legisla tion (Article 12 of the 
Constitution).  International laws take precedence  over domestic legislation and apply in case of 
conflict (Article 6 of the Civil Code). 
(3) TRADE POLICY FORMULATION AND IMPLEMENTATION  
(i) Objectives 
11. The Kyrgyz Republic's general trade policy objectives include achieving a more outward-
oriented trade regime, increasing overseas market a ccess for exports, and integrating more into the 
world economy.  These goals are pursued through multila teral, regional, and bilateral initiatives.  The 
                                                      
4 The Constitutional Court is the highest judicial bo dy, and the Supreme Court, which oversees district, 
city and provincial courts, hears a ppeals on all economic and civil cases. 
5 Resolution of the Removing Barriers to Business Economic Forum, 31 May 2006. Kyrgyz Republic WT/TPR/S/170 
 Page 23 
 
 
Government recognizes the importance of trade and investment liberalization, believing that such 
reforms will improve Kyrgyz economic efficiency a nd help promote export diversification.  Trade 
liberalization was an important component of broade r market reforms introduced early in the country's 
transition, and its trade regime is very liberal re lative to most regional economies and to comparable 
developing countries.6 
(ii) Institutional and legal framework 
12. Trade policy formulation is the joint responsibilit y of the executive and le gislative branches.  
In practice, the President has substantial powers over economic, including trade-related, decisions and 
these appear to have increased through greater in fluence over many key ministries and committees.  
The Economic Policy Council, formed in 2002, ha d been ineffective because the President had the 
major role in initiating policies or delegated a lead ing role to government;  it was terminated in 
March 2006 and the Supreme Economic Policy (SEC) fo rmed in February 2006 to more effectively 
strengthen economic and budgetary pol icy formulation and ministerial coordination.  It operates as a 
consultative-advisory body on economic policy issues, including on programme monitoring and implementation.  The SEC promotes open disc ussion of social-economic problems, economic 
strategies, and development programmes, and prepares proposals for the President and the 
Government.
7 The Coordination Council for Macroeconomic and Investment Policy was also 
established in March 2006.8  Its main objective is to achieve economic developmen t by coordinating 
the adoption of development, macroeconomic, and investment policies, including promoting fiscal 
sustainability and the efficient allocation of resources. 
13. The WTO Inter-Departmental  Commission, formed in 1999 , has been restructured 
(Government Resolutions No. 374, 23 June 2003, and 677, 11 September 2004).  Chaired by the 
Minister of Industry, Trade and Tourism, and consis ting of deputy ministers and heads of all relevant 
ministries and agencies, its main objectives ar e to coordinate multilateral issues, including 
implementation of and conformity with related agre ements, and the preparation of new proposals and 
commitments for governmental approval. 
14. Several ministries and agencies are involved in  formulating and impl ementing trade-related 
policies (Chart II.1).  The main ministry is the Ministry of Industry, Trade and Tourism (MITT), formed in October 2005 from the Ministry of Ec onomic Development, I ndustry and Trade (MEDIT) 
(Government Resolution on Principal Issues Falling W ithin Authority of the Ministries and State 
Committees, October 2005, No. 493).   The MITT maintained most of the trade-related functions 
transferred to the MEDIT when it was established in 2004 from the Ministry of Industry and Trade.
9  
It is responsible for external trade, industry po licy, enterprise development, creating an efficient 
                                                      
6 World Bank (2005b). 
7 The SEC is chaired by the Prime Minister, and consists of the Firs t Vice Prime Minister (the Deputy 
Chairman), Parliamentary deputies, the Chairman of the Board of Chamber of Tax Consultants, the Chairman of 
the Board of the joint stock commercial bank, Tolubai, business representatives, and the Chief Editor of Aki-
Press  magazine (Government Resolution No. 78, 8 February 2006).  
8 The Coordination Council is chaired by the Prime Minister, and consists of the Minister of Economy 
and Finance (Deputy Chairman);   the Minister of Industry, Trade and Tourism;  the Minister of Agriculture, 
Water Resources and Processing Industry;  the Minister of Transport and Communications;  the Minister of Labor and Social Protection;  the Chairman of the Stat e Committee on State Property Management;  the Head of 
Division for Strategic Development and Experts' Examina tion of the President’s Office;  the Director of the 
State Tax Inspectorate;  the Director of  the State Customs Inspectorate;  and the Director of the State Agency for 
Financial Supervision and Reporting (Presidential Decree No. 114, 14 March 2006). 
9 This restructuring significantly expanded the Ministry's role to cover economic and social 
development, external econom ic activity, industry, trade, state supervision over technical regulations, state 
support of business, investment, antimonopoly policy and competition, and corporate governance. WT/TPR/S/170 Trade Policy Review 
Page 24 
 
 
system to attract foreign direct investment, and for adopting market regulatory principles.  The 
MITT's direct trade responsibilities include WTO and regional/bilateral trade and related policies, 
including export growth and cont rols, production of import substitu tes, using tariff and non-tariff 
measures to protect Kyrgyz producers from unfair competition, and technical regulations.  It was 
assigned tourism functions from the State Committee  on Tourism, Sports and Youth Policy.  The 
MITT's economic and industrial development functions  include preparing state development plans, 
participating in privatization progra mmes, and setting investment policies. 
15. However, the MEDIT's economic and invest ment policy formulation functions were 
transferred to the finance ministry, which beca me the Ministry of Economy and Finance (MEF) 
(Presidential Decree No. 513, November 2005).  The MEF is also responsible for structural and 
administrative reforms as well as non-banking sector development.  The State Customs Inspectorate (SCI) administers customs, and collects excise taxes and customs duties or fees on imports (Government Resolution No. 168, April 2005).
10  The State Tax Inspectorate is responsible for 
collecting domestic taxes. 
16. The National Agency for Anti-Monopoly Policy and Competition Improvement (transformed 
from the State Department of Anti-monopoly Polic y in 2005 by Presidential Decree No. 448, 
October) develops anti-monopoly policies and regulates natural and permitted monopolies 
(Chapter III).11  The Centre for Economic and Social Reform s is the state resear ch body for deepening 
economic and social reforms, including trade.12  The National Institute for Standardization and 
Metrology (formerly the State Inspectorate on Standards and Metrology, or Kyrgyzstandard) is the 
national body for standardization and metrology (C hapter III).  The State Agency on Government 
Procurement and Material Reserves administers government procurement. 
17. Other ministries participating significantly in  formulating and impl ementing trade-related 
policies include:  the Ministry of Foreign Affair s; the Ministry of Agriculture, Water Resources and 
Processing Industry; and the Ministry of Transport and Communications (Chapter IV).  The National 
Bank of the Kyrgyz Republic conducts monetary and exchange rate policies, and prudentially 
supervises banks and certain other finance institu tions to maintain financial market stability 
(Chapter IV). 
18. The non-governmental Chamber of Commerce and Industry (CCI) assists in creating the legal 
environment, infrastructure, and other conditions fo r developing entrepreneurship.  It provides trade 
support services, including issuing certificates of origin, providing export market research and 
intelligence, and organizing trade fairs.  The CCI is an important forum for members to express views 
to government on trade and other economic policies.  The private and public sectors also interact 
through formal partnership-orient ed dialogue, and various investment or enterprise meetings and 
industrial forums.  Private groups, including the International Business Council (IBC), Congress of 
Business Associations, and the Bishkek Business Cl ub, actively advocate legal, tax, governance and 
other policy reforms.  The WTO Inter-Departmen tal Commission includes business representatives to 
ensure private interests are reflected in trad e policy development and multilateral negotiations. 
 
                                                      
10 The State Tax Inspectorate (STI) collects other taxes, including local taxes for sub-national 
governments (Government Resolution No. 164, April 2005). 
11 Ministries are core state bodies that function acco rding to specific regulati ons and issue regulations 
or instructions within their compet ence, while state committees and agenci es are established by presidential 
decree as legal public entities, usually under government control.   
12 Trade-related research is also conducted by the Ec onomic Policy Institute, established in 2003 as an 
independent "think tank", and by the private CASE-Kyrgyzstan Centre of Social and Economic Research. Kyrgyz Republic WT/TPR/S/170 
 Page 25 
 
 
 
Chart II.1
Main bodies involved in trade policy formulation and implementation, 2006
Source :   Ministry of Industry, Trade and Tourism.First Deputy Prime Minister
National BankMinistry of Transport 
and CommunicationsMinistry of Economy 
and FinanceMinistry of 
Agriculture, Water 
Resources and 
Processing IndustryMinistry of Industry, 
Trade and TourismMinistry of 
Foreign Affairs
Ministry of Emergency 
Situations and 
EnvironmentInterdepartmental 
Commission on WTOPrime Minister
National Institute for 
Standardization and 
MetrologyMinistry of Justice
State Customs  
Inspection under
 the GovernmentState Tax
 Inspection under
 the Government
 National Statistics 
Committee State Agency for Information 
Resources and Technology 
under the Government National Agency of 
Communicationa
 State Agency for Financial 
Supervision and Reporting State Agency on Government 
Procurement and Material 
Reserves under the GovernmentState Agency for Environmental 
Protection and Forestry under the 
Government State Agency for Architecture 
and Construction under the 
Government
 National Agency for Anti-
Monopoly Policy and 
Competition Improvementa State Intellectual Property 
Agency under the Government State Agency for Geology and 
Mineral Resources under the 
Government
Ministry of Education, 
Science, and Youth 
Policy
Ministry of Health
State Property 
Management Committee
a         According to the new structure these age ncies are directly responsible to the President's Office.
 
 
 WT/TPR/S/170 Trade Policy Review 
Page 26 
 
 
 
19. The legal and institutional frameworks suffer from weak and inconsistent excecution, 
compounded by at times ambiguous and contradi ctory legislation as well as the unclear 
responsibilities of regulatory bodies, which make implementation difficult.  For example, the 
application of the general licensing law continues to be obscured by inconsistencies with numerous 
individual pieces of legislation that  need to be changed.  Moreover, there is a case of unclear 
regulatory responsibilities in telecommunications, follo wing the transfer of many of these functions 
from the National Communications Agency to the Anti-monopoly Agency in 1996 (Chapter IV).  Also, the Government has now decided to restore the State Energy Agency (SEA);  the agency had 
been terminated only in 2005, seemingly back ward move, and its regulatory responsibilities 
transferred to the Anti-monopoly Agency. 
(iii) Main trade laws 
20. As part of its economic transition, many Ky rgyz trade-related and investment laws and 
regulations were revised or introduced to facilita te a market economy.  While the main package of 
legal and institutional arrangements was adopted  upon WTO accession, this legislative process is 
ongoing, and is creating a more stab le and predictable trade regime.  Revised legislation covers key 
trade-related areas, such as customs, enterprise ac tivity, intellectual property, investment, and specific 
sectors, such as banking, insurance, and telecommunications (Table II.1).  Examples include substantial amendments to the 1996 Tax Code in  2000 (a new Code is now pending) and the Civil 
Code, which entered into force in two parts, Ma y 1996 and January 1998;  a new Customs Code in 
2004;  and the 2004 Law on the Fundamentals of Tec hnical Regulation, aimed at meeting the WTO 
rules on technical barriers to trade and SPS measures. 
Table II.1 
Main trade-related legislation, 2006 
Legislation Description Effective date 
Civil Code (especially Part II, Section 5 – "Intellectual Property") Basic legal provisions related to Intellectual Property Rights 01.03.1998 
Law on Patents Patents, terms and c onditions for granting patents 04.02.1998 
Law on Trademarks, Services Marks and 
Appellation of Origin Trademarks, services marks and appellation of origin 28.02.1998 
Law on Copyrights and Neighbouring 
Rights  Copyrights and neighbouring rights 23.02.1998 
Law on Legal Protection of Software and 
Data Bases Computer-based software and electronic data bases 04.04.1998 
Law on Legal Protection of Topology 
and Integrated Circuits Topology and integrated circuits 10.04.1998 
Law on Commercial Confidentiality 
(Secrecy)  Non-disclosure of commerce related information 10.04.1998 
Law on Legal Protection of 
Achievements in (Biological) Selection  Legal protection of biology related se lection works, inventions 26.06.1998 
Law on Services Inventions, Utility 
Models and Industrial Designs Services inventions, utility models  and industrial designs 13.08.1999 
Law on Company Names Definitions of compan y names, legal protection and registration  31.12.1999 
Law on Patent Attorneys Defines patent attorn eys and regulates their rights and obligations  28.02.2001 
Law on Restriction of Monopolistic 
Activity, Promotion and Protection of 
Competition Prevents or limits monopolistic ac tivity and unfair competition 05.04.1994 
Customs Code 2004 (revised version)  Regulates imports and exports, and customs procedures 12.07.2004 
Table II.1 (cont'd) Kyrgyz Republic WT/TPR/S/170 
 Page 27 
 
 
Legislation Description Effective date 
Law on Investments Regulates foreign and dome stic investment; establishes special body 
on investment policy, c ontrol and coordination 27.03.2003  
(last revised 
14.06.2004) 
Law on Plant Quarantine Entry terms and conditions for imported plants Last revised  
02.06.1998 
Veterinary Law Covers veterinary activ ity; scope for state body responsible for 
veterinary inspections, etc. Last revised 
02.06.1998 
Law on Fundamentals of Technical 
Regulation Technical regulations, standards; competent bodies and their 
functions; development and in troduction of standards and 
regulations 01.12.2004 
Law on Regulatory Legal Acts Regulat ory legal acts Last revised  
04.06.2005 
Laws on Anti-dumping, Subsidies and 
Countervailing, and on Safeguards   Application of anti-dumping,  countervailing and safeguard 
measures 31.10.1998 
Tax Code Types of taxes, tax rates,  ands tax procedures Last revised 
20.09.2000 
Law on Customs Tariff for Imported Goods Annual customs tariff for imports 10.03.2005 
Law on Advertising Regulates advertising activity Revised 
25.07.2002 
Law on Natural and Authorized 
Monopolies Regulates natural and authorized monopolies Last revised  
10.12.2004 
Law on Consumer Rights Protection Legal relations be tween consumers and producers, sellers and their 
agents in the course of selling goods or services Last revised  
17.02.2003 
Law on Government Procurement Government proc urement of goods, works and services. 24.05.2004 
Law on Railway Transportation Railroad transportation;   established state controlling body Last revised 
24.06.2003 
Law on Auditing Activity Governs auditing 03.06.1998 
Law on Banking and Banking Activity Bank licensing and regul atory functions of the National Bank Last revised 
27.01.2006 
Law on Tourism Tourist business a nd related activities Last revised 
21.10.2003 
Law on Organising Insurance Rule s on insurance activities 23.07.2003 
Law on Mail Service Regulates mailing service 20.06.2001 
Law on Mailing and Saving System Legal basi s for mailing and savi ng activities 13.08.2004 
Law on Regulation of External Trade 
Activity Regulation on external trade activity 02.07.1997 
Air Law Regulates use of air space 15.04.1994 
Source: Kyrgyz authorities.  
(4) TRADE AGREEMENTS AND ARRANGEMENTS  
(i) World Trade Organization  
21. The Kyrgyz Republic acceded to the WTO on 20 December 1998, less than three years after 
requesting membership (13 February 1996).13  WTO Agreements are part of domestic law, but in 
some cases have also been incorporat ed directly into separate legislation.14  Individuals may therefore 
                                                      
13 It is also a member of the World Bank (1993), the IMF (1992), the European Bank for 
Reconstruction and Development (1992) and the Asian Development Bank (1994).  It is also among the seven 
low-income participating countries in the CI S7 Initiative sponsored by these institutions. 
14 WTO Agreements were ratified under a single act in accordance with the Law on Ratification of the 
Protocol on Kyrgyz Republic's Accession to the Marr akesh Agreement Establishing  the WTO, November 1998. WT/TPR/S/170 Trade Policy Review 
Page 28 
 
 
invoke WTO rules in the courts.  The Government  recognizes the importance of an effective rules-
based trading system. 
(a) Participation 
22. The Kyrgyz Republic agreed upon WTO accession to  bind all tariffs by 2005 (Chapter III);  it 
also bound other import charges at zero.  It comm itted to eliminating all tax incentives based on 
exports under the pre-September 1997 foreign in vestment legislation by end-2002, and bound 
agricultural export subsidies immediately at zer o.  Other commitments included eliminating 
discriminatory excise taxes on imports and any incons istent trade-related investment measures, and 
applying the customs valuation and related provision s.  In services, the Kyrgyz Republic made GATS 
commitments in 138 sectors, including basic teleco mmunications and financial services (Chapter IV).  
It participated in the WTO Ministerial Declar ation on Trade in Information Technology Products 
(ITA) (Chapter III). 
23. The Kyrgyz Republic is negotiating signature of the Agreement on Government Procurement 
(GPA) in line with accession commitments (Chapter III).  It also agreed at acc ession to join, within a 
"reasonable" time period, the WTO plurilateral Agre ement on Trade in Civil Aircraft.  While the 
Government decided to join this Agreem ent in 1998 (Government Resolution No. 533, 
12 August 1998), it has not done so, but according to authorities is still committed to becoming a 
signatory.  The Kyrgyz Republic's WTO notifications  cover mainly anti-dumping, customs valuation, 
subsidies and countervailing measures, intellectua l property, and regional arrangements on goods 
(Table II.2);  26 notifications were  outstanding (as at September 2005).15 
24. The Kyrgyz Republic has not been involved in any WTO dispute.  WTO Members account 
for about two thirds of Kyrgyz merchandise exports (including gold).  Most trade disputes involve 
non-WTO members. 
Table II.2 
Latest notifications by the Kyrgyz Republic under WTO Agreements, March 2006 
WTO Agreement Description of requirement Periodicity Document symbol of most recent 
notification  
Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement) 
Article 18.5 Laws and regulations Once by March 1995, then 
changes G/ADP/N/1/KGZ/1, 
18 August 1999 
Article 16.4 Anti-dumping actions take n Semi-annual G/ADP/N /65/Add.1/Rev.6, 
25 November 2005 
G/ADP/N/105/Add.1/Rev.1, 
16 April 2004 
Article 16.5 Notification of domestic 
procedures and authorities 
competent to initiate and conduct 
investigations Once, then changes G/ADP/N/14/Add.19, 
20 October 2004 
Agreement on Agriculture  
Article 18.2 Domestic support  Annual G/AG/N/KGZ/1, 4 November 1999 
Agreement on Implementation of Article VII of  the GATT 1994 (Agreement on Customs Valuation) 
Article 22 Laws and regulations Once, th en changes G/VAL/N/1/KGZ/1, 3 November 
2000 
Table II.2 (cont'd)
                                                      
15 WTO (2005). Kyrgyz Republic WT/TPR/S/170 
 Page 29 
 
 
WTO Agreement Description of requirement Periodicity Document symbol of most recent 
notification  
Decisions A.3 and A.4 
Concerning the Interpretation 
of the Agreement on Customs 
Valuation   G/VAL/N/3/KGZ/1, 5 April 2000 
Decision on the Checklist of 
Issues (G/VAL/5) Checklist of issues/questionnaires 
(replies) Once only G/VAL/N/2/KGZ/1, 15 March 2000 
Agreement on Import Licensing Procedures 
Article 1.4(a) and 
Article 8.2(b) Laws and regulations Once only G/ LIC/N/1/KGZ/1, 18 January 2000
Agreement on Preshipment Inspection 
Article 5 Laws and regulations On ce only G/PSI/N/1/Add.9, 21 March 2001 
Agreement on Rules of Origin 
Article 5 and Annex II, 
paragraph 4 Laws and regulations (rules of 
origin in effect) Once only G/RO/N/39, 22 April 2003 
Agreement on Safeguards 
Article 12.6 Laws and regulations Once by March 1995, then 
changes G/SG/N/1/KGZ/1, 18 August 1999 
General Agreement on Trade in Services 
Article III.3 Laws, regulations and 
administrative guidelines Changes promptly and at least 
annually S/C/N/228, 19 February 2003 
Agreement on Subsidies a nd Countervailing Measures 
Article 25.2 Enquiry points Once only G/SCM/N/18/Add.21, 
25 October 2005 
Article 32.6 Laws and regulations  Once by March 1995, then 
changes G/SCM/Q1/KGZ/3, 10 May 2000 
Article 25.11 Countervailing ac tions taken Semi-annually G/SCM/N/81/Add.1/Rev.4, 
27 April 2004 
Agreement on Technical Barriers to Trade 
Annex 3C Acceptance of the Code of Good 
Practice Once only G/TBT/CS/N/122, 17 August 2000 
Article 15.2 Implementation and 
administration measures Once only G/TBT/2/Add.59, 16 March 2000 
Trade-Related Investment measures  
Article 6.2 Publications in which TRIMs may 
be found Ad hoc G/TRIMS/N/2/Rev.9, 
28 September 2001 
 
Agreement on Trade-Related Aspect s of Intellectual Property Rights 
Article 63.2 Laws and regulations 
 
 
 
  
 
   
Checklist of Issues on 
Enforcement Once, then changes 
 
 
 
  
 
   Once only IP/N/1/KGZ/C/2/Add.2, 
IP/N/1/KGZ/C/3/Add.1, 
IP/N/1/KGZ/C/4/Add.1, 
IP/N/1/KGZ/I/2/Add.1, 
IP/N/1/KGZ/I/3/Add.1, IP/N/1/KGZ/L/1/Add.1, 
IP/N/1/KGZ/P/1/Add.1, 
IP/N/1/KGZ/P/2/Add.1, 2 March 2005  IP/N/6/KGZ/1, 5 July 1999 
Article 69 Contact points  Once, then changes IP/N/3/Rev.7, 19 August 2003 
Decision on Notification Procedures for Quantitative Restrictions  
BISD 31S/12 Quantitative restrictions Biennially G/MA/NTM/QR/1/Add.7, 
16 June 2000 
General Agreement on Tariffs and Trade 1994 and Understanding on  the Interpretation of Articl e XXIV (Regional Arrangements) 
Article XXIV:7(a) Changes to regulations concerning 
goods arising from trade 
agreements  Once, then changes WT/REG114/N/1, 4 January 2001 
Source:  WTO Central Registry of Notifications.  WT/TPR/S/170 Trade Policy Review 
Page 30 
 
 
(b) Trade negotiations 
25. The Kyrgyz Republic supports the Doha Developm ent Agenda;  it has participated mainly in 
the areas of services, market access for non-agricultur al goods, and agriculture.  It believes that 
improved rules on contingency measures are necessar y, taking into account the special needs of 
developing countries.16  Better operation of special and differe ntial treatment for developing countries 
is also seen as a priority.  The Kyrgyz Repub lic seeks recognition as a newly acceding developing 
WTO Member that has made extensive market  access commitments and should receive equal 
treatment to the Members referred to in the 2001 Doha Declaration (paragraph 9).17  It requests 
special flexibility in both non-agricultural market access and agricultural negotiations for small low-
income recently acceding economies.18  It supports International Development Association  countries 
being exempted from further agricultural reduction commitments, and a new special safeguard mechanism for farm products to address emergenc y situations arising from import surges and sharp 
price falls.
19  As a member of the Group of Landlocked Developing WTO Countries, the Kyrgyz 
Republic also supports the importance of the WTO Work Programme on Small Economies and a 
"development box" to provide tariff- and quota-fr ee access for exports, and the need for effective 
trade facilitation, including expedited cust oms and transit procedures to access ports.20  In services, it 
especially seeks liberalization of mode-4 related services, tourism, and maritime transport.  The Kyrgyz Republic sees providing developing countri es adequate technical assistance and capacity 
building as a priority.
21  As a landlocked country, the Kyrgyz Republic has also closely followed 
negotiations on transit arrange ments to facilitate trade.22 
26. At the Hong Kong Ministerial Conference in December 2005, the Kyrgyz Republic requested 
equal treatment as a least developed country in  adopting new commitments, and as a landlocked 
low-income developing country comparable to many  least developed countries sought to also benefit 
from specific provisions included in the market access negotiations.23  It emphasized that agriculture 
liberalization, a key element of the negotiations , should be fair and progressive, and reflect the 
interests of small vulnerable transition economies that  have made liberal trade obligations.  It also 
called for significant improvements in non-agri cultural market access.  The Kyrgyz Republic 
supported strengthening the TRIPS Agreement by ensu ring clear and predictable rules on protection 
of geographic indicators for non- alcoholic products, and efforts to promote trade facilitation. 
(ii) Regional and other arrangements 
27. The Kyrgyz Republic's two-pronged approach to  liberalization has embraced multilateralism 
and regionalism.  It believes that regional trade ag reements significantly assist developing countries to 
solve short-term problems and to integrate globally.24  It has actively pursued trade arrangements, 
largely with former soviet states, as free-trade agre ements (FTAs) or customs union.  The plethora of 
preferential agreements comprise principally two groups:  CIS-wide agreements (e.g. CIS FTA);  and bilateral or regional agreements with CIS memb ers, such as the EuroAsian Economic Community 
                                                     
 
16 WTO document WT/MIN(03)/ST/65, 12 September 2003. 
17 WTO document WT/MIN(03)/W/3, 26  August 2003.  The particular  concerns of recently acceded 
members are to be addressed effectively in the Doha negotiations through specific flexibility provisions (WTO, 
"July Package", 1 August 2004).   
18 WTO documents TN/MA/W/56/Rev.1, 6 July 2005, and TN/AG/GEN/10, 29 June 2005. 
19 WTO document TN/AG/GEN/5, 29 July 2003. 
20 WTO document WT/MIN(03)/W/23, 14 September 2003. 
21 WTO document TN/TF/W/74, 10 November 2005. 
22 WTO document TN/TF/W/133, 10 July 2006. 
23 WTO document WT/MIN(05)/ST/155, 17 December 2005. 
24 WTO document WT/MIN(03)/ST/65, 12 September 2003. Kyrgyz Republic WT/TPR/S/170 
 Page 31 
 
 
(EAEC), which is the most important in terms of economic policy dialogue (especially since 
Uzbekistan now intends to sign).  Thus, it is tied into CIS through a complex architecture of 
agreements.25  China is the only neighbour with which Ky rgyz has no FTA.  Several potential trade 
arrangements, including the Economic Cooperation Organization (ECO) and the Organization of the 
Islamic Conference (OIC), have non-CIS parties, although the Kyrgyz Republic is not currently 
participating in these FTA initiatives. 
28. Participation in multiple preferential trading agreements adds uncertainty to the Kyrgyz 
Republic's trade regime.  It is negotiating thr ee potential customs union (CIS, excluding Ukraine, 
EAEC, and CACO);  only EAEC is operating and ma king any real progress, and all members are CIS 
states (Table AII.1).26  There are also recent initiatives to integrate CACO into EAEC.  The Kyrgyz 
trade regime is further complicated by the array of regional and bilateral FTAs covering nine CIS 
states (six at the time of accession).27  This creates a complex patchwork of trading arrangements, 
with varying levels of progress and different rule s, coverage, and implemen tation periods.  This 
weakens the transparency of its  trade regime at a time of scarce human resources and capacity 
bottlenecks when it is also focusing on multilateral li beralization.  While Kyrgyz has no intention of 
integrating or rationalizing membership in these ag reements, it recognizes that ECAC developments 
may affect some FTAs.28  However, these implications remain  unclear given that ECAC negotiations 
are unfinished and its members are in a process of WTO accession of members.    
29. All trading partners linked to the Kyrgyz Republic by formal trade agreements, except 
Armenia, Georgia and Moldova, are non-WTO members,  but the Russian Federation and others are in 
the process of accession.29  Bilateral FTAs with Belarus, Azerba ijan, and Tajikistan, and the expanded 
membership of the Economic Cooperation Organiza tion (ECO), including of the Kyrgyz Republic, 
have not been notified to the WTO.30  According to the authorities, the Kyrgyz Republic will notify 
these three bilateral FTAs to the WT O in the near future.  The EAEC is the only customs union it is 
negotiating that has been notified to the WTO (the CIS and CACO customs unions have been 
inactive).31 
                                                      
25 Over half of Kyrgyz trade is  conducted with FTA partners, especially EAEC members, which 
account for over 50% of non-gold exports (the Russian Federation and Kazakhstan are the most important).   
26 Excluding the envisaged OIC Islamic Common Market , Kazakhstan and Tajikistan  also belong to all 
three proposed customs union;  Uzbekistan to two (CIS and CACO), the Russian Federation and Belarus to two (CIS and EAEC);  and Turkmenistan and Azerbaijan to one (CIS). 
27 Kyrgyz bilateral FTAs cover eight of the CIS customs union members and nine of the regional CIS 
FTA members.  This web of bilateral FTAs, with frequent changes in rules and coverage, hampers transparency and consistent implementation, and makes evaluating their impact difficult (World Bank, 2005b).  Customs 
union members negotiating separate FTAs also raises th e difficulty of preventing preferential imports entering 
other customs union members.   
28 WTO document WT/REG73/4/Add.1, 11 May 2001, p. 2. 
29 Afghanistan, Azerbaijan, Belarus,  Kazakhstan, Tajikistan, Ukraine,  and Uzbekistan are also acceding 
to the WTO. 
30 The Kyrgyz Republic notified the FTA with Armeni a to the WTO in December 2000, and the rest in 
June 1999.  The CIS FTA was notified by the Kyrgyz Republic in June 1999 (WTO document WT/REG82/N/1, 1 October 1999).  The original ECO Agreement was notified in 1992 under the Enabling Clause, but not the 
accession of new members nor the implementation of EC OTA, which the Kyrgyz Republic has not signed.  
31 Georgia joined in December 1993.   It was notified in April 1999 (WTO document WT/REG71/N/1, 
21 April 1999).  WT/TPR/S/170 Trade Policy Review 
Page 32 
 
 
(a) Regional arrangements 
Commonwealth of Independent States (CIS) 
30. The CIS, established in December 1991, comprises the Kyrgyz Republic and ten other 
members, covering all former Soviet re publics except Ukraine and the Baltic states.32  Its Alma-Ata 
Charter, adopted in January 1993, provides for e qual independent sovereign states and calls for a 
common economic space and common European and Eu rasian markets, based on the free movement 
of goods, services, capital, labour, and an open custom s policy.  The CIS has no supranational powers.  
Political, economic, and foreign policy coordination is  the responsibility of coordinating institutions, 
especially the Councils of Heads of State and Heads of Government, the Inter-Parliamentary 
Assembly, and the Economic Council.  The Economic  Court resolves economic disputes;  however, 
despite numerous disputes among parties, no singl e economic case has been referred to it. 
31. In September 1993, CIS members signed the Agreement on the Creation of the Economic 
Union, a common economic space based on the free movement of goods, services, workers, and 
capital, and concerted policies on money, credit, tax,  price, and customs.  They also adopted the 
Program of actions on CIS developmen t and Plan of realization of important measures, directed at the 
development and increased effectiveness of CIS economic cooperation durin g 2003-10.  However, 
progress has been slow and priority has shifted to creating a transitional CIS free-trade area to facilitate the Economic Union's eventual creation.   While the CIS charter has been implemented 
weakly, bilateral/regional agreements with certain CI S states appear to have worked better, and they 
attempt to implement the charter progressively. 
Free-trade agreement between CIS states (CIS FTA) 
32. The CIS FTA was signed in April 1994 and applied provisionally until ratified.
33  
Amendments in April 1999 (effective for the Kyrgyz  Republic from February 2000) were aimed at 
deepening provisions and accelerating formation of the FTA (Protocol on Amendments and Supplements to the Agreement on the Creation of a Free Trade Area).  They called for the gradual 
removal of tariffs and export taxes, export and import quotas, and other trade barriers, including on 
services;  coordination of economic policy, especially in industry, agriculture, transport, finance, and 
development of fair competition; and harmonization of legislation, such as technical requirements and 
customs procedures.
34  It also provided for the cessation of discriminatory domestic taxes on imports 
and export as well as subsidies that violate fair co mpetition.  Imports are assured no less favourable 
treatment than similar domestic goods.  A side ag reement covers unificati on and simplification of 
customs procedures.35  Services disciplines are weak;  me mbers are to mutually seek "gradual 
                                                      
32 The initial treaty was signed by the Russian Federatio n, Belarus and Ukraine, joined by other original 
members:  Azerbaijan (which ratified membership in 1993), Armenia, Kazakhstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan.  However, while Ukraine pa rticipates in the CIS, it has not ratified the Charter 
and is therefore an observer.   
33 It entered into force in December 1996 for all co untries except Tajikistan (ratified in May 1997) and 
Georgia, which although still to ratify the Agreemen t has applied it provisionally since 15 April 1999 .  Ukraine, 
although a CIS observer, is a member of the CIS FTA.  While Turkmenistan is not a member of the CIS FTA, it 
applies it temporarily.  The Kyrgyz Republic therefor e extends the free-trade regime to Turkmenistan. 
34 Exports of essential goods may be restricted if in short supply domestically. 
35 Agreement Between the Government s on the Procedures of Custom s Clearance and Customs Control 
Over the Goods Transferred Between Member States to  the Free-trade Area Agreem ent, October 1999.  It 
covers unified customs declaration forms, rules, and control-related documents, and entered into force for the 
Kyrgyz Republic on 25 August 2000 (Government Resolu tion No. 473, 7 August 2000).  It has recently 
finalized the internal procedures necessary for the agreement to become effective.  Kyrgyz Republic WT/TPR/S/170 
 Page 33 
 
 
cancellation" of restrictions and to determine liber alization priorities.  A separate CIS agreement on 
trade of services never eventuated.  The CIS Economic Court handles disputes. 
33. Initial exceptions on the removal of customs du ties, taxes, levies, and quotas were to be 
agreed within six months of the CIS FTA's entry in to force, subject to agreement on a common list of 
goods and transitional arrangements.  Ho wever, these were  never negotiated.36  Under the CIS FTA, 
members could adopt any exceptions existing under bilateral FTAs.  Since the Kyrgyz Republic 
applied no exceptions under existing bilateral FTAs,  it has maintained no trade restrictions on trade 
with any CIS state.37  Kyrgyz exports to CIS states are subject to a mostly free-trade regime, except 
for Turkmenistan.   
34. Contingency measures may be imposed, including provisionally, if imports cause (or 
threaten) damage, subject to "appropriate investigations".38  Members can also impose special trade 
measures on each other (Article 13(a)), but the Kyrgyz  Republic has not done so.  The CIS FTA calls 
for national and MFN treatment on imports rega rding technical and quality requirements, and 
encourages cooperation on standardization and cer tification requirements (Chapter III).  Transit 
conditions, including transportation ch arges, should observe the principle of "free transit", not be 
subject to "groundless delays or restrictions",  and be non-discriminatory (Chapter IV).   
35. The CIS FTA established a two-stage dispute se ttlement framework involving consultations 
and the Inter-State Economic Committee.  Dis putes may also be settled through international 
arrangements.  Membership is no longer restricted to CIS states. 
EurAsian Economic Community (EAEC) 
36. The EAEC developed from a customs union betw een the Russian Federation and Belarus in 
January 1995 Kazakhstan joined soon after, fo llowed by the Kyrgyz Republic in March 1996.39  
Tajikistan joined in February 1999.40  Later in February, the five CIS members signed the Agreement 
on Customs Union and Common Economic Area (ratifie d by the Kyrgyz Republic in January 2000).  
Uzbekistan intended to join the agreement in mi d-2006.  The Kyrgyz Republic has no tariffs, import 
(including tariff) quotas, export taxes or quotas on intra-EAEC trade.41  The EAEC envisages deeper 
integration than other CIS agreem ents, and covers the Kyrgyz Repub lic's main trading partners and 
immediate neighbours, except for China.  
37. The EAEC treaty, signed in October 2000, entered into force in May 2001.  It aims to create 
common external policies, tariffs, customs, prices, and other components of a customs union and common market, such as a single currency, harmonization of national legislation, uniform foreign 
investment regimes, and joint transport and power markets.  The EAEC operates under the Interstate 
                                                     
 
36 These lists were replaced in the Protocol by th e intention to establish a free-trade area without 
restrictions and exceptions (WTO document WT/REG82/4, 3 January 2001).  Members were not to apply new 
import or export quotas, or tariffs, and to agree bilaterally within 12 months to phase out any trade restrictions.    
37 WTO document WT/REG82/3, 27 September 2000.  While exceptions existed under bilateral FTAs 
with the Russian Federation and Uzbekistan, covering mainly goods subject to export taxes, export and import 
licensing, and quotas, these were never applied.  
38 This means "significant" damage or threat of to a branch of the economy or a "serious barrier" to 
development.  Contingency provisions  are "generally patterned" on WTO ru les according to Kyrgyz authorities, 
with the FTA providing general principles while leaving members to specify details in domestic legislation (WTO document WT/REG82/3, 27 September 2000, p. 5). 
39 The agreement, provisionally applied from the date  of signature, came into force in October 1997. 
40 Moldova, Armenia, and Ukraine are observers. 
41 WTO document WT/REG71/4/Rev.1, 1 December 2000, pp. 2-3. WT/TPR/S/170 Trade Policy Review 
Page 34 
 
 
Council, the Integration Committee, an Inter-Par liamentary Assembly, and a Community Court to 
resolve disputes.  Membership is open to non-CIS states. 
38. Members are to determine under separate agreemen ts the time frames for forming the customs 
union based on non-discrimination, the "mutual profit" principle, and openness.  Its main objectives 
are to have an efficient common domestic market for goods, services, capital, and labour;  coordinated 
tax, money, credit, foreign exchange, financial, trad e, customs, and tariff policies;  single transport, 
energy, and information systems;  and a common state support system to develop priority industries and technological cooperation.  Anti-competitive st ate aid is seen as incompatible, unless related to 
the social and economic development of poor regions or to correct a "serious economic disturbance". 
39. The EAEC currently operates as a free-tr ade area, based without exceptions, on:   no tariffs or 
import quotas;  a single indirect tax system, with taxes on exports and imports not to exceed domestic rates and application of the destination principle to exports (Chapter III);  removal of competition 
restrictions affecting trade;  and mutual non-app lication of restrictive fiscal measures discriminating 
against imports.  Tariff and non-ta riff regulations are also to be harmonized, including with third 
countries, along with indirect taxation and fore ign exchange measures (Agreement on Unified 
Measures of Non-Tariff Regulation in the Period of Forming the Customs Union, 1997).  Contingency 
measures are allowed against members.
42  A common services market is to be developed by gradually 
improving market access.43  A common agricultural policy is to be implemented, based on food 
security and the sector's special characteristics.  According to Kyrgyz authorities, several EAEC 
members, especially Uzbekistan, have introduced non- compliant restrictive measures on its exports.    
40. Members are to establish a Common Customs Tariff (CCT) through separate agreements 
(Agreement on Common Customs Tariff, 2000);  e ach will determine a list of sensitive products 
during the transitional period and set its own rates.44  The agreement came into force in 2000 for 
Belarus, the Russian Federation, the Kyrgyz Republ ic, and Tajikistan, and 200 1 for Kazakhstan.  The 
CCT was to be implemented in stages over a five -year period (i.e. by 2005 or 2006), but may be 
prolonged for up to five years by mutual agreement.45  It was more recently agreed that the 
Kyrgyz Republic would be in the third stage of formation of the CCT, thereby providing it with more 
implementation flexibility.46  According to the authorities, the Kyrgyz Republic intends to join the 
CCT after WTO accession of other EAEC members.   
                                                      
42 All members provisionally applied the protocol on Mechanism of Applying Safeguards, Anti-
dumping and Countervailing Measures in Trade of th e Customs Union Members, signed in February 2000, 
subject to ratification by members.  Th e Kyrgyz Republic ratified this protocol in May 2000.  Measures are to be 
applied without discrimination to members and non-members  for a period necessary to remove damage, and are 
"generally patterned" on WTO rules.  
43 Work on the Agreemen t on Trade in Services has ceased temporarily. 
44 Sensitive goods are those of social importance produced in insufficient quantities, or produced 
domestically that require impo rt protection.  Each list should not exceed 15% of the country's total imports in 
the previous year, except for Tajikistan where alumina is the only sensitive product, imports of which should not 
exceed 25%.  The list of se nsitive goods submitted by the Kyrgyz Repub lic covers a wide range of products, 
including poultry (fresh, chilled or froz en), seed potatoes, non-decaffeinat ed coffee, tea, durum wheat, rice, 
wheat or meslin flour, crude soybean oil, margarine, me at and fish preparations, sugar, certain organic and 
inorganic chemicals, pharmaceuticals, fe rtilizers, paints, printing inks, rubb er, paper and pape r products, silk, 
wool and cotton fabrics, carpets, iron and steel, mechani cal appliances, electrical machinery, motor vehicles, 
and medical equipment (WTO document WT/REG71/6/Add.1, 11 May 2001). 
45 WTO document WT/REG71/4/Rev.1, 1 December 2000, p. 3.  The CCT would have to be changed 
prior to WTO accession of EAEC members if  they negotiated lower tariff bindings. 
46 Agreement of a Common Customs Tariff of EAEC Members, 33rd meeting of the Commission of 
Permanent Representatives , 10-11 November 2005. Kyrgyz Republic WT/TPR/S/170 
 Page 35 
 
 
41. The Basic CCT List was taken from the common tariffs for Belarus, Kazakhstan, and the 
Russian Federation at the time of signing the CCT Agreement, subject to further amendments and 
remaining tariff lines being set later by each member.47  The Basic CCT List has harmonized rates on 
54% of tariff lines.48  Since many Kyrgyz tariffs differ from the basic rates, it is integrating into the 
CCT gradually.  The harmonization process to impl ement the CCT is evolving taking into account the 
WTO accession progress of EAEC members.  Some 31% of Kyrgyz tariff lines coincided with base 
CCT rates in 2006;  while up from 23% in 2002 this  is below the 2003 level of 33%, and remains the 
lowest level of harmonization among members.    
42. The proposed EAEC tariff structure suggests th at meeting its CCT commitments may raise 
Kyrgyz tariff protection.49  The simple average applied MFN ta riff rate will increase from 7.4% to 
10.4% (based on 2003 tariffs).  Average manufacturing tariffs will rise most (from 3.2% to 9.7%), because unlike the Russian Federation, Kyrgyz h as relatively low rates on non-produced goods e.g. 
motor vehicles and alcohol.  Increasing protection may not be in the Kyrgyz Republic's economic interests (possibly reducing national welfare).
50  Since many of its bound rates are below the proposed 
EAEC levels, adopting the CCT may also adversely affect its WTO commitments.   
43. The Agreement on Regulation of Market Access Between Custom Union Member States and 
Services From Third Parties was signed in Octobe r 2000, and ratified by the Kyrgyz Republic in 
May 2001.  It allows each member to restrict trade involving third countries but the Kyrgyz authorities indicated that it does not apply such measures.  
Central Asian Cooperation Organization (CACO) 
44. The Kyrgyz Republic signed a treaty with Kaza khstan and Uzbekistan in April 1994 to create 
a single economic space, the Central Asia Ec onomic Community.  Tajikistan joined in 1998.
51  I n 
February 2002, the Community was transformed in to the Central Asian Cooperation Organization, 
and the treaty to establish it was adopted.52  The Russian Federation acceded to CACO in 2005.  
Efforts are directed at providing legal and econom ic conditions for creati ng a single economic space, 
including deepening direct economic relations, st rengthening industrial cooperation and allowing 
coordinated policies in key areas like transport, communications, and sharing water-energy resources. 
45. The creation of a common economic space was reaffirmed at the Astana Summit in 
December 2002.  At the CACO Summit in October 2004, Uzbekistan proposed the formation of the Central Asian Common Market, and in February 2005 Kazakhstan suggested that a Central Asian 
Union based on the EU be established.  However,  it was decided in October 2005 that the CACO 
should be integrated with the EAEC.
53 
Economic Cooperation Organization (ECO) 
46. The ECO was formed in 1985 by Iran, Pakist an, and Turkey;  it is aimed at promoting 
economic, technical, and cultural cooperation, and pr ovided for very limited tariff preferences (Treaty 
                                                      
47 WTO documents WT/REG71/4/Rev.1, 1 December 2000, p. 2;  WT/REG71/6, 3 January 2001.  The 
CCT Agreement also established two lists of tariff items where the difference in rates among members was more than or less than 5% in order to further harmonize external rates. 
48 WTO document WT/REG71/8, 12 March 2004, p. 3. 
49 Tumbarello (2005). 
50 World Bank (2005b). 
51 The Russian Federation, Georgia, Turkey, and Ukraine became observers in 1996. 
52 Kazakhstan was the first member to ratify the Treaty in February 2004.   
53 Board of Heads of CACO Members, 6 October 2005.    WT/TPR/S/170 Trade Policy Review 
Page 36 
 
 
of Izmir).  In 1992, the Kyrgyz Republic joined  along with Afghanistan, Azerbaijan, Kazakhstan, 
Tajikistan, Turkmenistan, and Uzbekistan, and a revised Treaty of Izmir was signed in 1996.54  Its 
main objective is to promote intra-regional trade by progressively removing trade barriers.  Trade 
liberalization has been directed mainly at reduc ing tariffs, and removing para-tariffs (including 
discriminatory indirect taxes) and non-tariff barriers (NTBs).   
47. The ECO Trade Agreement (ECOTA), was signe d in July 2003 by Afghanistan, Iran, 
Pakistan, Tajikistan and Turkey (onl y Tajikistan has ratified it);  it calls for progressive elimination of 
NTBs and tariff rationalization, based on a fast track approach for its early implementation from January 2004.
55  The Dushanbe Declaration adopted in September 2004 welcomed the finalization of 
ECOTA, which excludes services, and urged other members join to establish a free-trade area by 2015 
as a priority.  The ECO Vision 2015, adopted in Oct ober 2005, reaffirmed this commitment, aimed at 
raising intra-regional trade from 6% to 20%.  Howe ver, the authorities indicated that the Kyrgyz 
Republic had no intention of signing ECOTA. 
Organization of the Islamic Conference (OIC)  
48. The Kyrgyz Republic joined the OIC in December 1992.  The OIC promotes economic 
cooperation among its 57 members, including Ky rgyz neighbours Afghanistan, Azerbaijan, 
Kazakhstan, Tajikistan, Turkmenistan, and Uzbekist an (Table AII.1).  The OIC goals are for equal 
and non-discriminatory commercial treatment in foreign trade among members and enlarged trade through bilateral or multilateral trade arrangements,  with special consideration for least developed 
states.   
49. OIC members have consistently reiterated by reso lution, the latest in October 2003, the urgent 
need to take practical steps to ensure economic  integration among members, so as to ultimately 
establish on a step-by-step basis an Islamic Co mmon Market or any other form of economic 
integration.
56  The Framework Agreement on the Trade Preferential System Among OIC Member 
States came into force from 2004.  The 16 participating countries ratified the Protocol on the Preferential Tariff Scheme for TPS-OIC (PRETAS), thereby allowing negotiations to commence in 
early 2004.
57  The Kyrgyz Republic has not signed the Framework Agreement or the Protocol, and 
according to authorities has no intention of doing so.58   
                                                      
54 It has entered into force, but is not yet ratified by Afghanistan, Turkmenistan, and Uzbekistan.   
55 WTO Members of ECOTA have agreed to extend MFN treatment on tariffs, para-tariffs and non-
tariff barriers and intellectual property protection to non-WTO members.   Members agreed not to raise tariffs or 
apply new para-tariffs without the Cooperation Council's consent, to reduce tariffs to a maximum 15% within 
eight years (15 years for Afghanistan), and to abolish para-tariffs within two years.55  Members provisionally 
agreed to further reduce the highest tariff to 10% wi thin five years instead of eight in January 2004. 
56 Resolution No. 8/10-E, "On Need for Enhancement of Economic Relations Among Member States in 
the Light of Current Developments in the World Economy", adopted by the Tenth Session of the Islamic 
Summit Conference, Malaysia, October 2003.  The objectiv e of establishing the infrastructure to create an 
Islamic Common Market was adopted at the Tehran Summit in December 1997. 
57 The members are Bangladesh, Came roon, Egypt, Guinea, Iran, Jordan, Lebanon, Libya, Malaysia, 
Pakistan, Senegal, Syria, Tu nisia, Turkey, Uganda, and the United Arab Emirates.    
58 Base tariff rates for reductions under PRETAS are those applied as of October 2003.  No products, 
including agricultural goods, are speci fically excluded.  Members are require d to identify 7% of HS tariff lines 
with base rates above 10% for reduction in four annual instalments (six for least developed members after a three-year grace period);  tariffs above 25%, 15%, and 10 % are to be lowered to these levels.  An alternative 
voluntary Fast Track Tariff Reduction Programme provides for the reduction of all tariffs except those on a 
negative list of items, which is not to exceed a certain sh are of a member's total tariff lines, and 30% for least 
developed countries.  Margins of preference are to be increased to 50% over five annual instalments (seven for Kyrgyz Republic WT/TPR/S/170 
 Page 37 
 
 
Shanghai Cooperation Organization 
50. This was established in June  2001 between the Kyrgyz Republic and China, the Russian 
Federation, Kazakhstan, Ta jikistan, and Uzbekistan.59  A Memorandum on Trade and Economic 
Cooperation was signed in 2001. 
(b) Bilateral arrangements 
FTAs with selected CIS states 
51. Since the CIS FTA, the Kyrgyz Republic has continued to sign bilateral FTAs.  It has FTAs 
with the Russian Federation (entered into fo rce in March 1993), Armenia (October 1995), Moldova 
(November 1996), Ukraine (December 1997), Kazakhstan (November 1995), Uzbekistan 
(March 1997), Belarus (17 March 2000), Tajikis tan (December 2001), and Azerbaijan, which 
operated provisionally after signature in January  2004 until ratified by the Kyrgyz Republic in 
March 2006.60  The Kyrgyz Republic maintains no customs duties or equivalent charges, import 
(including tariff) quotas or export measures (taxes or quotas) on trade with these countries;  it agreed 
not to introduce any under the CIS FTA. 
52. The FTAs generally have the same structure, commitments, coverage, and escape clauses.  
They provide for the elimination of customs duties,  taxes and similar charges, and quotas (export and 
import).  Any exceptions are to be determined th rough domestic legislation, and subject to MFN 
treatment.  They do not provide for common standard s or mutual recognition certificates.  Import or 
export quotas and other "special restrictions" ma y be introduced unilaterally within "reasonable 
limits" in cases of a critical balance-of-payments deficit or an acute deficit of the product 
domestically, or if mutually agreed (this last  possibility is no longer permitted under the CIS FTA 
standstill provisions).  Free transit on terms no "worse"  than domestic operators is to be provided and 
transport transit charges are to be "economically substantiated".61  The FTAs contain no specific 
provisions on contingency measures, and unfair business practices, such as enterprises using a dominant market position to restrict competition, are considered incompatible.  The FTAs exclude 
services.  
53. The FTAs are not generally rules-based and c ontain weak disciplines, lack enforcement 
mechanisms, and provide for relatively easy de facto opt-outs from obligations.
62  They tend to be 
shortened versions of the CIS FTA , and apply many of the same provisions.  For example, while they 
contain no reference to contingency measures, affect ed states try, usually successfully, to apply CIS 
FTA provisions.  At present, the Kyrgyz Republic does not apply any such measures.  The FTAs also 
adopt the CIS FTA rules of origin.  The authoriti es indicated that in the case of differences between 
bilateral FTAs and the CIS FTA the provis ions of the latter would prevail.   
54. The Kyrgyz Republic has raised several conf licts with neighbouring countries under these 
arrangements at bilateral Intergovernmental  Commissions.  These include the imposition by 
Uzbekistan of discriminatory excise taxes on imports and of tariffs by Azerbaijan. 
                                                                                                                                                                     
least developed countries), except for exports from leas t developed countries, which will rise to 50% over 
three years. 
59 The forerunner was the "Shanghai 5", which started in 1996.  Uzbekistan joined in 2000.   
60 The 1997 Agreement on Trade an d Economic Cooperation with Ge orgia, which became effective 
from 6 January 2006, does not provide for trade preferences. 
61 CIS states have generally poorly applied commitments on national treatment of transport companies 
and levying transit fees that reflect costs, especia lly for road transport (World Bank, 2005a, p. 61).  
62 World Bank (2005a), p. 60. WT/TPR/S/170 Trade Policy Review 
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(iii) Unilateral trade preferences 
55. Kyrgyz exports to industrial markets are eligib le for non-reciprocal pr eferential treatment 
under the Generalized System of Preferences (GSP).  According to the authorities, the EU preferences 
are the most important, with other schemes, such as  those of Japan and the United States, of limited 
value to Kyrgyz exporters due to their comp lexity and restrictive rules of origin.   
56. The Kyrgyz Republic's system of preferences provi des a tariff preference margin of 100% of the 
MFN tariff rate (i.e. duty free) on all imports from least de veloped countries.63  The Kyrgyz Republic 
does not provide tariff preferences  for imports from developing countri es.  The system of preferences 
may be modified in accordance with the Customs Code.   
(5) FOREIGN INVESTMENT REGIME  
57. Attracting foreign direct investment (FDI) is a priority of the Kyrgyz Republic.  It has 
liberalized its investment regime and undertaken business regulatory reforms.  Establishing a favourable investment climate is a main objectiv e of the Comprehensive Development Framework, 
which aims to increase investment, including FDI, from 9.2% of GDP in 2000  to 16.8% in 2010, to 
boost growth and export diversification.  Key aspects to improve the investment climate include 
amending migration laws, continuing privatization, achieving more transparent investment and related 
legislation, addressing wi despread corruption, and changing tech nical standards and regulations. Four 
free economic zones have been promoted to attract FDI;  however, three are to be dissolved and only 
one, in Bishkek will remain (Chapter III). 
58. A comprehensive approach to developing a fa vourable investment climate began in mid 2001 
when the new national investment policy was adopted.  The 1997 Law on Foreign Investment 
(amended in 1998 and 2002) provided for non-expropr iation, currency convertibility, the right to 
expatriate funds, free access to international ar bitration, and national treatment, as well as non-
discrimination among foreign investors.  The investme nt regime was again strengthened in 2003 when 
the new Law on Investments was introduced.  This  regulates the policy for both domestic and foreign 
investment, and provides investors with  a fair legal regime and protection.
64  Most importantly, it 
extends equal and non-discriminatory national treatme nt to foreign investors, giving them identical 
legal status and conditions.   
59. Foreign investors may operate as wholly foreign-owned or as joint ventures with Kyrgyz or 
other partners.65  All activities are open to FDI, and it seems that only air transport is subject to a 
foreign equity cap (49%).66  Foreign investors can participate in privatization of state enterprises.67  
                                                      
63 Forty-seven least developed countries are covered in accordance with the harmonized system of 
preferences adopted by EAEC members and pursuant to government approval. 
64 It protects investors against expropriation, except for public interest when it is to be based on non-
discrimination, "proper legal order and timely, appropriate real compensation for damages, including lost profit, 
based on fair market prices."  Investment disputes ar e to be settled by procedures agreed in advance, or by 
Kyrgyz courts, unless one of the parties requests international arbitration, which may be under either the 
Convention for the Settlement of Investment Disputes Betw een States and Citizens of Other States (ICSIC), or 
the UN Commission on International Trade Law Arbitra tion Rules.  While the Kyrgyz Republic signed the 
ICSID in June 1995 it has not yet been ratified.  Th e legislation also ensures that amendments affecting 
investment will be unchanged for a decade (excluding constitutional, taxation and other legislative changes relating to national security, health and environmental protection). 
65 Foreign investors must hold at least a one third share of equity or votes.  
66 FDI may be restricted in certain areas such as road  construction, healthcare, and military activities, in 
order to protect national security. Kyrgyz Republic WT/TPR/S/170 
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No performance requirements, such as use of local inputs, labour or minimum export shares, or local 
content plans are known to exist.  According to the authorities, foreign workers and employees of 
overseas companies are automatically provide d visas, and work and residence permits.68  Foreign and 
domestic investors must obtain the same production licences, where required.  Foreign investors 
cannot own land, including farmland.69 
60. A key instrument in reforming the investme nt and business climate since 2001 has been the 
preparation of annual government action plans (ca lled an investment matrix), based on yearly 
high-level summits involving investor s, business, government, and donors.  Investment Matrix V ran 
until August 2005, but has not yet been replaced.  Matr ixes provide for wide-ranging reforms, such as 
deregulation of the economy; legal and judici al strengthening;  tax, budget, and banking 
improvements; and enhanced investment marketi ng.  Implementation is managed under the Prime 
Minister's direction, based on working groups est ablished by the Investment Round Table (IRT), a 
non-governmental organization created in August 2001.  It reports on implementation to the 
Consultative Council on Foreign Investment, a group of donors, investors, and private- and government-sector representatives (created in 2002 ), which meets quarterly under the President's 
chairmanship.  However, despite significant impr ovements, matrixes generally have been overly 
ambitious and have suffered implementation dela ys, especially in ensuring that the necessary 
legislative, institutional, and regulatory changes are made.
70  The Secretariat of the Special 
Representative of the President Concerning Attraction of Foreign Investment was formed in 2001 as 
the lead agency in formulating strategies to attract  FDI.  Along with the Council, it has a major input 
into summits and in the Investment Matrix, but  is neither an executing agency nor a formal 
government body.  
61. In 2002, a one-year moratorium on new regulat ory and administrative investment barriers was 
imposed, and the elimination of unjustified barriers was made a priority.71  However, investment is 
still hampered by bureaucratic and administrativ e barriers; weak legal institutions, including 
inefficient, opaque, and unnecessary regulation, and excessive red tape, su ch as duplicative licensing 
and inspection requirements;  public corruption;  le gal instability, unpredictability, and inconsistency;  
weak enforcement;  and perceived judicial non-independence.72  Business licensing and registration 
procedures remain cumbersome, non-transparent, a nd overly obtrusive, and the Government's record 
in resolving investment disputes is poor, includi ng in protecting and enforcing contractual and 
property rights.73  Politically connected businesses have be nefited from government regulatory and 
other decisions to effectively control lucrativ e sectors, such as cotton and tobacco, thereby 
discriminating against foreign participation.74  Virtually all businesses are subject to state inspection, 
but efforts have been made to reduce abuse, su ch as listing agencies with control authority and 
limiting inspections to once per year (Government R esolution, 2002).  There have also been some 
                                                                                                                                                                     
67 While the Government may restrict foreign participation in the privatization of certain industries (1994 
Law on Denationalisation and Privatisation of Stat e Property), this has not happened (WTO document 
WT/ACC/KGZ26, 31 July 1998, p. 8). 
68 Foreign investors are issued one-year to five-year visas. 
69 Foreign investors, including individuals, may lease agricultural land for up to 49 years, and can use 
land in cities, towns, and villages temporarily, for a fixed term lease.  They  may rent immovable property on the 
same basis as Kyrgyz citizens a nd legal persons (WTO document WT/ACC/KGZ26, 31 July 1998, p. 8). 
70 World Bank (2005a), and Information for Investment Decisions (2002). 
71 More than 30 permits hindering enterprise development have been repealed. 
72 World Bank (2005a). 
73 UNESCAP (2003), p. 25.  For example, obtaining permits for construction designs reportedly takes 
five to eight times longer than the mini mum 50 days specified in the regulations. 
74 UNESCAP (2003), pp. 17 and 28. WT/TPR/S/170 Trade Policy Review 
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backward developments, such as requiring foreign i nvestors since 2002 to pay the equivalent of the 
foreign worker's full salary into the Social F und, while domestic investors contribute only 28%.75 
62. Renewed impetus for economic reforms to improve the investment and business environment 
has occurred since 2004 (Presidential Decree on State Policy in the Field of Formation of Favourable 
Investment Environment), but there is some recent evidence that the investment climate continues to 
deteriorate.76  Improved infrastructure is also needed to enhance the investment and business climate.  
Only foreign entities, including joint ventures, are eligible for concessions, which are for periods of 
5 to 50 years (1992 Law on Concessions and Concessionaire Entities).77   
(i) Incentives and promotion 
63. The 2003 law contains no special FDI incentives (e.g. tax holidays);  these were removed in 
the 1997 legislation.78  While the 2003 legisl ation enables the Government to support priority 
economic and social sectors and certain areas subject to state development programmes, the 
authorities indicate that no such measures exist.   General tax incentives also apply to foreign 
investors. 
64. The Centre for Attraction of Direct Invest ment, created in 2000, performs investment 
promotion and links foreign investors with govern mental structures and lo cal entrepreneurs, and 
provides a limited range of free services.79  Due to financial constraints, it no longer operates a 
one-stop shop to assist investors obtain the necessary permits.   An Economy Deregulation Concept 
was adopted in 2004 to stimulate investment by  reducing bureaucratic interference in businesses and 
allowing greater economic freedom.  An Expert and Appellate Council was crea ted to handle investor 
complaints against refusals by government agencies to issue licences or other authorizations, and to 
protect them from unsubstantiated state inspections. 
(ii) Bilateral investment treaties and double taxation agreements 
65. The Kyrgyz Republic has concluded several inv estment treaties, but many have not entered 
into force.80  In 2004, it ratified agreements with Finla nd, Moldova, and Kazakhstan, signed in 2003, 
2002, and 1997, respectively.  Similar agreements are being negotiated with other countries, and are 
expected to be signed shortly with Austria, Be lgium, Bosnia and Herzegovina, Denmark, Hungary, 
                                                      
75 Report by Peter Corbin, PCA Project, p. 29, supplied by the Kyrgyz authorities. 
76 International Business Council (IBC) (2006), pp . 16-19.  This report found that the legal 
environment, public administration and customs controls were deteriorating, with the legal environment causing most concern.  The survey also concluded that among the top ten issues of concern to investors, all but the tenth 
ranked issue, "exchange rate stability" were seen as wors e than in neighbouring countries:  the top nine were 
safety and security, availability of qualified personnel, ta x rates, predictability of ru les, laws and regulations, 
corruption of public officials (found to be the relativ e worst factor compared w ith neighbouring countries), 
consistency of court judgements, tax administration, business regulations, licences and permits, and ease of 
dealing with bureaucracy.  
77 Concessions are permits issued to foreign investors to run certain activities connected to leasing 
property, land, and underground mineral resources. 
78 Previous investment incentives continued until their expiry date.    
79 It was transferred from the Ministry of Economic Development, Industry and Trade to the Ministry 
of Economy and Finance in January 2006. 
80 Agreements with Armenia, Azer baijan, Belarus, China, France, Georgia, India, Iran, Moldova, 
Turkey, Great Britain, United States, and Uzbekistan have entered into force.  The Kyrgyz Republic has ratified 
those with Finland, Germany, Indo nesia, Kazakhstan, Malaysia, Mongolia , Sweden, Switzerla nd, Tajikistan, 
and Ukraine, but not the agreement with Pakistan. Kyrgyz Republic WT/TPR/S/170 
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Italy, the Netherlands, Romania, Russia n Federation, and the Slovak Republic.81  T h e  K y r g y z  
Republic is a signatory of the Multilateral Inv estment Guarantee Agency.  It has concluded 
agreements on avoidance of double taxation with 20 countries;  the latest were signed with Moldova 
in 2004, and Pakistan and Germany in 2005, and are undergoing ratification.82   
(6) TRADE -RELATED TECHNICAL ASSISTANCE  
66. Technical assistance from various sources has s upported the Kyrgyz Republic's transition to a 
market-based economy, based on more open trade a nd investment regimes.  Expenditure for 2001-05 
totalled some US$40 million, and was almost US$11 million in 2004.  Major bilateral donors have 
included the United States, which has provided c onsiderable assistance on mainstreaming trade 
policies into the country's poverty reduction strategy , the EC, Japan, Sweden, and Korea.  Other areas 
of assistance include technical barriers to trad e, trade facilitation, customs valuation, accession, 
dispute settlement, intellectual property protection,  tariff negotiations (non-agricultural market 
access), rules, trade and competition, and trade-related training and education. 
67. WTO technical assistance has focused on increasing government officials' understanding of 
trade-related issues.  It has c onducted regional and nati onal workshops as well as global seminars on a 
range of related topics.  Major topics have include d those covered by bilateral donors, as well as trade 
and investment, services, and government procurement.  Since 2001, Kyrgyz officials have participated in over 60 WTO training activities, in cluding national, regional,  and global workshops, 
seminars, and technical missions.  There is a WTO Reference Centre in the Ministry of Industry, 
Trade and Tourism. 
68. While past assistance from these many sources has been valuable, it would appear that further 
efforts might be required in a number of areas. Poor capacity of ministries and agencies to fulfil WTO obligations hinders trade policy development, an d technical assistance is needed to implement 
commitments, including new arrangements resulti ng from the Doha negotiations.  Areas requiring 
particular attention are implementation of SPS rules by the Ministry of Agriculture, Water Resources 
and Processing Industry, and the Ministry of Health ;  GATS services obligations;  and negotiations to 
join the Government Procurement Agreement. 
                                                     
 
81 In June 2004, the Kyrgyz Republic, along with Tajikistan, Turkmenistan, and Uzbekistan, signed a 
Trade and Investment Framework Agr eement with the United States.   
82 Agreements with Austria and Malaysia are yet to be ratified.  Agreements have entered into force 
with Belarus, Canada, China, Finl and, India, Iran, Kazakhstan, Mo ngolia, Poland, Russian Federation, 
Switzerland, Tajikistan, Turkey , Ukraine, and Uzbekistan.