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Kazakhstan supports Kyrgyzstan, but fears Chinese transit

Kazakhstan supports Kyrgyzstan in adapting to the norms of the Eurasian Economic Union. At the same time, Kazakhstan is concerned about the increase in Chinese transit, the Prime Minister of Kazakhstan Bakytzhan Sagintayev said at a meeting of the Eurasian Intergovernmental Council today.

He noted that for two years of EEU existence the union succeeded as an effective integration association. These years were not easy for the countries. External factors and instability in the financial and trading markets had their effect.

According to the calculations of Kazakhstan, the mutual trade turnover of EEU countries decreased by 11 percent.

«In such an environment, it is important to consolidate efforts to build up trade between our countries. The key issues there are the issues of removing barriers and restrictions. This work must be done systematically and in stages,» Bakytzhan Sagintayev is sure.

The Prime Minister of Kazakhstan reminded that the commissions of experts had done a significant work in this direction. So, a registry of more than 60 barriers and restrictions has been agreed. In the future, road maps for their elimination will be worked out. This will significantly simplify the access of enterprises to the general markets and create the conditions for their development.

Another area of ​​work is creation of better working conditions for businesses and manufacturers. This was stated by the President of Kyrgyzstan in his address to the heads of our countries. Entrepreneurs expect a positive effect from the creation of a common market within the countries’ integration. Therefore, it is important to develop general rules of the game. In this regard, the business expects the early adoption of the Customs Code. Kazakhstan hopes that in the near future the code will be signed by all countries of the union and it will come into force by the end of 2017.

«We are interested in the joint solution of the whole range of issues arising in the field of customs clearance. Thus, according to the estimates of the customs services, possible risks of insufficient tax administration are noted when transferring Chinese goods to the territory of Kyrgyzstan. This is evidenced in particular by 9.5 times growth in the transit traffic through Kazakhstan in 2016 compared with 2015. A working group will be established to study the issue. In May, it should report on the work done,» Bakytzhan Sagintayev said.

Kazakhstan once again confirmed its intention to support Kyrgyzstan to adapt to the conditions of EEU.

So, in December, there was signed an agreement and a protocol on the allocation of appropriate aid to Kyrgyzstan by Kazakhstan. In addition, an agreement on the early provision of a unified railway tariff for the transport of Kyrgyz goods through Kazakhstan was signed and entered into force. It came into force in January 2017.

According to experts, the early application of this agreement will allow Kyrgyz producers to save about $ 60 million.

Since January 1, 2017, the list of goods permitted for movement from Kyrgyzstan to Russia through Kazakhstan has been expanded by 86 additional groups of goods.

Bakytzhan Sagintayev

According to the Prime Minister of Kazakhstan, the list of Kyrgyz products allowed for import into the Republic of Kazakhstan has been expanded by 55 groups of goods produced in Kyrgyzstan.

It should be noted that earlier only 14 groups of Kyrgyz goods were imported into five regions of Kazakhstan. In addition, the Kazakh side is ready to expand the list of Kyrgyz enterprises that supply products to the Republic of Kazakhstan.