Transcript Document

Interlinkages between Trade and Sustainable
Development:
Launch of Bridges Russian Edition
The International Centre for Trade and
Sustainable Development (ICTSD) and
ECO‐Accord
Experience
of the Kyrgyz Republic
Interlinkages between Trade and Sustainable
Development:
Launch of Bridges Russian Edition
1. are there any effects (positive or negative) of
WTO accession for Kyrgyzstan;
2. lessons learned from accession process;
3. what are critical issues for Kyrgyzstan on Doha
round negotiations? (your position, activity of
RAM coalition).
The Kyrgyz Republic is located in the heart of Asia
 Cross road beetwen
Europe and Asia
 Strategic location
between China,
India, Persian Gulf
countries, Russia and
Kazakhstan
 About 94% of the
territory is mountain
ranges
Main export and import items
Export:
 precious metals
 gold
 electric power
 agriculture goods
 electric appliances
 textile
Import:
 fuel and energy resources
 equipment
 chemicals
 consumer goods
 transport means
The main obstacles in accession
process to the WTO.
• Complexity of conducting bilateral negotiations on tariffs and
obligations on accession to the market of services;
• Lack of local specialists with sufficient knowledge on International
Trade;
• The interdepartmental bureaucratic barriers hindering the quick
acceptance of the coordinated decisions;
• Limit of financial resources in the republic required for participation of
the delegation in the meetings of Working Parties and bilateral
negotiations on accession of Kyrgyzstan in Geneva.
Prerequisites of Kyrgyzstan's
accession to the WTO
•
Improvement of existing conditions for access of Kyrgyzstan's products to foreign
markets and provision of non-discriminatory treatment for Kyrgyzstan's exporters;
•
Access to the international dispute settlement mechanism;
•
Creation of a more favorable climate for foreign investments as a result of change in
legal system in accordance with the WTO standards;
•
Creation of conditions for growth of domestic production’ quality and competitiveness
as a result of increased flows of foreign goods, services and investments to the
Kyrgyzstan's market;
•
Participation in negotiations on the international trade agreements for the benefit of the
national interests.
•
Development of Kyrgyzstan’s Trade of
Goods to Countries-members of WTO
500
450
400
350
300
Export
250
Import
200
150
100
50
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Main trade partners in 2006 :
Export
Kazakhstan
12,1%
United Arabic Emirates
26,3%
Canada
5,9%
Russia
19,2%
USA
0,4%
Germany
0,4%
Turkey
2,4%
China
5,5%
Uzbekistan
2,0%
Main trade partners in 2006 :
Import
Germany
5,6%
USA
4,7%
Canada
1,3%
United Arabic Emirates
0,8%
Turkey
Kazakhstan
3,5%
21,6%
China
8,5%
Uzbekistan
Russia
5,5%
31,2%
Development of Kyrgyzstan’s Trade of
Services
500
450
400
350
300
Export
250
Import
200
150
100
50
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
Attraction of Foreign Investment to
Kyrgyzstan
direct investment
250
200
150
investment
100
50
0
2001
2002
2003
2004
2005
2006
Customs tariff movement since 2000
(position points)
12000
10000
255
596
4468
4560
4017
123
136
1416
6000
271
345
343
332
332
80004588
486
155
155
4094
4067
1459
1442
4000
5488
5475
5597
2000
2001
2002
2000
4482
4783
4811
2003
2004
2005
0
20%
17,5%
15%
12%
10%
5%
0%
Income of Customs duties
600
505,1
mln.Som
500
413,4
418,5
441,8
2002
2003
2004
400
300
269,13
296,95
200
100
0
2000
2001
2005
Conclusion
•
Economy of Kyrgyzstan is stable in structure. The international financial institutions and
donors agree that economic situation in Kyrgyzstan is good and see prospects for further
growth
•
This analyses of Kyrgyzstan's economy shows, that the WTO membership does not
guarantee to bring immediate benefits.
•
However, the situation may change after the accession of its main trading partners
(Russia Kazakhstan and Uzbekistan)
•
The membership in the WTO of this countries will allow promote trade relations on
WTO MFN based rules (transit issues is important for Kyrgyzstan)
•
On the other hand, one could assert, that Kyrgyzstan achieved the important political
and economic advantages, being the participant of multilateral trading system.
•
Participation in this organization gives long-term advantages.
•
Membership in the WTO is a support, but not a guarantee, for the expansion of export,
fast industrialization and development or high levels of economic growth and
unconditional growth of direct investments.
•
The most part of economic influence may be observed only in the long-run.
Conclusion
Some benefits accrued by Kyrgyzstan from
the WTO membership is its role in the
international political and economic arena
to be influenced in global rule making
process of multilateral trading system.
Formula
The following formula shall apply on a line-by-line basis:
(a or b)  t 0
t1 
(a or b)  t 0
•
•
•
•
•
•
where,
t1= Final bound rate of duty
t0= Base rate of duty
a = [8-9] = Coefficient for developed Members
b = [19-23] = Coefficient for developing Members
Main issues of NAMA negotiations
• to reduce or as appropriate eliminate tariffs
• reduction or elimination of tariff peaks, high
tariff non-tariff barriers,
• Product coverage shall be comprehensive
and without a priori exclusions.
Current situation for RAM
countries on NAMA negotiations
•
there is a consensus that Moldova, the Kyrgyz
Republic and Armenia should not be required to
undertake tariff reductions in this Round,
particularly in light of their economic circumstances.
•
Former Yugoslav Republic of Macedonia, Saudi Arabia
and Viet Nam should be excused from further market
access commitments, in view of their very recent
accession and the depth of their market access
commitments.
Small, Vulnerable Economies
• Those Members having a share of less than 0.1 percent of world
NAMA trade for the reference period of 1999 to 2001 may apply the
following modality of tariff reduction instead of the formula
• (a) Members with a bound tariff average of non-agricultural tariff
lines:[1]
• (i) at or above 50 percent shall bind all their non-agricultural tariff
lines at an average level that does not exceed an overall average of 22
percent;
• (ii) at or above 30 percent but below 50 percent shall bind all their
non-agricultural tariff lines at an average level that does not exceed an
overall average of 18 percent; and
• (iii) below 30 percent shall bind all their non-agricultural tariff lines
at an average level that does not exceed an overall average 14 percent.
•
Main issues in Agriculture
negotiations
Where the base level of Overall Trade-Distorting Domestic Support
is greater than US$60 billion, or the equivalent in the monetary
terms in which the binding is expressed, the reduction shall be
[75][85] per cent;
Where the base level of Overall Trade-Distorting Domestic Support
is greater than US$10 billion and less than or equal to US$60
billion, or the equivalents in the monetary terms in which the
binding is expressed, the reduction shall be [66][73] per cent;
Where the base level of Overall Trade-Distorting Domestic Support
is less than or equal to US$10 billion, or the equivalent in the
monetary terms in which the binding is expressed, the rate of
reduction shall be [50][60] per cent.
Position of Kyrgyzstan
• Small low-income, recently acceded
Members with economies in transition
shall not be required to undertake
reductions in bound duties