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The speech of Prime Minister Bakytzhan Sagintayev at the meeting of the Eurasian Intergovernmental Council

by March 7, 2017 Market

Today in Bishkek Prime Minister Bakytzhan Sagintayev addressed the meeting of the Eurasian Intergovernmental Council held in an extended format.

The speech of Prime Minister B. Sagintayev addressed to the meeting of the Eurasian Intergovernmental Council held in an extended format.

Bishkek, March 7, 2017.

Dear colleagues!

The EEU in more than two years has succeeded as an efficient integration association. But these years were not easy for our countries. There were impacts from external factors, instability of global financial and trade markets. In connection to which the GDP of the Union declined by 0.7%, our mutual trade turnover declined by 11%.

In such a period it is important to consolidate mutual efforts to strengthen interaction, to form new efficient tools for increasing trade between our countries.

The key direction in this activity is the removal of barriers and restrictions. This work must be done systematically and in stages. The Commission and experts of our countries have already conducted work in this direction. A register of more than 60 barriers and restrictions has been agreed upon. In the future, Road Maps will be created to eliminate them. This will allow drastically facilitate access for our enterprises to the general markets, and also create additional conditions for their development.

Another element of strengthening interaction within the Union is creation of the best conditions for manufactures and businesses of our countries. This was stated by the President of Kyrgyzstan Almazbek Atambayev in his address to the Heads of our countries.

Entrepreneurs of the EEU expect a great positive effect from integration, creation of new markets. Therefore, it is important to achieve quality, facile for business, and efficient regulatory practice in those sectors where we agreed to implement unified regulation, so called common rules of the game.

In this regard, businesses of our countries expect the early adoption of the Customs Code, which includes provisions on facilitating customs procedures, electronic declaration with shifting emphasis on post-customs control. We hope that in the near future the Code will be signed by all countries and by the end of this year will come into force.

At the same time, we are interested in joint solution of a set of issues arising in the sphere of customs clearance. Thus, according to the estimates of customs services, there is a risk of insufficient levels of customs administration in the flow of Chinese products transit to the territory of the Kyrgyz Republic. This is particularly evidenced by the growth of transit traffic from China by road 9.5 times in 2016.

System approach, in our opinion, must also be applied in considering initiatives on developing digital agenda of the EEU. Undoubtedly, our systems should be able to interface with each other. This will allow efficient implementation of mechanisms to eliminate administrative obstacles, create a reserve to develop new economy. Along with that, issues of digital agenda must be thoroughly considered, to not allow blocking the implementation of national programs within this area.

The launch of new projects undoubtedly must be accompanied by efficient work on providing favorable conditions to access foreign markets. Connecting to this, great significance is given to the implementation of the EEU international agenda. Currently, negotiations are underway on concluding trade and economic agreements with a number of states. At various levels of preparedness are topics of cooperation with China, India, Iran, Serbia, Israel, Mongolia, Singapore.

Despite the pace of negotiations, requests of our industries and enterprises must be fulfilled. This will become the basis for implementing export potential and attracting investments into the economies of countries of the EEU.

We believe that for the success of our integration association, dynamic and progressive development of each of our countries is important. Therefore, we reaffirm our intension to support the Kyrgyz Republic to adapt to the conditions of the EEU. In December, we have signed the Agreement and Protocol on the allocation of relevant assistance to the Kyrgyz Republic.

In addition, we also have also signed the Agreement on the early provision of a unified railway tariff for transporting goods through Kazakhstan. It came into force in January this year. According to the estimates of our experts, early adoption of Agreement norms will allow Kyrgyz shippers save around 60 million USD.

Starting January 1 this year, the list of goods allowed to move from Kyrgyzstan to Russia through Kazakhstan was expanded by 86 additional groups of goods.

Additionally, from February this year, 46 groups of goods subject to veterinary control have been allowed to enter the whole territory of Kazakhstan, and the list of goods permitted for import into the territory of five regions of Kazakhstan was expanded to 39 groups. Thus, the list of Kyrgyz goods permitted for import into Kazakhstan was expanded in 85 groups of goods manufactured by Kyrgyz enterprises from the relevant register of enterprises of the EEU.

We are also ready to, in the established order, expand the list of Kyrgyz enterprises ready for exporting their goods into Kazakhstan.

I am sure that building our relations based on principles of mutual support, finding compromises and developing efficient solutions will become a strong incentive for strengthening the Union, increasing its attractiveness in the global community.

Source: Government of the Republic of Kazakhstan