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Kyrgyzstan and WTO

More than 140 countries of the world are the members of the World Trade Organization, and in the nearest future the number of WTO members will increase, for practically every country today aims to create a modern effective economy and equal participation in world trade.

Kyrgyzstan first of the former USSR countries had successfully completed the negotiations with WTO and became a full member of this organization in December, 1998.

Today we can talk about positive results caused by WTO membership of the Kyrgyz Republic:

- first of all, our country achieved a regime of optimal favor for export operations and national regime in all countries – WTO members. There is a general guarantee of WTO rules execution by its members, in particular for instance, it is prohibited to establish restrictive measures that harm the interest of other WTO members;

- KR legislation is brought to conformity with international standards. It is important to note that the laws adopted in purposes of joining to WTO independently from it, for establishment of regimes assisting to trade and investments in the KR, and that agree with the purposes of the program of republic’s economy reformation;

- referral services were created for correlation with WTO regarding issues of development, adoption and application of technical regulations, standards, sanitary and phytosanitary measures under the State inspection of standardization and metrology of the Ministry of foreign trade and industry of the KR;

- in June, 2000 USA had repealed an amendment of Jackson-Vanik to the Section IV of the US Law on Trade and Development regarding Kyrgyzstan, the force of which applied to the KR since the Soviet Union period. This amendment assumes decline in the favor regime, in providing the credit programs, credit and investment guarantees and any commercial agreements for the countries with non-market economy, where the principles of emigration freedom are not observed. Repeal of the Jackson-Vanik amendment provides for application of absolute normal trade relation and obligations according to WTO agreements;

- permanent and relatively not high rate of customs duties on goods, being imported to the KR, creates stable conditions for enterprises that need an import of raw materials and spares;

- the earlier country obtains experience of work with such organization as WTO, the better it is for economic and structural reforms within the country, because newly adopted legal acts are developed in accordance with international requirements.

Besides of foresaid and purely economic benefits that are being achieved through elimination of barriers for free trade exchange, this system positively affects political and social situation in countries-members, and individual welfare of citizens. Advantages of WTO trade system reveal at all levels – particular citizen, country and world community as a whole, and we can highlight major 10 out of them:

- The system assists to preservation of peace
- The disputed are conducted constructively
- Rules ease the life for everybody
- Free trade reduces life expenses
- More various choice of goods of different quality is being offered
- The income is increasing due to trade
- Trade stimulates economic growth
- Basic principles make life more productive
- Governments are protected from lobbying
- The system encourages the right policy of the governments