Kyrgyzstan becomes full-fledged member of Eurasian Economic Union

Kyrgyzstan has become a full-fledged member of the Eurasian Economic Union alongside Kazakhstan, Russia, Belarus and Armenia. Customs control procedures at the Kyrgyz-Kazakh border have been abolished, RT TV Channel reports, citing the Eurasian Economic Committee.

“August 12 the Agreement on Kyrgyzstan’s accession to the Eurasian Economic Union came into force and Kyrgyzstan has become a full-fledged member of the Union”, the statement reads.

“Accession opens new opportunities for Kyrgyzstan. There are no longer any barriers to free movement of goods, services, capital and workforce. The accession brings forth new investment opportunities and greater prospects for large-scaled infrastructure projects, notably in power industry, transport, and agriculture. Kyrgyzstan citizens have obtained the right to work in any of the member states on the same conditions as citizens of the member state of their preference”, the statement elaborates.

Kyrgyzstan will enjoy the single customs tariff and the single foreign trade commodity classification in effect within the Eurasian Economic Union, as well as the single requirements to products, including documents confirming safety of a particular product.

Economic experts are expecting cheaper Kyrgyz products to badly hit Kazakhstan-based retailers that used to import the products and some of domestic producers. However, Kazakhstan-based producers capable of catering to both markets are expected to greatly benefit from the new conditions.

“Upon Kyrgyzstan’s accession to the Eurasian Economic Union there will be no more customs barriers. No public bodies will be inspecting goods transported to or from Kyrgyzstan. Kyrgyz exports are set to expand”, Gennady Shestakov, Chairman of the Kazakhstan’s Association of  Customs Brokers, said in an interview for Almaty TV Channel.

To protect domestic car-makers, Kazakhstan has only allowed free imports of foreign cars that were imported to Kyrgyzstan after January 1, 2014. Older cars can only be imported to Kazakhstan from Kyrgyzstan at the current duty rate (which is high enough to curb imports of old cars).