Kyrgyzstan increases mutual trade turnover with Kazakhstan

/By AzerNews/

By Vusala Abbasova

Kyrgyzstan plan to double increase mutual trade turnover with Kazakhstan during 2015- 2017.

The mutual trade growth will positively influence on the local production growth, as well as create favorable competitive environment on the domestic market Yerbolat Dossayev, Kazakhstan Minister of National Economy said at the plenary session of parliament on July 1.

Kyrgyzstan import from Kazakhstan mainly wheat, coal, iron steel flat-rolled products, non-alloy steel, flour, and limestone flux.

Kyrgyzstan's territory, historically, was located on the Silk Road that made country with geographically advantageous position. Such location have made this country a transit zone for goods heading from China to Europe.

Kyrgyzstan growth rate of the volume turnover in wholesale trade increased by 1.6 times in January-May this year, in comparison with the same period of previous year reported the National Statistics Committee.

However, the growth rates of retail trade turnover decreased by 1.3 times, due to the reduction in sales volumes in the country's markets.

Kyrgyzstan foreign trade turnover has decreased by 11.2 percent, or by $204.3 million during January-April 2015

The exports increases by 5.2 percent (by $24.1 million), while imports fell by 14.9 percent (by $228.4 million), according to the date.

The share of exports to CIS countries fell up to 26.4 percent, while to non-CIS countries increased up to 73.6 percent.

The greatest share (61.4 percent) of trade export took gold shipments which increased 1.5 times largely due to Kumtor gold mine received to Kyrgyzstan more than $2.7 billion over 20 years.

Kyrgyzstan exports for irrigation to such neighboring countries as Uzbekistan, Kazakhstan and Tajikistan, due to abundant water resources. Kyrgyzstan re-exported goods coming from China, India, and Turkey.

Moreover, 95 percent of local traders goods re-exported to countries in the Customs Union – Kazakhstan, Russia, and Belarus reported the University of Central Asia.

Kyrgyzstan accounts for approximately 24 percent of the country's GDP in agriculture sector, that has not only economic but also social and political importance.